Most people in Switzerland rent. This means the nation has strict tenancy rules, some of which are viewed as too strict by the current government. Both parliament and the Council of States have come up with two changes aimed at limiting the actions of tenants, which are considered abusive.

Photo by Peter Lengacher on Pexels.comThese two votes are the result of objections to government plans rather than popular initiatives. After a plan is agreed by the government, if the public can gather 50,000 signatures, a vote aimed at rejecting the plan can be launched.

Under current rules tenants are permitted to temporarily sublet their homes or individual rooms. This right also applies to business premises. Tenants are not currently required to inform landlords and to obtain written

Switzerland came second in this year’s World Digital Competitive Ranking, which ranks 67 nations across the world.

Photo by Tima Miroshnichenko on Pexels.comThe 2024 World Digital Competitiveness Ranking, produced annually by IMD, placed Singapore at the top, followed by Switzerland and Denmark.

This year’s ranking is the highest for Switzerland over the eight years that the report has been published.

Switzerland progressed significantly in high-tech exports (9th), e-participation (up 11 places to 27th), and cyber security (11th). Its key strengths are intellectual property rights, international experience, communications technology, knowledge transfer, and drawing highly skilled foreign personnel. In 2023, Switzerland was ranked fifth. 

Switzerland typically leads the world

In 2025, many wage earners will see their pay rise. However, the increases may not be sufficient to cover the rising costs, rising health insurance premiums in particular.

Who will receive more pay next year? Migros and Coop, Switzerland’s two largest private employers have announced pay increases of 1% to 1.3%, reported SRF. Denner, which is part of the Migros group, has said it will boost pay by 1.1% next year. Airline Swiss, another large employer, has announced a 2% pay boost. Other pay hikes have yet to be announced or negotiated. Swiss Rail remains in pay negotiations.

Based on a wage survey run by bank UBS in November 2024, wages are expected to rise on average by 1.4% next year. Another survey run by Switzerland’s Federal Institute of Economic Research (KOF) estimates a 1.6%

Switzerland’s pension system has three elements. The first is a state pension linked to the number of years worked. This is funded by a tax. The second is a salary based scheme funded by salary deductions, and the third is an optional element known as the third pillar. Contributions to all of these are tax deductible, providing an economic incentive to pay into them. This week, the Federal Council announced a change to third pillar contributions, reported SRF.

© Gfadel | Dreamstime.comThe change allows missed payments to be made in later years, which means less of the tax sheltering benefit of these payments is lost if a payment is missed.

From 2025, anyone who has not paid the maximum amount, which is currently CHF 7,056 per year, into the third pillar pension in previous years

Data published this week by the Federal Statistical Office (FSO) shows that residential housing has risen in price by 18% since 2019. In the most recent quarter (Q3 2024) it rose 0.7%.

Photo by maxxup on Pexels.comWith prices rising by 19%, stand alone houses have risen by more than apartments (+17.4%) over the same period. With the exception of Q1 2020, Q1 2021, Q1 2022, Q1 2023 and Q1 2024, the price of individual homes has risen every quarter since Q4 2019.

The greatest price increases were seen in the usual hotspots around Zurich, Basel and Lake Geneva – the chart below shows Q3 2024 price increases by municipality – click here for direct access to chart.

In many places around Zurich, Basel and Lake Geneva prices are up 1.5% in Q3 2025. In most rural municipalities, prices

At the beginning of the Covid pandemic there was talk of closing Switzerland’s borders. However, it was clear that Swiss hospitals and businesses near Switzerland’s borders would not function without the workers who cross the border daily to work for them, and the notion was dropped. Statistics published this week by the Federal Statistical Office (FSO) show the number of cross-border workers at record levels.

© Krasnevsky | Dreamstime.comAt the end of September 2024, around 403,000 people residing in France, Germany, Italy and further afield crossed into Switzerland to work. This figure is 2.4% higher than at the the same point in 2023. The total number has grown by 19% in the five years since 2019 when the figure was 339,000.

