Swiss salaries: an overview by sector
Salaries in Switzerland are known to be particularly high compared to other European countries. As a result, Switzerland is often seen as a worker’s paradise. But what is the reality? What specific factors should be taken into account? Is there a Swiss minimum wage? What are the average salaries in Switzerland by sector?
Find out everything you ever wanted to know about salaries in Switzerland with this sector-by-sector overview.
What is the minimum wage in Switzerland?
As wage disparities are often significant depending on the sector in question, it is useful to know the national minimum wage. That said, as Switzerland is a federal state, there is no ‘Swiss minimum wage’ as such.
The Swiss minimum wage is actually set at cantonal level. Some Swiss cantons have a minimum wage. This is the case in Geneva, Jura, Neuchâtel, Ticino and Basel-Stadt. The minimum wage therefore ranges from CHF 19 per hour in Ticino (equivalent to approximately CHF 3,200 gross per month based on a 42-hour working week, or around €2,960) to CHF 23 per hour in Geneva (equivalent to approximately CHF 4,182 for a 42-hour working week, or around €3,870).
Outside these five cantons, there is no Swiss minimum wage, except where specified in a collective agreement (regardless of the canton). It should be noted that around one in three Swiss employees is covered by a collective agreement.
Swiss salaries: what you need to know
According to the Swiss Federal Statistical Office (FSO), the average monthly gross salary in Switzerland in 2018 was CHF 4,735, or around €4,025, but this attractive average figure masks certain specific factors that you absolutely must be aware of.
The number of weekly working hours in Switzerland is indeed higher than in France. Another notable feature is that the Swiss ‘gross-to-net pay ratio’ is much more favourable than in France. Finally, you will have to pay for your own health insurance: the cost of this should therefore be taken into account when calculating your Swiss salary, as it has a significant impact on your monthly income.
Please also note that in Switzerland, salaries are typically paid 13 times a year: 12 monthly salaries plus a 13th month’s salary in December. However, not all Swiss employers automatically offer a 13th month’s salary.
A higher number of weekly working hours than in France
Salaries in Switzerland are calculated on the basis of a 41.7-hour working week. This working week is one hour longer than the average in the European Union (EU) and 6.7 hours longer than the statutory working week in France.
The ratio of gross to net salary in Switzerland is more favourable than in France
The difference between gross and net pay is more significant in Switzerland than in most EU countries. Social security contributions (pension, unemployment insurance, etc.) account for between 13% and 17% of gross pay in Switzerland. By way of comparison, in France, they amount to 23% on average. Thus, for the same gross salary, a worker in Switzerland will have a higher net salary than a worker in France.
For this reason, Switzerland naturally attracts cross-border workers, who are willing to cross the border to earn more before converting their Swiss franc salary into the currency of their choice.
Health insurance is not included in the Swiss salary
As well as the cost of living, which differs from that in France, there is one important factor to bear in mind when calculating a Swiss salary: health insurance is paid for entirely by the employee. You will therefore need to pay your Swiss health insurance contributions separately.
Even if you decide to work in Switzerland whilst living in France (as a cross-border worker), you will need to take out Swiss cross-border health insurance.
To give you an idea, according to the FSO, a household pays an average of CHF 554 (approximately €454) per month for basic health insurance, CHF 146 (approximately €120) for supplementary health insurance and CHF 191 (approximately €157) for other types of insurance; these are significant sums, so you should be mindful of the exchange rate risk.
An overview of Swiss salaries by sector
Salaries in Switzerland depend not only on the role held, but also on the sector and the level of seniority in question.
The highest-paying sectors: banking, insurance and IT
Unsurprisingly, the banking, insurance and IT sectors top the list of the highest-paying industries in Switzerland. Across all skill levels, the Swiss financial sector (banking and insurance) offers an average gross monthly salary of over CHF 9,240 (approximately €8,504).
The IT sector is no exception. Salaries in the Swiss IT sector can range from CHF 5,136 gross per month (approximately €4,725) for a junior IT support technician, up to CHF 10,791 (approximately €9,927) for a senior IT architect, with an average of CHF 5,810 (approximately €5,345) for a junior systems engineer, or CHF 9,237 (approx. €8,498) for a senior data scientist.
It is worth noting that the thriving pharmaceutical and chemical sectors also offer very high salaries in Switzerland. This is particularly true for engineering roles (where the average gross annual salary is CHF 117,000, or approximately €107,874). Swiss watchmaking and luxury goods companies also offer attractive salaries (ranging from CHF 54,000 to CHF 121,000 gross per annum, or approximately €49,710 to €111,541).
The lowest-paying sectors: construction, hospitality and retail
In the construction sector, the average Swiss salary is CHF 6,000 gross per month (approximately €5,518), although there are significant differences between managerial staff and manual workers. In the hospitality sector, Swiss salaries are CHF 4,200 gross per month (approximately €3,860) for a service staff member and CHF 6,000 (approximately €5,518) for a head chef. In the retail sector, the average salary for a Swiss sales assistant is CHF 4,000 gross per month (approximately €3,675).
A word about student interns and work-study students in Switzerland. Remuneration for interns in Switzerland ranges from CHF 500 (approximately €455) to CHF 2,000 (approximately €1,835). It can reach CHF 2,500 (approximately €2,295) for long-term placements requiring students from universities of applied sciences. These rates are comparable to those for Swiss work-study students.
We hope this overview of Swiss salaries by sector has helped to clarify things for you. Want to be sure you know the exact value in euros of a salary in Swiss francs? Use a real-time currency converter.
