Swiss companies are planning only modest pay rises for 2027
Keystone-SDA
Wages in Switzerland are expected to rise only slightly next year, despite an improved economic outlook. Companies are planning average wage increases of 1% for 2027, down from 1.1% this year.
This is shown by the UBS Wage Survey, published on Tuesday, which covered just under 400 Swiss companies. With UBS forecasting inflation of 0.8%, this would leave real wage growth at just 0.2%. This is below the long-term average and also below the 0.4% increase in purchasing power expected for 2026.
Although business confidence has increased across all sectors, according to the study – particularly in industry – the outlook for the labour market remains subdued. The majority of firms expect the unemployment rate to remain unchanged and staff numbers to stagnate.
“Low inflation expectations and companies’ continued cautious approach to staffing suggest subdued wage growth,” says UBS economist Meret Mügeli. The economic recovery is only slowly filtering through to the labour market and wages, she said.
More
More
Swiss inflation at two-year high driven by oil and franc
Biggest pay rises at energy suppliers
The highest increases are planned in the energy supply and water and waste management sectors, at 1.5%. The chemicals and pharmaceuticals sectors, as well as the metals industry, are each planning a 1.2% rise.
At the lower end of the scale are the retail sector at 0.8% and the watch and jewellery sector at 0.7%. In most sectors, the planned increase is 1%.
UBS expects economic growth, adjusted for sporting events, of 1.5% for 2027. The bank also anticipates that the Swiss National Bank will raise the key interest rate to 0.25% in March and to 0.5% in June.
+ How we produce news in English
Translated from German, reviewed by an English Department journalist.
