Despite trade conflicts and the 39-percent tariff on Swiss imports to the US, many companies in Switzerland expect to give their employees wage increases next year.
According to a survey by the KOF Economic Institute, companies in Switzerland are expecting an average nominal wage increase of 1.3 percent in 2026.
With the expected inflation rate of 0.5 percent, this would result in real wage growth (this is, salaries adjusted for inflation) of 0.8 percent.
However, the actual pay hikes will vary from one sector to another – as they usually do.
Where will increases be highest?
Wages will go up most significantly in the construction industry – by around 1.7 percent. This is due to the shortage of skilled employees in this sector, as well as a strong union representing these workers.
Employees in the hospitality, pharmaceutical, and financial sectors can also look forward to above-average wage increases.
However, the outlook is less positive in retail, wholesale, and manufacturing – where the increase is likely to be barely more than 1 percent.
On the other hand, export sectors such as watchmaking and mechanical engineering are particularly feeling the impact of the 39-percent tariffs on US-bound exports, so the wage situation there is not yet clear.
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Bonuses versus wage increases
KOF also pointed out that not all employees benefit equally from pay hikes.
That’s because Swiss companies are increasingly opting for individual bonuses instead of across-the-board salary raises.
READ ALSO: What you should know about Swiss salary bonuses
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And there is another development on the salary front…
Employees’ umbrella association Travailsuisse wants all workers in Switzerland to receive a 2-percent salary hike in 2026 to cover the rising living costs and make up for wage shortfalls of recent years.
In a press release published on August 19th, Travailsuisse argues that this raise is long overdue because real wages had fallen between 2021 and 2023 “to an extent unprecedented in the post-war period.”
Further, recurring costs like health insurance premiums rose between 5.4 and 8.1 percent between 2023 and 2025, and another increase of 4 percent is expected next year.
The goal of the higher pay is to maintain Swiss employees’ purchasing power, the organisation said.
