Despite its wealth and generous welfare system, Switzerland has struggled recently to make meaningful progress in reducing poverty.
In 2023, some CHF 15bn in social transfers trimmed Switzerland’s underlying poverty rate from nearly a third of the population (31.7%) to 8.1%, according to the country’s first comprehensive national poverty study. That share has barely moved since 2017, hovering stubbornly between 8% and 9%.
The Federal Council notes that poverty rose between 2014 and 2017 before levelling off. During the pandemic, emergency support measures prevented a further deterioration. But Switzerland has still failed to meet its long-term objective of bringing poverty down.
The new monitoring report is intended as a reference work for future policy. It combines statistical analysis with personal testimonies from people affected by poverty and will form the basis of a national anti-poverty strategy due by 2027.
Who is most affected
Income poverty is concentrated among those not working, single-parent households, larger families, people living alone, the low-skilled, and foreign residents, refugees in particular. But the report stresses that individual characteristics tell only part of the story. Structural conditions also play a decisive role, including: the organisation of the education system, access to childcare, the design of safety nets, and the functioning of the labour market.
Poverty, the report argues, is not merely a question of money. Financial hardship often intersects with health, education and social isolation. Nearly half of those living in income poverty suffer from chronic illness, and people without post-compulsory education face a markedly higher risk of poverty than average. Household structure is another critical factor. Single-income families are significantly more likely to struggle financially.
A high bare minimum
Switzerland defines poverty in absolute, cost-based terms rather than relative income. For a single adult, the poverty line is about CHF 2,400 per month in disposable income (after taxes and health-insurance premiums). For a single parent with one child, it is roughly CHF 3,800; and for a couple with two children, about CHF 4,650.
Measured in gross income, these thresholds rise to around CHF 3,100 per month for a single adult, CHF 4,700 for a single parent with one child, and CHF 6,300 for a couple with two children. On an annual basis, this corresponds to CHF 37,200 (US$ 46,500), CHF 56,400 (US$ 70,500) and CHF 75,600 (US$ 94,500) respectively. That Switzerland can still record a persistent poverty rate at such income levels is a reminder that the country’s high cost of living is itself part of the problem.
More on this:
Poverty study (in French) – Take a 5 minute French test now
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