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 […]
Switzerland’s cross border workers reach record level
At the beginning of the Covid pandemic there was talk of closing Switzerland’s borders. However, it was clear that Swiss hospitals and businesses near Switzerland’s borders would not function without the workers who cross the border daily to work for them, and the notion was dropped. Statistics published this week by the Federal Statistical Office […]
Swiss National Bank to issue new money
The Swiss National Bank (SNB) has started the process of issuing a new series of banknotes by launching a design competition, it announced this week. The new banknotes will not be issued until the early 2030s at the earliest, said the bank. The new series will be dedicated to the unique topography of Switzerland and […]
Swiss want more political action on immigration
A survey report published this week shows that the population of Switzerland increasingly sees immigration as a challenge and desires political action. Overall, while the economic and cultural effects of immigration are viewed positively, the strains on infrastructure, housing and the environment are viewed negatively. In addition, negativity towards immigration is showing among groups that […]
Swiss Rail financial results disappoint
This week, Swiss Rail published its half-year results. During the first six months of 2024, the company made a profit of CHF 50.8 million, a level far below what is required for it to operate comfortably and service its debt. As a rule of thumb, to remain in good financial shape the company needs to […]
Swiss economy grows more than expected in second quarter of 2024
Switzerland’s economy grew slightly more than expected in the second quarter of 2024, reported SRF. Between April and June 2024, Gross domestic product (GDP) rose by 0.5%. A survey of economists had expected growth for the quarter to be between 0.2% and 0.4%. The biggest driver of growth during the quarter came from industry, which […]
Swiss government plans to fund higher pensions with higher VAT
In March 2024, 58% of voters voted in favour of paying an additional 13th month of state pension. That triggered a fierce debate on how to fund it. This week, Switzerland’s Federal Council said it planned to fund the increase with higher VAT with no rise in salary taxes. The news was delivered by Elisabeth […]
European immigration into Switzerland rises by 29%
Data published by Switzerland’s State Secretariat for Economic Affairs (SECO) show a sharp rise in the number of people moving to Switzerland from EU/EFTA nations. In 2023, 68,000 people arrived in Switzerland from EU/EFTA countries to live, the highest number since 2008 when 72,100 arrived. The 2023 figure is 29% higher than the number of […]
Swiss housing crisis squeezing those on low incomes
Switzerland’s housing crisis is pushing low income earners into poverty, warned Caritas this week. According to the charity, high rents are pushing some low income earners into poverty. An acute shortage of housing is pushing rents beyond the level that some people can afford, forcing them to cut back on spending in other areas, said […]
Swiss inflation in May erodes case for further interest rate cut
In March 2024, as Switzerland’s month-on-month inflation rate went to zero and the annual inflation rate dipped to 1%, the Swiss National Bank (SNB) cut its key interest rate from 1.75% to 1.5%. Some expected the bank to keep cutting. However, in both April and May 2024, monthly inflation returned, making further imminent rate cuts […]