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COST OF LIVING

Geneva voters approve ‘world’s highest’ minimum wage

Geneva voters on Sunday came out in support of introducing a minimum wage, guaranteeing every worker in one of the world's priciest cities at least 23 francs ($25) an hour.

Geneva voters approve 'world's highest' minimum wage
Photo: FABRICE COFFRINI / AFP

Switzerland as a whole has no minimum wage, and voters in 2014 turned down a chance to adopt one at a national level.

Geneva voters themselves have twice previously rejected calls to introduce a minimum wage in the city.

But on Sunday the winds appeared to have changed as the coronavirus pandemic has deepened the wealth gap, with 58 percent of voters in the canton coming out in favour of the unions-backed initiative.

The result made Geneva the third of Switzerland's 26 cantons to set a minimum hourly earnings rate after Jura and Neuchatel.

READ: Swiss voters refuse immigration cuts, embrace paternity leave

The initiative, which had the support of all the left-leaning parties, had been presented as a remedy to poverty and precariousness, which have become increasingly visible in wealthy Geneva since the coronavirus crisis began.

Long lines of people waiting for handouts of food and other necessities have become a common sight in the city.

The unions behind the initiative argued that it was impossible in Geneva to live in dignity making less than 23 Swiss francs ($25, 21 euros) an hour, or 4,086 francs a month for a full-time 41-hour work week.

 

READ: Everything you need to know about minimum wage in Switzerland 

Rent for a typical two-bedroom apartment is at least 3,000 francs, and a coffee costs four or five francs. Geneva's minimum wage vote was just one of many national, regional and local issues on the ballot Sunday as part of Switzerland's famous direct democratic system.

At a national level, voters appeared poised to make history on another social issue by approving paternity leave for the first time in the country long renowned for its traditional approach to family models and gender roles.

That referendum to grant new fathers two weeks paid leave looked set to pass with nearly 57 percent of the vote at the national level, according to partial results, while full results in Geneva showed the canton backing the measure by over 79 percent.

Highest in the world

This is well above the current highest minimum wage in the world, which is Australia’s $19.84 per hour (CHF13.15). 

Over a 40-hour work week, this adds up to 4,100 francs per month. The average wage in Switzerland is currently CHF6,500. 

A cantonal vote on implementing a minimum wage was knocked back by 54 percent of the electorate in 2011, while a similar vote at the federal level was rejected by 66 percent of the electorate in 2014. 

According to Swiss news outlet Le Temps, the coronavirus pandemic may play a key role in changing the outcome of the vote. 

Two Swiss cantons – Neuchâtel and Jura – have put in place minimums, while Ticino has recently approved a minimum via a referendum, but hasn't yet put it into law.

Basel will also go to the polls on a minimum wage of 23 francs, however a date for the vote has not been set. 

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COST OF LIVING

The Swiss websites that can help you save money

You may think that ‘lower prices’ and ‘Switzerland’ should never be mentioned in the same sentence. But online resources can actually help you save on some purchases.

The Swiss websites that can help you save money

True, getting ‘cheap’ stuff in one of the world’s most expensive countries is not a given. But it is not impossible either.

Depending on what you are looking to purchase, certain sites will either compare prices of goods available at various retailers, or show you where best deals are at the moment.

Let’s start with the most ‘essential’ purchase of all: food

There are no sites as such to tell you the current prices at all Swiss supermarkets, but you can do your research fairly easily.

Just look at websites of al major supermarkets — Migros, Coop, Aldi, Lidl, and Denner — and see which products are discounted on any given day or week.

The same applies to the two chains known to be on the more expensive side — Coop and Migros.

Their respective ‘budget’ lines, PrixGarantie and MBudget, are cheaper than their ‘regular’ assortment. 

And keep in mind too that sometimes best deals can be found in smaller grocery shops.

READ ALSO: Why it might be cheaper to avoid the big supermarkets in Switzerland 

Appliances, electronics, and sports equipment

To find the lowest prices in this category, two websites will be helpful: Preisergleich.ch and Toppreise.ch

According to Moneyland consumer platform, these two sites “compare the going prices at many major Swiss retailers. Comparisons primarily include online retailers, and retailers which have both online and offline stores.”

Insurance

Before you take out any policy, whether the obligatory health (KVG / LaMal) or car insurance, or supplemental plans, you can compare their prices versus what coverage they offer.

Though the cost the basic KVG / LaMal is the same for everyone in your canton, (based on your age and co-pay deductible you choose), complimentary policies are priced differently, depending on what services they cover.

You can compare them on Bonus.ch, or FinanceScout24

Internet and mobile plans

You can compare Internet plans which are available at your exact address, and the Internet speeds you can actually get, as well as mobile plans on Bonus.ch  and Dschungelkompass.ch

Hotels

If you are going on holiday or just away for a weekend, the price of a hotel room in Switzerland, especially in popular tourist destinations, can cost quite a lot.

While you may not necessarily find a really cheap room in a decent hotel (or location), these sites will let you see what’s available, where, and at what price:

Switzerland Tourism 
Ebookers.ch 

Overall, there are two Swiss sites that offer price comparison on almost all services in Switzerland.

They are Comparis and Moneyland.

And also…

If you sign up at rabattcorner.ch, you will get discounts thanks to cashback and vouchers in more than 798 online stores, including Manor and MediaMarkt. You can also benefit from travel discount on SWISS airline, and other travel, leisure, and gastronomy options.

READ ALSO: Six essential tips that will save you money in Switzerland

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