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WORKING IN SWITZERLAND

Reader question: Can I go on vacation while receiving Swiss unemployment benefits?

You may think that being out of a job and having lots of time on your hands is a good time to go on holidays. But are you allowed to do so in Switzerland?

Reader question: Can I go on vacation while receiving Swiss unemployment benefits?
This is definitely not where you should be if you draw unemployment benefits in Switzerland. Image by Lutz Dieckmann from Pixabay

It is a mistake to think that not having to go to work every day means you will have time for leisure and recreational activities, and can ‘sneak out’ for a little rest and relaxation without the authorities finding out you are gone.

Unemployment benefits in Switzerland are more generous than in many other countries, but they also come with strict rules attached, which don’t include vacation time.

In fact, being out of work in Switzerland is actually… hard work.

Rules and conditions

Once you start collecting unemployment benefits, you will have quite a few obligations you will need to comply with, such as; 

  • Showing up for all appointments with your unemployment counsellor
  • Sending out a certain number of job applications per month (and proving to the unemployment office that you have)
  • Attending continuing education courses 
  • Participating in programmes to improve your skills and your employability
  • Showing up for job interviews

If you fail to follow any of these rules (except if you are sick and can present a medical certificate), your benefits could be reduced.

Swiss ordinance on this matter states that “an unauthorised stay abroad will result in the denial of entitlement to benefits for the duration of the stay, even if the insured person is easily reachable and can return to Switzerland quickly to comply with an assignment.”

This does not exclude a weekend trip, but you do have to be present in Switzerland and, more specifically, at your home, during the week.

There, are, however, some (though rare) exceptions to those rules.

For example, the unemployment office will likely ‘excuse’ your absence if you have to leave the country temporarily  for imperative reasons — for instance, if there is death or serious illness in your family, or if you yourself require urgent medical treatment in a place other than your community.

Another exception would be if you have a job interview elsewhere than your place of residence and have to travel there.

None of these, scenarios, however, includes vacation breaks.

There is also another ‘way out’ of these rules.

If you have sufficient savings to live on while looking for a job on your own, without relying on the state unemployment scheme and having to comply with all its regulations, then you are of course free to do whatever you want with your time — including taking a vacation if your finances allow it.

READ ALSO: What you need to know if you’re unemployed in Switzerland

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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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