Tag Archives: Personal finance

Data published this week by Switzerland’s Federal Statistical Office (FSO) showed a small slowdown in annual inflation. Photo by Sam Lion on Pexels.comThe consumer price index (CPI) increased by 0.2% in March 2023 compared with the previous month, and +2.9% compared with the same month of the previous year. This compares to an annual rate of 3.4% at the end of February 2023. The slowdown in price rises was mainly due to falling energy, some holiday accommodation and specific food...

As expected, this week, Switzerland’s left leaning political parties and unions announced the launch of a vote to strike down the work related pension reform plan accepted by the government last week, reported RTS. Photo by cottonbro studio on Pexels.comThe government plan, which reflects the challenging mathematics of funding pensions at their current level in the face of an ageing population, essentially requires most workers to pay more and receive less. It also forces some that...

In Switzerland, basic welfare payments are only paid once an individual has spent almost all of their wealth supporting themselves. These requirements apply to everyone but are typically irrelevant for most refugees, who arrive in Switzerland with next to nothing. However, many arriving from Ukraine, a lower-middle income country, have wealth exceeding the limit, most visibly displayed in the vehicles some drive. Luxury cars in particular have raised eyebrows, although it cannot be assumed...

The rapidly agreed plan hatched behind closed doors last weekend to merge Switzerland’s two largest banks has sparked widespread anger across Switzerland. A poll published this week showed that 66% of Swiss surveyed were either very (37%) or fairly (29%) angry about the merger, reported RTS. © Alan Gignoux | Dreamstime.comLate last week, a crisis in investor confidence in Credit Suisse Group gave way to the beginnings of a bank run. To restore calm, a merger of Credit Suisse and UBS was...

On 22 March 2023, the Federal Tribunal, Switzerland’s highest court, decided that Uber drivers are employees and the companies that employ them must deduct and pay social security taxes, according to a press release. The decision concerns drivers for UberX, UberBlack, UberVan and UberPop working for Uber B.V. and Rasier Operations B.V. and the money paid to them in 2014. Photo by Airam Dato-on on Pexels.comIn 2019, Zurich’s compensation fund decided drivers working for Uber Switzerland...

On 23 March 2023, the Swiss National Bank (SNB) lifted its policy rate by 50 basis points (half a percent) to 1.50%. The SNB said that it was tightening its monetary policy further to counter the renewed increase ininflationary pressure. In addition it said that it could not rule out additional rises as part of its focus on ensuring price stability over the medium term. Inflation has risen again since the beginning of the year, and stood at 3.4% in February, above the range the SNB...

Married couples in Switzerland are taxed together on their combined income, something that is not applied to unmarried couples who are taxed individually. This often acts as a tax disincentive for one member of a married couple to work, disproportionately affecting women. Politicians and organisations focused on improving women’s career chances would like to see this combined taxing of income go, something the Federal Council has been working on. Photo by Emma Bauso on Pexels.comHowever,...

Switzerland’s much discussed work pension reform was accepted by parliament this week after a number of changes, reported Parlament.ch. Photo by Monica Silvestre on Pexels.comLike Switzerland state pension, compulsory work pensions are under strain as the population ages and people live longer. This week, Switzerland’s parliament voted 113 versus 69 in favour of a package of reforms. Key reforms include lowering annuity rates from 6.8% to 6% and transitionary top up payments, but only...

Buying has become much more expensive than renting in Switzerland, according to a report by the bank Credit Suisse. Photo by Curtis Adams on Pexels.comThe market for owner-occupied homes is currently undergoing a reversal of fortunes, triggered by the spike in mortgage interest rates in 2022, said the bank. Although owners enjoyed unprecedented low mortgage rates for a decade, rates have more than doubled over the past year. After 13 years, buying is more expensive than renting again....

Four times a year the rate of interest used to set the rents in Switzerland is reviewed. If the aggregate average mortgage rate goes down some renters can request lower rent. If it goes up some landlords can raise rents. This time the rate remained at 1.25%, however it was close to moving to 1.5%. Photo by Ketut Subiyanto on Pexels.comThe interest rate used to set the rent reference rate was the average rate on Swiss mortgage loans outstanding at 31 December 2022. The average rate this...