Switzerland: The State wants to curb the salary costs of its employees

Switzerland: The State wants to curb the salary costs of its employees
Switzerland: The State wants to curb the salary costs of its employees

Federal employees earn on average 12% more than those in the private sector with equal qualifications, according to a study by the Lucerne Institute of Economic Policy (IWP) dated 2023. The more than 500 federal logisticians, for example, earn 91,000 francs per year, or 17% more than in the private sector, and laboratory workers 102,000 francs, or 26% more. These salary disparities have sparked criticism, with some believing that federal salary policy distorts competition for scarce specialists, to the detriment of the economy.

However, Confederation executives are often paid less than their private sector counterparts, due to bonuses and other benefits. The gap can reach 58%, reports the “NZZ” of the day. The Confederation partly compensates for this gap with generous old-age provision. Faced with these differences, the Federal Council decided to limit the increase in salary expenditure, planning to reduce the adjustment to the cost of living and to examine deeper interventions on the salary structure. For their part, unions are concerned about the measures planned by the State, estimating that cost reduction could threaten thousands of jobs. They request a consultation to propose cost-saving solutions.


Swiss

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