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We are not talking about fees. Who earns how much, and therefore belonging to this or that class, is a certain taboo in Switzerland. A new study by Bank Cler sheds light on this. It analyzes net income from 2007 to 2019. Is it net income? These are deductions such as wages, pensions, child support and capital income minus medical expenses or charitable contributions.
The study shows that those earning between CHF 37,000 and CHF 80,000 per household belong to the middle class. Those who earn less belong to the lower class. Households with a net income of more than 80,000 belong to the upper class. It is the household that is evaluated, not the persons. In the case of double winners, household income is money earned together. According to the bank, the figures for 2019 are currently the most current.
Stable income distribution
In the 13 years studied, there was almost no change in income distribution:
- 35 percent of the households belong to the lower class,
- 37 percent of the middle class,
- 28 percent of the upper class.
But there was a change, as Bank Cler CEO Samuel Meyer said: “The income threshold for the middle class has increased by more than 9 percent since 2007.” The reason: Revenues in Switzerland increased markedly between 2007 and 2019. That’s why the layers have changed. The median wage is used to distribute shifts. That is, one half earns a lot and the other half earns less. In 2019 it was CHF 53,600 per household. That’s 4,500 francs more than in 2007. According to the bank’s definition, anyone earning between 70 and 150 percent of the average wage falls into the middle class.
More millionaires
In 2019, 350,000 households in Switzerland had at least CHF 1 million. This is 63 percent more than in 2007. The cantons of Zug (14.2 percent of all households), Schwyz (13.4 percent) and Appenzell-Innerrhoden (11.6 percent) have the most millionaires.
The study was prepared by Bank Cler, a 100 percent subsidiary of Başler Kantonalbank, together with the economic research institute BAK Economy.
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.
