You may be entitled to more or fewer rights in Switzerland, depending on whether you have a B, C, or L permit. But does the permit also determine your salary level?
Of the three types of Swiss permits that resident foreign workers can obtain, C is obviously the best, as it grants its holders sweeping rights to employment and permanent residency.
B permits, issued for time periods ranging from one to five years, are the second-best in Switzerland’s permit hierarchy, with L coming in last, as it only entitles foreign nationals to stay in the country for a limited period of time, usually up to a year, and for a specific purpose, such as a short employment contract, for instance.
Do the permits determine how much your employer will pay you?
In other words, will you earn less money if you have a B permit than someone with a C permit — even if both of you have the same position within the company?
The answer to this question depends on many variables.
The main (if not the only) factor determining your pay is the requirement of the job you are hired for.
From the legal point of view, a company that engages foreign nationals must fullfil one key condition — it must give priority to Swiss and EU/EFTA (Norway, Iceland, and Liechtenstein) candidates over those from third states.
So, in theory and according to law, an employer will not base the pay scale on the type of work permit alone.
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This is how it really works
‘In theory’ is the key phrase here because in real life, different scenarios often play out.
Since personnel needs differ from one company to another, in practice B-permit holders sometimes earn more than those with C permits.
For instance, according to data released by the Federal Statistical Office (FSO), in middle and upper management, those with a B permit have highest salaries: they earn on average 12,791 francs a month.
Next are those with a C permit, who earn 11,495 francs a month.
(Interestingly, all of them have higher wages than the Swiss in comparable positions, who earn, on average, 10,476 francs a month).
These figures clearly indicate that wages are not based on the type of permit.
The only criteria are the qualifications needed for a given job, along with professional experience in a given field.
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There is likely also another reason why top managers with a B permit earn more than those who have a C permit
As The Local reported earlier in 2024, shortages are pushing some Swiss companies to recruit executives from abroad, specifically from the United States.
Since the US is a third country, its citizens face stricter entry requirements than their EU/EFTA counterparts.
However, if an employer is able to prove that no equally qualified candidate could be found among the Swiss and EU/EFTA workforce, Americans will be granted a B permit, take up the managerial position, and outperform (in terms of wages) C permit holders.
READ ALSO: Why Swiss employers are eager to hire US professionals
