Read news from:
Austria
SHARE
COPY LINK
For members

MONEY

How much do you need to earn in Switzerland to be considered wealthy?

Switzerland is a wealthy country but how much do people need to earn to be considered rich in the country?

Published: 21 January 2023 11:15 CET
Updated: 16 December 2023 12:17 CET
How much do you need to earn in Switzerland to be considered wealthy?
1000 Swiss francs note, which was introduced in 2019. Photo by Michele LIMINA / AFP

In Switzerland, the amount of money one needs to make to be considered rich is different for every location.

The Institute for Swiss Economic Policy’s “Swiss Inequality Database” has calculated this number for each Swiss canton.

What exactly does it mean to be rich, and just how much money do you have to earn to be considered among Switzerland’s wealthiest breadwinners? While the desire for wealth and abundance is – to a degree – universal, its definition varies from place to place. This is particularly the case in a country as well off as Switzerland. Yet, there is clear data that shows when an individual is considered to be among the top earners for every canton.

Swiss national average

Households with an annual income of over CHF 97.591 (before taxes) belong to the wealthiest 20 percent in the country, however, it takes an impressive net salary of more than CHF 1.2 million to be among the country’s richest 0.1 percent. In contrast, after taxes, the latter will be left with around CHF 762,866 in their pockets.

French-speaking Switzerland

As with most things in Switzerland, just what income (before tax) makes one rich can vary significantly from canton to canton.

If you’re hoping to be among Romandy’s top earners, you’ll have the most challenging time accumulating wealth in Geneva where a staggering CHF 2.1 million is required to be considered among the canton’s 0.1 per cent uber rich. If you’re shooting for less, say the canton’s top 20 percent, you’ll only need to be earning a “modest” CHF 102,873 and to position yourself somewhere in the middle, at 5 percent, your salary would have to hit CHF 213,761.

Similarly, in Vaud, an income of around CHF 1,2 million will propel you among the 0.1 percent super rich, while a lesser CHF 192,842 and CHF 101,170, will mean you’re in canton’s top 5 and 20 percent earners.

Becoming rich is slightly more attainable in neighbouring Fribourg, and Neuchâtel where incomes of CHF 95,526, and CHF 86,805, respectively, place you within the top 20 percent of earners, and incomes of CHF 158,006 and 148,677 in the top 5 percent. In order to be considered among the cantons’ 0.1 percent, you’ll need an income of CHF 745,507 in Fribourg and CHF 930,015 in Neuchâtel.

Deutschschweiz

Leading the chart in German-speaking Switzerland is Zug where an income (before tax) of CHF 3,7 million will put you in the 0.1 percent of earners. In comparison, Zurich’s super rich average CHF 1,4 million per year. The gap is equally wide when it comes to the top 5 and 20 percent of the cantons’ wealthiest, with Zug’s averages standing at CHF 310,584 and CHF 133,048, while Zurich averages at CHF 205,822 and CHF 109,585.

In Basel-Country and Basel City, you will need to bring home CHF 106,284 and CHF 98,784 to be among the top 20 percent, while the top 0.1 percent make around CHF 1.1 million and 1.8 million. The two Basels highest 5 percent earners bag around CHF 185,288 (Country) and CHF 194,727 (City).

Things look a little brighter in Bern and Aargau with the former’s 0.1 percent income standing at a lesser CHF 730,312. Bern’s chief 5 percent earn CHF 144,412 and its 20 per cent average at CHF 89,150.

The situation is similar in Aargau with its richest earners bringing in some CHF 730,312. The top 20 percent of Aargauers have a salary of around CHF 707,342, with the 5 percent bringing home around CHF 165,682.

Member comments

  1. Would it really be so hard to occasionally include Ticino/Italian speaking Switzerland in your reporting? As a subscriber it is quite annoying.

Log in here to leave a comment.
Become a Member to leave a comment.
For members

MONEY

Is it better for consumers in Switzerland if the Swiss franc is strong or weak?

Although Switzerland’s currency has weakened slightly against the euro in recent weeks, it remains strong. Is it good or bad news for consumers?

Published: 22 April 2024 15:42 CEST
Is it better for consumers in Switzerland if the Swiss franc is strong or weak?

Generally speaking, when a country’s currency is strong — as the franc is right now  against both the euro and dollar — consumers benefit on several fronts.

The main reason is that they will get more bang out of their francs, especially in these situations:

Imported goods

Since the exchange rates between the Swiss and foreign currencies are in franc’s favour, any merchandise that comes from abroad will, in principle, be cheaper.

If you go shopping in a supermarket and find, for instance, that the price of Swiss eggs hasn’t budged (and certainly not downward), you will have more luck with eggs imported from Germany or France.

However, while you may see some savings when purchasing foreign goods, this may not be a huge amount.

The reason, according to Moneyland consumer platform, is that “Swiss importers are not obligated to pass on extra profits earned on exchange rates to customers – and many of them don’t reduce prices at all.” 

Cross-border ‘shopping tourism’

Most products are cheaper — and sometimes by much — in other countries.

Even though inflation rates are higher abroad than they are in Switzerland, as is the Value-Added Tax, the franc’s power means it is still worth your while to buy your groceries in France, Italy, Germany, and other eurozone countries as well.

That, however, doesn’t mean that all products are cheaper abroad – it all depends on the specific goods and services in question.

For example, in general, electronics have lower price tags in Switzerland than in the EU countries.

READ ALSO: The one product that is cheaper in Switzerland 

Foreign vacations

With the franc stronger than the euro and US dollar, you can definitely benefit from travel abroad.

Whether just for a long weekend or full-scale holidays, you will be able to get more out of your money in many foreign countries, at least in terms of accommodations and food, than you would for the same amount of money in Switzerland.

Keep in mind, however, that the strong franc will not compensate for the cost of getting there and back, as the prices for airplane tickets, train travel, and petrol remain high.

All that is good, but is there a flipside as well?

The biggest ‘negative’ of the strong franc is that export-based companies suffer, because the goods they sell are too expensive abroad.

You may argue that this affects economy as a whole rather than individual consumers, and you’d be right — but only up to a point.

That’s because whatever happens in the economy at large will eventually trickle down to, and affect, the population, along with consumer confidence and spending habits.

SHOW COMMENTS