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. Late last week, a crisis in investor confidence in […]
Swiss Uber drivers not self-employed says court
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 […]
Swiss central bank hikes interest rate half a percent
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 […]
Removal of marriage tax penalty fails to find broad party support
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 […]
Swiss parliament passes work-related pension reforms
Switzerland’s much discussed work pension reform was accepted by parliament this week after a number of changes, reported Parlament.ch. Like 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 […]
Home ownership now more expensive than renting in Switzerland
Buying has become much more expensive than renting in Switzerland, according to a report by the bank Credit Suisse. The 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 […]
Switzerland’s rent rate comes close to rising
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%. […]
Swiss government backtracks on pension increase
In December 2022, parliament sent a recommendation to the Federal Council to increase state pensions by the rate of inflation. However, this week a parliamentary majority voted not to, reported RTS. The Federal Council had already boosted state pensions by 2.5% from 1 January 2023 before calls were made to bump them up by 2.8% […]
Swiss inflation accelerated in January 2023
Upward pressure on prices continues in Switzerland. Recently published data show annual inflation rising to 3.3% to the end of January 2023, up from 2.8% at the end of 2022. Public sector workers in parts of Switzerland have been demanding salary increases. In Vaud they have been demanding indexation. Looking back across a longer period […]
Swiss government confirms first underlying deficit since 2005
On 15 February 2023, Switzerland’s federal government published finalised figures showing it spent CHF 4.3 billion more than it received in 2022. Excluding extraordinary expenses related to the Covid pandemic left an underlying operating deficit of CHF 1.9 billion, the first shortfall of this kind since 2005. Switzerland’s federal government is required to operate under […]
