Switzerland is a small inland federation of 26 cantons in Central Europe that has no official capital, but since the seat of the federal government and parliament is located in the city of Bern, the city is the de facto capital. The country’s population is about 8 million people, consisting of three main ethnolinguistic groups – German, French and Italian, and a small percentage of the Romansh-speaking population. There are about 2 million immigrants. In this sense, the Swiss do not have a single national identity, but are a group of peoples sharing a common history and values. Switzerland’s economy is one of the most developed in the world. It ranks nineteenth in terms of gross domestic product and sixth in GDP per capita. The quality of life in the country is highly appreciated, with Zurich and Geneva regularly occupying top positions in various world rankings.
Speaking of Switzerland, the first thing that comes to mind are expensive watches, elite chocolates and delicious cheeses. Indeed, the Confederation has all this and in such quantity that it is enough for all who are ready to spend their money. Those who have come to the country for impressions and tourism have the opportunity to rush to the emerald valleys and gorges, choose a tour of mystical lakes with camping stops or tour different wineries. The other thing Switzerland is famous for are local clinics and universities that have been unrivaled for several decades.
Switzerland, with its stable economy and high standard of living, is of great interest and in this episode, we will explore minimum and average incomes, the variety of occupations and the way wages are distributed in different regions. We will also look at income and cost of living taxes in Switzerland.
Minimum wage
Switzerland does not have a statutory minimum wage, which provides greater flexibility for employers and workers to negotiate working conditions. Focusing on collective agreements, wages are usually determined by industry.
Some cantons (provinces) have minimum wages for certain branches, but these are relatively rare.
The lowest minimum wages are around CHF 2,500 / €2,633 per month.
Average salary
The average salary in Switzerland is CHF 8,954 / €9,432 per month, with the most common salary being CHF 6,805 / €7,168. There is a gap between men’s and women’s salaries that is 25% in favor of men. Both sectoral and regional factors have a significant impact on the level of wages. The most prosperous in this respect is the largest city in Switzerland – Zurich, followed by Geneva and Basel.
From a professional point of view, the banking and insurance sectors are the most profitable. High-tech specialists and high-end pharmacists also receive high salaries. As a rule, Swiss citizens work in those prestigious industries where it is difficult for an immigrant to get such a position.
Distribution of wages by occupation
Let’s take a closer look at the average salary values by profession per month in Switzerland, which in certain professions are wide:
Doctor – 15 082 CHF / 15 887 €
Insurer – 10 143 CHF / 10 684€
IT – 10 873 CHF / 11 453 €
Accountant – 7 881 CHF / 8 301 €
Human Resources Specialist – 10 795 CHF / 11 371 €
Lawyer – 9 063 CHF / 9 546 €
Cook – 5 165 CHF / 5 440 €
Barman,Easel – 3 647 CHF / 3 841 €
Seller – 7 058 CHF / 7 434 €
Builder – 6 861 CHF / 7 227 €
Production employee – 2 595 CHF / 2733 €
Income taxes
The tax system in Switzerland is relatively complex and varies depending on the cantons (regions) and each canton has its own taxation system.
Tax rates also vary depending on taxable income and marital status.
Total taxes consist of three levels:
1. Federal tax:
It is imposed by the federal government on all individuals who live or work in Switzerland.
Tax rates are progressive and range from 2.14% to 31.07%.
2. Cantonal taxes:
Each canton (province) has its own taxation system.
Tax rates vary depending on the canton.
In total, cantonal taxes can add 10% to 30% to the federal tax.
3. Municipal taxes:
Municipalities in Switzerland also levy income tax.
Tax rates vary depending on the municipality.
In total, municipal taxes can add 5% to 20% to the federal and cantonal taxes.
However, taxes in Switzerland are generally low compared to many other European countries.
Cost of living
If you are considering moving to Switzerland, the different costs I will choose will help you make an informed decision about the costs associated with moving and living in this part of Europe.
Life in Switzerland is expensive and housing costs are no exception. The most expensive cities are Geneva and Zurich. Cheaper housing can often be found in rural areas, especially in small towns and villages in the east of the country. However, many areas that were once accessible have become quite expensive as people from all over the world decide to make Switzerland their home.
Housing costs:
For a 1-bedroom apartment outside the city center: 860 – 2 000 CHF / 905 – 2 106 €
Expenditure on food, groceries and restaurants:
Cheap restaurant: 15 – 35 CHF / 16 – 37 €
Coffee for removal: 3,50 – 6 CHF / 3.70 – 6.30 €
Bottle of Coca-Cola: 3 – 5 CHF / 3.15 – 5.30 €
1L milk: 1.20 – 2 CHF / 1.26 – 2.11 €
Bread: 1.80 – 4,50 CHF / 1.90 – 4.74 €
12 eggs: 3 – 8 CHF / 3.15 – 8.43 €
1 kg chicken fillets: 12 – 36 CHF / 12.64 – 37.92 €
1 kg of beef: 25 – 80 CHF / 26.33 – 84.27 €
1 kg of apples: 2 – 5 CHF / 2.11 – 5.3 €
1 kg white rice: 1,50 – 4,50 CHF / 1.58 – 4.74 €
For transport:
Switzerland has an amazing public transport network – with trains and buses you can get to almost every corner of the country. The system, like everything in Switzerland, works very well and is accurate and reliable, so if you live in a big city, owning a car is not mandatory. Many Swiss who live in cities have cars that they only use on weekends.
Monthly card – 70 – 150 CHF / 74 – 158 €
Internet
Plans for Internet and telephone services in Switzerland are very expensive compared to many other countries around the world.
For month 94 – 105 CHF / 99 – 110 €
For clothing, personal belongings, fitness and leisure:
Here are some of some useful prices.
Pair of jeans: 50 – 150 CHF / 52.67 – 158 €
Summer dress: 30 – 80 CHF / 31.60 – 84.27 €
Running shoes (sneakers): 70 – 159 CHF / 73.74 – 167.50 €
Business shoes: 80 – 250 CHF / 84.27 – 263.30 €
Short visit to the doctor (15 minutes): 120 CHF / 126.40 €
Deodorant: 4 CHF / 4.20 €
Champagne: 3.90 CHF / 4.10 €
Toilet paper (4 rolls): 2,75 CHF / 2.90 €
Gym membership: 45 – 120 CHF / 47.40 – 126.40 €
Cinema ticket: 16 -24 CHF / 16.80 – 25.30 €