57% of cross-border workers were resident in France,

The Swiss National Bank (SNB) has started the process of issuing a new series of banknotes by launching a design competition, it announced this week.

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The new banknotes will not be issued until the early 2030s at the earliest, said the bank. The new series will be dedicated to the unique topography of Switzerland and will be launched under the theme “Switzerland and its high altitudes”.

The 10-franc note will reflect Switzerland’s lowland plateau, the 20-franc note the Mittelland, the 50-franc note the Jura, the 100-franc note the foothills of the Alps, the 200-franc note the mountains, and the 1,000-franc note the high mountains.

Any designer working in Switzerland may apply to take part in design submission. The competition, for which twelve designers will

Pending new legislation means widows and widowers will soon receive a pension only until the youngest child reaches the age of 25. Currently, widows, but not widowers, receive a pension for life. For widowers the payments currently stop when the youngest child turns 18. This week, the Federal Council sent instructions to parliament to enact the reform, reported RTS.

Photo by RDNE Stock project on Pexels.comThe change has partly been driven by the need to find savings to balance government budgets. It also responds to the gender discrimination inherent in the current system, which favours women. The discrimination in the current system was brought to political attention by a widower who won a discrimination case at the European Court of Human Rights in October 2022.

Others have also

This week, Switzerland’s federal government said it expects to run a deficit of CHF 900 million in 2024, a figure significantly below the original forecasted deficit of CHF 2.6 billion.

Bern © Sean Pavone | Dreamstime.comThe original figure has now dropped twice, once in June by CHF 1 billion and now by a further CHF 0.7 billion to CHF 0.9 billion.

The recent forecast reduction is driven by higher receipts (+0.4 billion), mainly from investment activities, and lower spending (-0.3 billion), driven by some areas of government spending coming in lower than budgeted.

The forecast includes net figures after ordinary spending (+0.2 billion) and after additional extraordinary spending (-0.9 billion).

The net result after ordinary spending now falls well within what is allowed

In 1962, Switzerland introduced a law that required underground bomb shelter space be constructed for all residents. Since then shelters have been built into houses and communal spaces have been built by municipalities for those living in a building without one. This week, the federal government announced plans to increase spending to renew and maintain the nation’s stock of bomb shelters, reported SRF.

Bomb Shelter © Petrarichli | Dreamstime.comThe 1962 law, which was born from the threat of nuclear warfare during the cold war, requires one square metre of shelter space per person. Those who build a new house without a bomb shelter must contribute to the cost of spaces in a communal facility.

The bomb shelter rules, which exist only in Switzerland, have made the nation an

A study published this week found that nearly 1 in 20 (4.8%) people under 18 in Switzerland received social welfare in 2022, reported RTS. Children made up 33% of the total population on welfare. The report called for more money to ensure this group is sufficiently supported.

Photo by SRIPADA STUDIOS on Pexels.comThe 76,000 children in Switzerland receiving social assistance often live restricted lives. There is a need for action regarding the level and design of social assistance benefits, said the authors. This group is often disadvantaged regarding social integration and access to school support services, for example access to music and sporting activities. This impacts on their ability to get a level of education that could help them escape poverty.

Children from poor families

From 2025, the tax free allowance for goods imported into Switzerland will fall from CHF 300 per person to CHF 150, decided the Federal Council this week. While some, such as Swiss retailers are happy with the change, many consumers and consumer associations are not.

Photo by Waldemar on Pexels.comPoliticians in St. Gallen and Thurgau, two cantons bordering on Germany, have long campaigned for the complete abolition of the tax-free limit. They have even held votes on the subject. Walter Schönholzer, an elected official in Thurgau, told SRF that he thought the change was a step in the right direction, but not enough. For him, a CHF 50 limit would be the highest he would deem acceptable, but he would prefer zero.

