This is followed by high inflation, rising energy costs and now the health insurance premium shock. Although wages are also rising, Switzerland has less and less money to live on. Not enough, as the Swiss Trade Union Federation (SGB) found.
Increasing costs will put pressure on the wallets of people in the lower and middle income groups. And that includes more and more, as low-paying jobs are on the rise again.
Bonuses last straw
The problem will likely worsen next year: health insurance premiums will increase by an average of 6.6 percent. A normal family with two children will therefore pay health insurance premiums of more than 1000 francs per month for the first time in 2023. That’s why SGB is asking for an increase in premium reductions. Rents are rising, along with premiums and energy prices.
The SGB therefore demands that no one earn less than 4,500 francs per month. Anyone who completes an apprenticeship must receive at least 5,000 francs per month. It also requires inflation adjustment and real wage increases.
The minimum wage in Switzerland is currently around CHF 4,000. However, this situation varies greatly from sector to sector.
Wages rise less than inflation
According to a UBS survey, wages will increase by an average of 2.2 percent in 2023. The Swiss Employers’ Association finds this pay increase to be “respectable” against the backdrop of the challenges companies face, such as delivery bottlenecks and rising costs.
Even the SGB is only partially satisfied with the drop in wages: the unions have so far achieved a significant part of their 2022/23 wages targets. Until now, most wage agreements have included inflation adjustments and, in some cases, a real wage increase.
However, wages are rising less than inflation. This should be over three percent at the start of the year. Purchasing power continues to decline.
Purchasing power has already dropped this year. According to the employers association, workers have benefited from negative inflation and higher real wages in recent years.
Milena Bold
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
