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Currently, payments between Swiss bank accounts are typically processed the following day. From 20 August 2024, Swiss banks will start to roll out instant payments within Switzerland, reported RTS. Photo by Andrea Piacquadio on Pexels.comThe new instant payment system will move money within 10 seconds and will operate around the clock seven days a week. In addition to speed, the payments will be cheaper than paying by card – cards typically charge merchants interchange fees, something...

This week, an error was found in the government’s calculation of the future hole in state pension funding. While the error, which overstates the shortfall by CHF 4 billion, is substantial, it does not change the trend, according to Stéphane Rossini, head of the Federal Statistical Office (FSO), reported RTS. Swiss Francs © Boris Bascarevic | Dreamstime.comThe CHF 4 billion error is highly embarrassing for the government, which has used the figures to argue in favour of pension reform,...

Switzerland’s health system is under strain. New drugs and treatments combined with an ageing population, along with cost inflation are the main drivers. This week, KPMG published a report quantifying the hole in Switzerland’s hospital finances. Photo by Anna Shvets on Pexels.comOnly 30% (14) of the 48 hospitals and clinics surveyed reported generating a profit. The other 70% were running at a loss. Extrapolating the results of this sample across all Swiss hospitals and clinics suggests a...

Under international pressure, Switzerland removed banking secrecy for foreign residents in 2009. However, laws ensuring bank secrecy for residents of Switzerland remain. Some politicians are now calling for the removal of all banking secrecy laws in the hope that it will increase tax revenue, reported RTS. © Denis Linine | Dreamstime.comWith Switzerland’s federal government budget in the red politicians are looking for ways to improve the bottom line. An estimated CHF 500 billion of...

Switzerland’s system of compulsory health insurance already requires patients to pay a portion of medical bills in addition to paying premiums. To stem the rise in premiums, an old idea has resurfaced: make patients pay an even greater share of their medical costs. Photo by Pavel Danilyuk on Pexels.comThis week, some political parties voiced support for a higher minimum deductible, an idea that has found limited support in the past, reported SRF. However, premiums have risen significantly...

The price of electricity is set to fall in 2025 according to a survey run by the Swiss Electricity Suppliers Association, reported RTS. Photo by PhotoMIX Company on Pexels.comAs many as 75 out of 83 suppliers surveyed said they definitely or probably expect price cuts next year. Price data from 52 companies generating more than a third of Switzerland’s electricity show prices falling by between 8% to 10% on average. The expected price drop reflects falling electricity prices across...

On 22 September 2024, Swiss voters will decide whether or not to accept the latest round of government reforms to employee based pensions known as the second pillar pensions. Swiss trade unions are against the reform, which reduces the annuity rate from 6.8% to 6.0%. Instead they are calling for a higher rate to compensate for recent inflation. Photo by Mikhail Nilov on Pexels.comSwitzerland’s pension system faces a similar demographic challenge to many developed nations. Its population...

Data published by Switzerland’s State Secretariat for Economic Affairs (SECO) show a sharp rise in the number of people moving to Switzerland from EU/EFTA nations. Photo by Yan Krukau on Pexels.comIn 2023, 68,000 people arrived in Switzerland from EU/EFTA countries to live, the highest number since 2008 when 72,100 arrived. The 2023 figure is 29% higher than the number of people arriving in 2022. According to SECO, the rising number reflects Switzerland’s robust employment growth and...

Switzerland’s housing crisis is pushing low income earners into poverty, warned Caritas this week. Geneva © Boris Breytman | Dreamstime.comAccording to the charity, high rents are pushing some low income earners into poverty. An acute shortage of housing is pushing rents beyond the level that some people can afford, forcing them to cut back on spending in other areas, said the charity. Some are spending around a third of their income on rent and utilities, roughly double the average...

The number of babies born in Switzerland fell to 80,024 in 2023, a birth rate of 1.33 per woman, reported RTS. As recently as 2021, 89,644 babies entered the world in Switzerland. Between 2021 and 2023, the number has fallen nearly 11%. Photo by Pixabay on Pexels.comIn 2023, the fertility rate in Switzerland reached an historic low after trending down over the last decade. A doctor at a medical clinic in Geneva said a drop of around 20% over recent years can be observed across clinics in...