"Life is dear." Geneva sets the world's highest minimum wage

Economic situation in the country

The economy has been focused on attracting foreign investment into the banking system for centuries. The agricultural sector is developed thanks to small farming with significant government support. Viticulture has been actively introduced in Switzerland for 10 years now. This new direction is quickly acquiring wineries.

Based on the amount of money that remains in a Swiss person’s pocket after paying all taxes and mandatory living expenses, then according to this indicator the country is in third place in the world rankings after Luxembourg and Norway. The cost of living per person in Switzerland is 2,239 francs per month.

Minijob status in Germany

Especially for those people who want to work part-time, in Germany there is a practice of working for a minimum amount of time. Typically this is 50 hours per month or 2.5 hours per day. It's called Minijob.

Such workers are called minijobbers. They can be an employee of any profession, from a cleaner to an engineer. Minijobber has the following advantages:

• There are no social contributions from the salary; they are paid by the employer.
• Payroll tax is 2%.
• The employee himself decides whether he needs to make contributions to the State Pension Fund.

The minimum monthly wage in this case is up to 450 euros, and per year - 5,400 euros.

Some features of the wage payment procedure in Switzerland

Payment of wages in Switzerland has a certain, strictly established procedure. First of all, it starts from such a basic concept as an annual salary paid in 13 separate lump sum payments.

Thus, the 13th salary is officially established in Swiss labor law.

Even if an employee has worked for less than a year, he still does not lose the right to the 13th salary, only its amount will be recalculated in accordance with the number of months during which he worked.

The employment contract is drawn up in the GAV form, which is a general trade union labor contract between the employer and the workers' union. This document establishes, in particular, the number of working days per month and the duration of one working day. Overtime work is paid at an increased rate based on a coefficient of 1.25.

In general, wages in Switzerland vary, and almost everything depends on the contract.

In the last 10 years, there has been a tendency for a slight increase in maximum wage levels with relative stability in minimum wages, which leads to an increase in social inequality in the hired labor market.

Standard of living and wages in Switzerland

Switzerland is one of the countries with a high standard of living and good wages. There is a stable economy here.

Based on statistics, it can be noted that wages in Switzerland are recognized as one of the highest in comparison with other countries in the world. Everything is not easy for the residents; each of them carefully works out the money given to them.

It is noteworthy that the concept of “minimum wage” is missing here. The indicator is established in the field of hotel management and catering. The likelihood of low-skilled workers appearing on the market is automatically reduced, bringing maximum benefit to the country.

Based on a referendum held in the state on this issue, it was decided to remove the minimum wage indicator. The reason for this is the possible change in the cost of services and goods by small enterprises. With the existing minimum payment rate, taxes in the amount of 4,000 francs were required.

For residents of Switzerland, everything is not easy; each of them carefully works out the money given to them.

The average salary in Switzerland is not immune to such concepts as fluctuations and changes in the economy. Indicators of average earnings in a state indicate the strengths and weaknesses of the economy, prospects for its development, problems, and so on. Men earn more than women, with an average difference of 25%. Considering the arithmetic average salary, we note the amount handed out to a resident of the country. It equals 6257 francs monthly.

Over the past 10 years, this figure has increased by 13.2%, which has a positive effect on the residents of the state. The issue of the size of wages paid is relevant; the figures vary greatly and directly depend on the cantons.

Current specialties are:

• banking, insurance sector - 52,000 francs;
• agriculture, automotive industry - up to 235,000 francs;
• construction, hotel business - up to 18,000 francs.

The difference in payments is significant, depending on the region of residence. Average salaries vary. Payments to workers in different specialties differ markedly; this can be easily tracked based on statistics.

Payments are made once a month. Traditionally, the 13th salary is accepted. If a new employee has worked for less than a year, he still receives a bonus payment. Residents do not consider this a bonus, bonus or encouragement.

