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WORKING IN SWITZERLAND

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

If you are a foreign resident, you may be wondering whether you can earn more than a Swiss person working at a comparable job. Here's what you need to know.

Can a foreign resident in Switzerland earn more money than a Swiss co-worker?
Foreigners who work in upper management positions earn more than the Swiss. Photo: Pixabay

When a job becomes available in Switzerland, the employer has to give priority to Swiss nationals before looking at candidates from the European Union and EFTA states (Norway, Iceland, and Liechtenstein).

And then it’s only when no one from Switzerland or EU / EFTA steps forward, that companies can extend their search to people from so-called ‘third countries’. 

But that doesn’t mean that the employer has the right to pay the foreign worker less than they would pay a Swiss person. 

That’s because Switzerland’s labour law prohibits discrimination based on a person’s nationality, gender, religion, ethnicity, and sexual orientation.

Additionally, the Agreement on the Free Movement of Persons (AFMP), by which Switzerland is bound, stipulates that EU / EFTA citizens cannot be treated unfavourably, particularly in terms of salary, merely because of their nationality. Switzerland doesn’t have such treaties with third nations, but the non-discrimination clause applies to all foreigners.

Under what circumstances could foreign nationals earn higher wages than their Swiss counterparts?

There are several cases when this could — and does — happen.

If, for instance, a person from abroad is better qualified for a given job, has a higher level of education and seniority over their Swiss colleagues, then a higher pay would be justified.

In other words, it is not the nationality that determines the salary but what the employee can bring to the company. This means you have every chance of earning more than a Swiss employee, as long as you have the skills your company needs.

And this is not just a theory — data released by the Federal Statistical Office (FSO) indicates that in some instances, foreigners earn more than the Swiss. 

In what positions do foreigners make more money than the Swiss?

Again according to the FSO, foreign-born managers often earn more than the Swiss.

In middle and upper management, those with a B permit have highest salaries: they earn on average 12,791 francs a month, according to research.

Next are those with a C permit, who earn 11,495 francs a month. G permit holders — that is, cross-border workers — earn 10,707 francs.

All of them have higher wages than the Swiss in comparable positions, who earn, on average, 10,476 francs a month.

At the bottom of the scale are holders of short-term permit L, with a salary of ‘only’ 8,659 a month.

The same pattern (though with lower overall wages) can be seen among those working in lower management positions: here, C permit holders earn the most — 9,254 francs a month.

They are closely followed by B permits (9,251), with the Swiss in the third position (8,873).

Cross-border workers and L permit holders earn 8,650 and 5,940, respectively.

READ ALSO: In which jobs in Switzerland do foreign workers earn more than the Swiss? 

All this goes to prove that in certain positions that require specialised know-how, foreigners sometimes have an upper hand over the Swiss.

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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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