Tag Archives: Personal finance

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...