Swiss salary payments, which involve good amounts, are guided by the central tax system. The federal structure of the state is quite complex, and the options for collecting taxes differ. Payments are collected by communes, enterprises, government agencies, and cantons.

Migrants residing permanently in the country, having the required level of income, but not working in Switzerland, can pay tax using a special fixed method. Any individual pays a maximum of 25% of his income as tax.

Working conditions

An employment agreement can be drawn up in any form. As a result, many Swiss companies use a form of general trade union labor agreement (Form GAV) - this document is an agreement between the employer (or their multi-employer structure) and the workers' union.

Such agreements help regulate working conditions:

• duration of the workday;
• duration of probationary periods;
• possible reasons for dismissal.

Influence of the regional factor

The formation of the rate is influenced by a certain region. What salary in Switzerland is determined by the cities. In Geneva, Bern, Basel and Zurich the rates are higher. Approximate salary – 10 thousand francs. In Thun, La Chaux-de-Fonds and Queniz the income is 6 thousand.

The minimum monthly salary in Switzerland for foreigners is 5.4 thousand francs.

Salary is based on hourly wages. The tariff is reflected in the contract. Social benefits and taxes are deducted from your salary. After this, the employee receives net income. The average employment rate in Zurich is 10.2 thousand.

Peculiarities of remuneration in Switzerland

Switzerland is a country with a stable economy and a high level of prosperity. There is no concept of minimum wage at the legislative level, so the rate is negotiated with the employer individually.

According to unofficial data, specialists of the highest category receive a salary of 2,800 francs, which is equal to € 2,450 or $ 2,900. Employees without qualifications have a minimum income of CHF 2,200 (€ 1,900 or $ 2,300).

In the ranking of average salaries in the world for 2021, Switzerland ranks 1st with a salary of $3,855. For comparison, Russia is in 69th place with $615, and Ukraine is in 125th with $168. The actual salary depends on profession, education, region of residence. Thus, Switzerland is considered one of the most promising countries with a very high standard of living and income.

Average salary in Switzerland

The average salary in Switzerland in 2021 is 6,428 francs before tax, which is $6,636 at the exchange rate. Women earn 11.5% less than men. The regional factor has a great influence on the formation of the rate. In Zurich, Geneva, Basel, Berne the rate is higher and is about 10 thousand francs net. In Thun, Könitz and La Chaux-de-Fonds, wages are at 6 thousand. The average rate for foreigners is CHF 5,460.

The average salary in Switzerland in 2021 is 6,428 francs before tax, which at the exchange rate is $6,636

Salary is based on hourly wages. The tariff is specified in the employment contract. The TC indicates the gross rate. Then, taxes from wages and social benefits are deducted, and the employee receives net income.

The average salary in Zurich is 10,235 Swiss francs per month, but the employee receives CHF 8,460. In Geneva, employees receive CHF 9,240, and taking into account taxes it comes out to CHF 7,750. Almost all prestigious and highly paid positions are occupied by the Swiss. It is extremely difficult for a foreigner to get this kind of work. The country uses hourly wages. The rate depends on the employee’s qualifications, level of education and profession.

Standard tariffs:

• employee without higher education, qualifications and work experience - CHF 18, $ 16;
• mid-level specialist with 4 years of experience or more - CHF 20, $ 17.5;
• a specialist of the highest category with an EFZ certificate and more than 3 years of experience in the profession - CHF 23, $ 19.5.

The salary for foreigners largely depends on qualifications. In Switzerland there is a category of invited foreign employees who receive more than the nationals of the country holding the same position.

Minimum wage level in Switzerland

The minimum wage (minimum wage) in Switzerland has not been officially established, but labor unions set an approximate amount by region

The minimum wage (minimum wage) is not officially established in Switzerland, but labor unions set an approximate amount by region.

The rate is based on the hourly rate, as well as weekly output. When concluding an agreement with an employer, the contact indicates the minimum salary for completing the assigned amount of work.

