Swiss wages better last year, but under 1% Wall-increase

Last year, Swiss nominal wages recorded an average increase of 0.7% over 2015. For the fifth consecutive year, the increase remained below the 1% threshold. In majority, the economic sectors marked a real increase in wages favored by 0.4% negative inflation.

By comparison, the wages increases, negotiated in 2016 by the main labor organizations, referred to almost half a million employees, was 0.4%.

In the industrial sector, nominal wages increased by 0.4%, down from the previous years (+ 0.5% in 2015, + 0.9% in 2014, + 0.7% in 2013 and 2012).

The highest nominal increases were registered in the chemical and pharmaceutical industry (+ 1.5%) and machinery, equipment and transport (+ 0.9%), followed by computer manufacturing and electronics and optical products and watchmaking (+ 0.7%).

The service sector set an increase of 0.8%, higher than the previous two years. Real wages rose by an average of 1.2%. Stronger nominal increases were observed in the wholesale business (+ 2.2%) and in the provision of financial services, auxiliary financial services and insurance (+ 2.1%).

Overall, from 2012 to 2016, the average annual rate of real wage progress was 1.2% (+ 1.1% for men and + 1.3% for women). In the secondary sector, the growth was 1.1%; the service sector showed an average annual increase of real wages of 1.2%.