Tag Archives: Editor’s Choice

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...

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...

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...

In March 2024, 58% of voters voted in favour of paying an additional 13th month of state pension. That triggered a fierce debate on how to fund it. This week, Switzerland’s Federal Council said it planned to fund the increase with higher VAT with no rise in salary taxes. Photo by Centre for Ageing Better on Pexels.comThe news was delivered by Elisabeth Baume-Schneide, Switzerland’s minister of internal affairs, a role that covers pensions. The Federal Council’s argument for funding higher...

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...