In the country, most companies operate on a 45-hour work week. All overtime is paid at 20% above the daily rate. The minimum salary in Switzerland in 2021 is around CHF 2,200, but a salary of this size is rare, even in the smallest regions of the country.

In Zurich the rate is CHF 2,900, in Geneva - CHF 2,700, in Basel - CHF 2,500, in Bern - CHF 2,350. In other cities it is not lower than CHF 2,000. The minimum salary range in Switzerland in 2021 was CHF 400, taking into account the qualifications of employees and the region of employment.

Minimum wage

In Switzerland there is no legal minimum wage (minimum wage). And this should be understood. This issue was repeatedly discussed in society, but the proposed bill on this issue was rejected by the referendum.

But, despite this, in the most prestigious industries, such as tourism, catering, hotel services, the minimum wage is still regulated on an exceptional basis. This measure is forced and is designed to limit the exploitation of immigrant labor, usually unskilled.

As for the really low salaries, they differ: a cleaner in a federal hospital, a cashier in a store, a bartender, a taxi driver ($3,100 - $3,500). Students also receive the minimum during their internship.

Swiss salary - specifics

When applying for a job, a citizen signs an employment agreement - it indicates only the amount of annual income. The latter is divided into 13 equal shares and issued monthly. The extra part is the 13th salary, which is quite familiar to Russians. Moreover, even if the employee quits in less than a year, it is still counted, but not in full, but in proportion to the length of service available at that place.

Also, by law, wages are recalculated when a person works overtime. A multiplying factor of 1.25 is applied here.

In general, in Switzerland in recent years there has been a trend characterized by an increase in the upper limits of salaries, while the minimum wages remain virtually unchanged. All this leads to an increase in the gap between social categories and generates a certain tension in society.

Average salaries

The Swiss Federal Statistical Office annually publishes and constantly updates data on the average salary for the country. For 2021 it is 6639 CHF per month.

According to statistics, salaries in Switzerland for men are slightly higher than for women.

The difference is approximately 14.3%. In Switzerland there is also a 13th salary. It is paid at the end of the year.

By profession

Salary by profession:

By region

Median wages in various regions of the state:

• Zurich - 12.5 thousand francs;
• Lake Geneva region - 10.5 thousand;
• central regions - 9.3 thousand;
• north-eastern regions – 10.5 thousand;
• eastern regions - 8.4 thousand.

In Switzerland, the average salary differs between men and women. Sometimes the difference reaches 25%.

Similar to other countries with a high standard of living, in this state the legislation limits the number of hours for work.

The maximum amount of working time is forty-five hours per week - if a person works in an office or belongs to the technical staff.

For other employees, the limit is 50 hours.

Salaries by profession in Switzerland

The Ministry of Labor and Employment (Zurich) regularly publishes a report that lists current salaries for almost all major occupations.

In 2021, the document shows average starting salaries (in the first year of work):

These salaries are at least 30-50% higher for experienced professionals. Salaries also increase as you progress in your career.

Which areas have the highest salaries?

The most in-demand professions are often the highest paid in Switzerland. The top vacancies in demand are doctors of all specialties, as well as nurses. The salary of a doctor in Switzerland leads in Europe in terms of salary, since the state invests large amounts of money in the healthcare budget. In addition to doctors, diplomats, programmers, top managers and bank employees have incomes exceeding CHF 10,000.

Special mention should be made of the translators. Switzerland has 4 official languages ​​- French, German, Italian and Romansh. One of them is common in every region, which makes the specialty of a translator relevant and in demand.

Average salary in Germany in 2021

The law does not set the average salary in Germany. It may vary depending on the basis for calculations: periods, sector size (enterprise, industry), level of education, coverage (city, region, land, country as a whole) and gender.

Currently, according to open statistics, the average salary in Germany before taxes is 3,771 euros per month or 45,252 euros per year. It is considered for the so-called secondary sector of the German economy, consisting of manufacturing, services and construction.