Others disagree with this position. Switzerland is well known for high

On Wednesday, farmers came together in Bern to protest against planned cuts to subsidies, reported RTS.

Photo by Sergio Zhukov on Pexels.comBecause of the way farming is structured in Switzerland, farmers are heavily reliant on the support of tax payers to make ends meet.

The federal government, which is running and projecting fiscal deficits, has come up with ways to cut spending. According to the government, the cuts are spread across the board, which includes savings on the amounts it spends supporting farmers. The government plans to cut several hundreds of million francs from farm subsidies from 2025 to 2029.

However, the Swiss Farmers’ Union and other groups representing farmers argue that the agricultural sector is not responsible for the fiscal deficits and should

Consumer prices at the end of September 2024 were only 0.8% higher than the were at the end of September 2023, reported Switzerland’s Federal Statistical Office (FSO) this week. This is the lowest annual rate of inflation since July 2021.

Photo by Connecting Flights Guide on Pexels.comConsumer Price Inflation (CPI) dropped by 0.3% during the month of September 2024. The recent monthly decline was driven by the falling price of international travel, both in terms of airfares and hotel expenses. In addition, the prices of petrol, diesel and heating oil fell. These declines exceeded rising fruit and berry prices, the main source of inflation.

Across 12 months, the price of imported goods, which have benefited from the strength of the Swiss franc, have declined in price by 2.7%. Over

This week, two PLR/FDP parliamentarians proposed increasing the price of the motorway vignette required to drive on the Swiss motorway network, reported SRF.

© Stefano Ember | Dreamstime.comThe two politicians making the proposal are from the cantons of Schwytz and Ticino, two cantons affected by the heavy traffic passing through the Gotthard tunnel, one of the key north-south connections through the Alps. The proposed higher vignette cost is aimed at deterring foreign road users from choosing Swiss roads to connect with Italy.

Heinz Theiler says the Swiss motorway vignette at CHF 40 is far too cheap. Swiss transport infrastructure was financed by taxpayers to generate economic income, not cheap transit for European tourists in cars.

The motion submitted to the National Council,

This week, Elisabeth Baume-Schneider, Switzerland’s Health Minister, announced health insurance premiums will rise by an average of 6% in 2025 to CHF 378.70 a month. However, the range of the increase varies from 1.5% to 10.5% depending on the canton of residence.

© Alexlmx | Dreamstime.comAccording the minister, the increase is driven by rising health care costs and inflation. Another driver is the changing age structure of Switzerland’s population. Older people require significantly more care than younger people, who make up a shrinking percentage of the population. New drugs and treatments are also adding to the cost.

The government has been trying to implement cost saving measures for many years with little to show for it. According to Baume-Schneider, a proposal for uniform

On 26 September 2024, The Swiss National Bank (SNB) announced further eased its monetary policy by lowering its key rate for the third time in a row by 0.25% to 1%.

SNB Bern © SNBThe SNB started cutting its key rate before the European Central Bank (ECB) and the US Federal Reserve (Fed). It first cut the rate in March 2024 from 1.75% to 1.50%, then again in June 2024 to 1.25%, and then this week to 1.00%. The Fed made its first cut in September 2024 from 5.25% to 5.00%. While the ECB cut for the first time in June 2024 from 4.00% to 3.75%, following with a further cut to 3.5% in September 2024.

Inflationary pressure in Switzerland has fallen significantly of the recent quarter, something driven largely by a strong franc and falling oil and electricity prices, according to the bank.

On 22 September 2024, the Swiss will vote on two popular initiatives. The first is the biodiversity initiative “For the future of our nature and our landscape”. The second is on a plan to reform Switzerland’s occupational pension system.

Photo by Andrea Piacquadio on Pexels.comReform of Switzerland’s pension system is an increasingly pressing issue given the predictable demographic shift underway.

