Tag Archives: Personal finance

A study done by the University of St. Gallen on behalf of the Swiss Employers’ Association published this week found there was practically no pay inequality between men and women in Switzerland, reported RTS. Photo by Pixabay on Pexels.comThe study looked at analysis done on 461 companies in Switzerland using a federal government framework. According to the results 99.3% of companies had respected laws on equal pay. The study covered around 500,000 salary earners in Switzerland....

Switzerland is one a few countries that taxes wealth, a tax borne by a relatively small percentage of the population, due partly to thresholds and allowances. Photo by Liviu Gorincioi on Pexels.comOn 18 June 2023, citizens in the canton of Geneva will vote on whether to boost the rate of wealth tax applied to assets above CHF 3 million over the next decade – an extra CHF 44 to 49 per 1,000 would be levied on wealth above CHF 3 million for 10 years. The idea dates from the pandemic when...

Switzerland’s ageing population is undermining the future financial health of its state pension system, a challenge facing much of the world. A number of Swiss politicians believe later retirement is the only way to meaningfully confront the issue. Andri Silberschmidt, a member of the PLR/FDP in Zurich, along with others, has launched an initiative to raise the retirement age by one year to 66 and index it to average life expectancy. This week, parliament discussed the plan. © Marekusz |...

On 9 June 2023, UBS closed a deal with the Swiss government to cover 9 billion francs of potential losses it could incur from its takeover of Credit Suisse Group, reported Bloomberg. © Hector Christiaen | Dreamstime.comThe guarantee relates to a specific portfolio of Credit Suisse’s assets currently valued at CHF 44 billion, equivalent to roughly 3% of the banks total assets. Under pressure from the Swiss government, the management of UBS Group broadly agreed to a deal to acquire...

Data published by the Federal Statistical Office on 5 June 2023 shows inflation was 0.3% over the month of May 2023, an annualised rate of 3.6%. Photo by Karolina Grabowska on Pexels.comThe 0.3% rise in prices in May follows zero inflation in April 2023. Across the 12 months up until the end of May, inflation was 2.3%, compared to 2.7% in April. However, the decline in annual rate hides the monthly uptick of 0.3%. The annual fall is due to the base effect. The monthly inflation rate was...

A 2.5% pay increase for Swiss parliamentarians to compensate for inflation was rejected this week by the Council of States, Switzerland’s upper house or senate, reported SRF. Bundeshaus – © Ocskay Mark | Dreamstime.comIn Switzerland, working as a member of parliament is a part time job, typically occupying 60% to 80% of an individual’s working hours. On average they are paid CHF 142,000 a year. This money covers pay and expenses. Expenses make up around 7% of the total. The rest is income...

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 rose from 1.25% to 1.50%. Higher rents are likely to follow. Photo by Mikhail Nilov on Pexels.comThe interest rate used to set the rent reference rate was the average rate on Swiss mortgage loans outstanding at 31 March 2023. The average rate this time...

Figures published by Switzerland’s Federal Statistical Office (FSO) on 26 May 2023 show continued growth in the number of jobs in Switzerland. Photo by fauxels on Pexels.comAt the end of the first quarter of 2023, total employment was 2.2% higher than a year earlier and 0.6% higher than at the end of 2022. Companies in Switzerland reported a total of 7,100 (+5.9%) more vacancies than a year earlier and the employment outlook indicator remained positive, said the FSO. The number of...

On 17 May 2023, Interpharma and Santésuisse published their annual report showing drug price comparisons across Europe. Photo by Pixabay on Pexels.comThe good news is the drug price gap between Switzerland and its neighbours has narrowed. The extra paid for on-patent drugs in Switzerland is now 5.4% on average. However, the price premium paid for generic (+45.5%) and biosimilar (+27.5%) off-patent drugs remains enormous – generic drugs are simple compounds where the composition is...

Last weekend, the PLR/FDP unveiled a plan to create a budget low cost health insurance option in Switzerland, reported RTS. Photo by Anna Shvets on Pexels.comThe proposal, which includes lower cost ways of delivering healthcare, will be presented to parliament next month. Examples of ways to lower costs include limiting the choice of hospital and sharing hospital rooms with more patients or in less luxurious surroundings. The plan is a response to rising health insurance premiums...