If we take into account the average monthly salary, it turns out that the average hourly wage is 23.57 euros.

Wages calculated without paying taxes are called gross wages. Accordingly, net wages are wages after deducting all taxes and social fees, what the employee receives “net” in his hands. If gross wages are taken as the base, then net wages will range from 59 to 67 percent. Accordingly, taxes and fees account for a share of 33 to 41 percent. The following factors influence the amount of taxes:

• Having a family.
• Number of minor children.
• Spouses have jobs.

Accordingly, if the average gross salary we calculated for the year in Germany is 45,252 euros, then the average net salary is 28,961.28 euros per year. Per month - 2413.44 euros.

Unlike the Federal Statistical Office, the German state Pension Fund provides different statistics. Its base is all insured persons in the German Pension Fund. The department submitted the following data:

• The average annual gross salary is 37,103 euros.
• The average annual net salary is 3091.92 euros.
• The average monthly gross salary is 23,745.92 euros.
• The average monthly net salary is 1978.83 euros.

Data on monthly net salary differs by almost 500 euros.

Features of taxation

Switzerland Switzerland has the highest taxes compared to other European countries. But local residents have a positive attitude towards this system, since the minimum income in the state is also higher.

The amount of deductions from wages is set based on average income per year. The percentage of tax withholding for foreign citizens and local residents is the same. The responsibility for calculating an individual's income tax lies with the employer.

Federal salary deductions (CHF per month) in 2020 remain:

• 0.77% – up to 31.6 thousand;
• 0.88% – up to 41.4 thousand;
• 2.64% – up to 55.2 thousand;
• 2.97% – up to 72.5 thousand;
• 5.94% – up to 78.1 thousand;
• 6.6% – up to 103.6 thousand;
• 8.8% – up to 134.6 thousand;
• 11% – up to 176 thousand.

The actual rate depends on the region of employment. In addition to federal taxes, municipal and cantonal taxes are also levied. Their percentage is set by the government and the employer.

How much do the Swiss pay in taxes?

The personal income tax system in Switzerland is progressive - those who earn little pay the minimum rates. The local equivalent of personal income tax is withheld by employers, so that ordinary people already receive a clean salary.

So, those who have no more:

• 31,600 per year - only 0.77 percent is transferred to the treasury;
• 41 400 – 0,88;
• 72 500 – 2,97;
• 103 600 – 6,6;
• 134 000 – 8,8;
• 176 000 – 11.

In addition, citizens also pay taxes to the budgets of cities and cantons.

Standard of living and expenses

Swiss families make mandatory payments. These include health insurance, taxes, payments to insurance funds. Such payments amount to 25-32% of income. On average, after deducting all payments, approximately 6.7 thousand remains. According to official statistics, the cost of living is 2.2 thousand. For a family with two adults and two children, the amount is 3.9 thousand.

The main consumer expenses include spending on electricity and housing. This is 14.8% of the budget. Then there are transport costs - this is 8.2% of income.

Approximately 6.4% goes to food. A trip to a restaurant costs 90 francs. In the resort area this figure increases by 30%. A lot of money is spent on buying meat. 5.7% is spent on entertainment. Shoes and clothing are 2.2%.

There is also a monthly contribution to the clinic. A resident of the country chooses a medical center and makes a transfer of approximately 300 francs.

Luxury is a rare phenomenon in the country. Restraint is shown in planning expenses.

Taxation

All residents and foreigners are subject to personal income tax. The tax is calculated taking into account the factors presented in the table. Payments are made by the employer.

Additional personal income tax is paid to the canton. There are also local deductions.

Income tax

The regional fee depends on where you live. The largest tax is levied in Geneva. The maximum is 19% (from annual income above 615,000 francs). In Zurich - 13% (from 255,000 francs). Foreigners working in the cantons and earning more than the established minimum (for example, in Geneva - 500,000 francs) are required to submit a declaration indicating the sources of income and foreign assets.