Categorized | Economy, Salaries

Swiss Salaries Rise Further

Posted on 02 November 2007 by Sprecher

According to UBS, Swiss companies in 2008 will post the largest rise in salaries in over ten years.

Nominal salaries are set to rise substantially, according to their study of the Swiss economy. The number one Swiss bank’s economists are anticipating an inflation rate of 1%, and claim that salaries will rise close to 2.5%, thus roughly 1.5% over inflation.

The rise is higher than that in 2007. Employees this year benefited from a real rise in salaries of roughly 1.3% (after discounting cost-of-living increases).

The UBS studies are made across 19 economic sectors and the conclusions were made public yesterday.

The strong progression in salaries was expected in the pharmaceutical sector and chemical industry (2.8%), as well as in the cantonal administrations and construction industry (2.7%).

The I.T. sectors, Metals, and Machine Tools posted rises of 2.6%.

Companies in the Energy sector, as well as insurances, telecommunications, and the banking sector are betting on a growth of at least 2.5%.

The textile industry, medias, printing, and the graphic arts sector is expected to experience growth in salaries of 1.8% and thus expected to post the most modest increases.

These data do not include bonus systems in place in the many of the sectors. 75% of the large companies surveyed have such a bonus systems in place. This means the rise in compensation is likely higher than the stated figures.

The general business climate remains very optimistic: 49% of the companies surveyed are intending to hire staff shortly, while only 15% are forecasting reductions in personnel.

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