Despite significant nominal wage increases in Switzerland, inflation continues to diminish real wage growth.

Wages in Switzerland rose significantly last year. However, as in the previous year, inflation slowed the rise in wages.

According to calculations by the FSO, nominal wages will rise by an average of 1.7% in 2023, as was reported in a press release on Thursday.

In the last estimate in late fall, an increase of 1.8% had been forecast.

The FSO estimates the nominal wage trend on a quarterly basis.

The value is based on cumulative wage data on the development of gross wages including the 13th month’s salary and may change with each subsequent estimate.

Decline in Real Wages

For many employees, wage increases have been eaten up by inflation. Taking into account average annual inflation of 2.1% real wages fell by an average of 0.4%, according to the FSO.

According to the FSO, wages rose by 0.9% in nominal terms in 2022, but fell by a whopping 1.9% in real terms.

Inflation of 2.8% was also the main reason for the decline back then.

©Keystone/SDA