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WORKING IN SWITZERLAND

Can a third-country national resident in the EU work in Switzerland?

Switzerland has strict rules about who is allowed to work in the country, but sometimes these regulations can be confusing to foreigners.

Can a third-country national resident in the EU work in Switzerland?
When it comes to employment, Switzerland and the EU have a special agreement. Photo: François WALSCHAERTS / AFP

If you are a foreign national living in Switzerland, you probably know who has and doesn’t have the right to be employed here.

As a general rule, Swiss employers are allowed to hire two groups of foreign workers without much administrative or bureaucratic hassles: citizens of European Union states, as well as those from EFTA countries — that is, from Norway, Iceland, and Liechtenstein.

These workers have an almost unlimited access to Switzerland’s employment market.

In fact, they don’t even need a permit if they work here for up to three months.

For a longer period, they must apply for — and usually get without much ado — a permit from the Swiss commune where they live.

Depending on the kind of employment contract they have, they will receive either a B or L permit.

READ ALSO: Residence permits: How EU and EFTA citizens can live, work and stay in Switzerland

What about people from outside the EU / EFTA?

Rules and procedures are more complicated for people from outside the EU, often known as ‘third-country nationals’.

Unlike people from the EU / EFTA states, who have a nearly limitless access to Switzerland’s labour market, those from outside Europe have more hurdles to overcome in terms of work permits.

The reason is that permits for this group of foreigners are subject to quotas and strict rules.

According to the State Secretariat for Migration (SEM), “admission of third-state nationals to the Swiss labour market is only granted if it is in the interests of Switzerland and the Swiss economy as a whole”.

This means that permits / visas will be granted only to highly skilled specialists who can’t be recruited from among Swiss or EU / EFTA workforce.

What happens if a third-country national lives in an EU or EFTA state? Can they be employed in Switzerland under the same rules?

The mere fact of living within the European Union, Norway, Iceland, or Liechtenstein, doesn’t give these people the right to work and reside in Switzerland on the same basis as their EU / EFTA counterparts.

They are still subject to quotas and the above-mentioned rules.

This right is reserved only for ‘citizens’ or ‘nationals’ of EU / EFTA countries, not everyone who happens to live there, according to SEM.

This is the case even if you have a residence permit for an EU / EFTA state — such a permit doesn’t extend to Switzerland.

What are the exceptions?

There are, however, two exceptions to this rule.

One is if a third-country national also has a citizenship from the EU / EFTA ; in other words, if a UK person is also a national of France, or a US citizen gets a Norwegian passport, then these people are no longer considered by Switzerland as third-country citizens, but rather as part of the big EU / EFTA family.

Another exemption would be a cross-border commuter (G permit holder) who is third country national, but holds a permanent residence permit in France, Germany, Italy, or Austria, and has been living in the border region of that country for at least six months.

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For members

WORKING IN SWITZERLAND

‘Foreign execs earn more’: What new figures reveal about Swiss wages

What is best known about salaries in Switzerland is that they are among the highest in the world. But new data shows even more details about how much the country’s population earns.

'Foreign execs earn more': What new figures reveal about Swiss wages

The information comes from a study released on Thursday by the Federal Statistical Office (FSO). 

These are some of the main highlights:

Median wage

In 2023, Switzerland’s median wage for full-time work was 84,500 francs (85,582 in euros) per year.

This is how it compares to European averages of other high-income countries, according to Eurostat data: 

Iceland’s median pay in 2023 was 53,885 euros (50,640 francs); Luxembourg’s 49,035 euros (46,082 francs), and Norway’s 45,798 euros (43,037 francs).

The gap is even wider when compared with Switzerland’s immediate neighbours: 38,457 euros (36,142 francs) in Austria; 38,086 (35,792 francs) in Germany; 38,481 euros (36, 163 francs) in France; and 23,207 euros (21,809 francs) in Italy — the latter falling under the EU average of 28,217 euros.

You may argue that Switzerland’s cost of living is quite a bit higher than in most other European nations, and it ‘eats up’ the high salaries.

But, according to the same Eurostat data, even when adjusting wages for purchasing power standards, Switzerland is still on top, even though the gap with other nations narrows.

“This figure underscores Switzerland’s strong economic position and high standard of living, substantially surpassing other nations in the region,” the Eurostat noted.

Let’s look at other FSO findings.

Foreign executives earn more than the Swiss

Foreigners in high managerial positions earned more than their Swiss counterparts, with a median salary of 130,000 francs per year compared to 129,100 francs for Swiss nationals.

The difference is even more marked among women: foreign male executives pocketed 117,000 francs, compared to 110,000 francs for Swiss women (read more about gender inequality below).

READ ALSO: Can a foreign resident in Switzerland earn more money than a Swiss co-worker? 

More money for part-time workers

According to the FSO figures, people whose employment rate is less than 90 percent are considered part-time. And they have recorded significantly larger salary hikes over the last three years.

For instance, in 2021, they earned a median wage of 41,300 francs a year, compared to 43,300 francs in 2023, which represents an increase of 4.6 percent.

As a comparison, wages for full-time employees increased by only 1.6 percent over the same period.

Women earn less than men, with a few exceptions

The wage gap between working women and men remained significant in 2023: 31.3 percent of men working full-time earned more than 104,000 francs, while this proportion was only 20.6 percent for women.

However, the exact opposite is true in the lower income groups: 10.9 percent of women working full-time earned less than 52,000 francs, while only 5.3 percent of men are among the low-wage earners.

The situation is different in certain professional groups: women working part-time in commercial or sales professions earn more than men; the average annual salary for women in those sectors was 42,900 francs, while men in the same industries earned an average of only 42,000 francs. 

In the sales and service sector, statistics show that women in part-time jobs earned 28,500 francs per year, compared to an average of 25,700 francs per year for men.

So ‘gender bias’ seems to be working both ways.

READ ALSO: What kind of pay raise can you expect in Switzerland next year? 

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