Occupational pensions (2nd pillar) are pots of money built up from salary deductions. Eventually, when workers retire, the pension sum is used to pay a regular amount based on the total in the former employee’s account. These regular pension payments are known as annuities. The problem is that the current annuity rate is based on shorter life expectancy and higher interest rates. With

This week, Switzerland’s parliament voted in favour of spending an extra CHF 4 billion on the nation’s military, bringing annual military expenditure to 1% of GDP earlier than planned, reported RTS. The extra CHF 4 billion will bring the total budget to CHF 30 million spread across the period from 2025 to 2028.

Data published this week by Switzerland’s Federal Statistical Office (FSO) show a decline in the number of vacant homes, both to buy and rent in Switzerland.

Photo by Ksenia Chernaya on Pexels.comOn 1 June 2024, there were 51,974 empty homes in Switzerland, representing 1.08% of the country’s total housing stock. The number was down by 2,791 (-5.1%) compared to the number a year earlier.

The drop in vacant homes follows three years of declines. In 2020, there were 78,832 vacant homes across the country, 52% more than there were in June 2024. In 2020, the vacancy rate was 1.72%. The last time the rate was as low as 2024 (1.08%) was in 2014 when it was 1.07%.

The cantons of Zug (0.39%), Obwalden (0.44%) and Geneva (0.46%) had the lowest vacancy rates in 2024. Cantons with the

A survey report published this week shows that the population of Switzerland increasingly sees immigration as a challenge and desires political action.

© Alexander Sorokopud | Dreamstime.comOverall, while the economic and cultural effects of immigration are viewed positively, the strains on infrastructure, housing and the environment are viewed negatively. In addition, negativity towards immigration is showing among groups that were once friendly to immigration, said the authors.

Switzerland’s population would like more open discussion about the challenges and potential solutions to the rising influx of people. The population is broadly torn between the desire to limit immigration and the strains it places on the system, and the support it provides to economic growth by supplying

This week, Swiss Rail published its half-year results. During the first six months of 2024, the company made a profit of CHF 50.8 million, a level far below what is required for it to operate comfortably and service its debt.

Swiss Rail © Sergiomonti | Dreamstime.comAs a rule of thumb, to remain in good financial shape the company needs to make a profit CHF 500 million annually, which would mean CHF 250 million over six months, roughly five times the recent six month result.

The main areas of difficulty faced by the rail operator are the poor performance of its freight division and the high costs of maintaining regional networks.

Freight transport recorded a loss of CHF -42.6 million, significantly below the CHF -18.0 million recorded durning the first six months of 2023. A

Switzerland’s federal government is spending more money than it collects in taxes. This week, a federal commission set out options for spending cuts, reported SRF. The problem is than some of them would involve less federal money going to cantonal governments.

Bern © Victor Torres | Dreamstime.comSwitzerland’s Finance Minister Karin Keller-Sutter hopes to break the deadlock around balancing the federal budget. To do so, she has called on a group of experts for advice.

This week, a group led by Serge Gaillard, a former trade unionist and director of the federal financial administration presented its suggestions. According to the group, taking on more debt is out of the question and something that was not looked at in any detail. It advises instead to focus primarily on cutting

Since 1990, the cost of travel by car has risen 24%, while travel by public transport has leapt by more than 100%, reported SRF.

© Hai Huy Ton That | Dreamstime.comSince 1990, fuel prices and car prices have fallen, while the cost of tickets to ride public transport have consistently risen.

According to Stefan Meierhans, Switzerland’s chief price watchdog, the rising cost gap is creating the wrong incentives. Why take a train when a car is cheaper?

Another challenge is the way the cost falls on the user. Once someone has decided to buy a car and has insured it, the marginal cost of driving it is fuel. Train travel, by comparison, has a high marginal cost, unless you buy an all-you-can eat pass. However, most don’t use the network enough or travel far enough to warrant buying one

Electricity prices will fall across most of Switzerland next year. The average price drop across the country will be around 10%. However, the drop will vary by location and prices will rise in a few regions, reported RTS.

Electricity Meter © Fluffthecat | Dreamstime.comIn some places the price will drop by more than 20%. In a few it will rise by more than 30%.

The 10% average price drop follows hikes of 27% in 2023 and 18% in 2024, a total jump of around 50%. Average savings in 2025 for a household consuming 4,500 kWh a year should amount to around CHF 140.

How expensive is electricity in Switzerland?

It depends. Prices in 2025 will range from 9.05 cents per kWh to 45.85 cents. So while one lucky household will spend around CHF 400 next year on electricity, another less

Last week, the government in Bern broadly supported a plan to force all property owners to contribute to the cost of earthquake repair. This week, a Swiss homeowners association rejected the idea, reported SRF.

Earthquake © Olga Demina | Dreamstime.comThe government plan is a response to the attitude of many home owners towards insurance. Only 15% of buildings are insured against earthquakes in Switzerland, a nation at risk, according to a government estimate. If some homeowners won’t step up and pay for earthquake insurance then they should all be forced to pay when an earthquake hits whether their building is damaged or not, is the logic. Some politicians view the scheme as innovative. There are no premiums but instead a (big) bill when an earthquake hits – 0.7% of a property’s

This week, Switzerland’s federal government announced future increases to state pensions, disability benefits and family support benefits, reported RTS.

© Swisshippo | Dreamstime.comThe 2.9% increase is the first adjustment since 2009. It means monthly pension and disability payments will rise on 1 January 2025 by between CHF 35 and CHF 70, depending on the level of salary based contributions.

Family support benefits will rise by CHF 15 a month for young children and by CHF 18 a month for older children in education.

The increases might not seem significant. However, their annual funding cost will be around CHF 1.9 billion. Roughly 80% of the rise will be paid for out of the fund funded by payroll taxes. The remaining amount will be covered out of federal taxes.

More on

Over time, salaries increase with inflation. However, if tax deductions and allowances are not adjusted the percentage of income taken in tax rises, a phenomenon known as tax creep or fiscal drag. Given recent inflation, Switzerland’s federal government announced this week that it was increasing allowances and deductions, reported SRF.

Photo by Pixabay on Pexels.comFrom 2025, the child and support allowances will rise from CHF 6,700 to CHF 6,800. And married couples will start paying federal taxes when their combined annual income reaches CHF 29,700 instead of the current level of CHF 29,300. Those investing in career training will be able to deduct up to CHF 13,000, CHF 100 more than today.

The sums are small, but the government is at least sending a signal that it is concerned

Switzerland sometimes feels like the land of insurance. Numerous costs that are covered by taxes in many places come instead in the form of compulsory insurance in Switzerland. However, some risks remain uncovered by compulsory insurance. Earthquakes are one such risk. This week, a plan to force all property owners to contribute to the cost of earthquake repair received broad support in Bern.

© GoranJakus | Dreamstime.comOver the years, Switzerland’s federal government has tried and failed to introduce some kind of country-wide earthquake insurance. Switzerland has fault lines running through it and is at risk of earthquakes. Many other risks to real estate are well covered. Some cantons make insurance for weather and fire damage compulsory. And while earthquake insurance is available

Switzerland’s economy grew slightly more than expected in the second quarter of 2024, reported SRF.

Photo by ThisIsEngineering on Pexels.comBetween April and June 2024, Gross domestic product (GDP) rose by 0.5%. A survey of economists had expected growth for the quarter to be between 0.2% and 0.4%.

The biggest driver of growth during the quarter came from industry, which grew at a faster rate than the service economy.

Second quarter growth (+0.5%) outstripped growth in the first quarter of 2024 (+0.3%) by 0.2 percentage points.

The Q2 growth figures are not definitive. Switzerland’s State Secretariat for Economic Affairs (SECO) provides early flash estimates, which contain an element of forecasting. More definitive data will be presented on 3 September 2024 and may differ from