It is too early to know the exact hikes across all sectors, but the the employees’ organisation, Employees Switzerland, is calling for an increase of 2.2 percent, especially for middle-income workers.

“An increase of 2.2 percent is a necessary investment in the people who form the backbone of the company,” Stefan Studer, the association’s managing director said in a press release on Tuesday. “This adjustment is intended to ensure that all employees feel valued and remain motivated to perform at their best.”

He added that companies which don’t pay their employees appropriately “risk falling behind in the coming years. This pay increase is an unmistakable sign of appreciation and economic foresight.”

Who / what determines pay raises in Switzerland?

They are based on factors such as inflation rate and general pay scale in your region (for instance, wages in Geneva and Zurich are generally higher than in smaller towns).

They also depend not only on specific sectors, but on individual jobs within those sectors as well.

Factors such as your performance and contribution to the company’s overall productivity are also taken into account.

In Switzerland, most wages are negotiated through a collective agreement.

This is a kind of contract that is agreed on between Switzerland’s trade unions and employers or employer organisations. 

Aside from a wage for each type of work, this agreement (CLA) also covers regulations relating to work hours; payment of wages in the event of illness or maternity; vacation and days off; and protection against dismissal.

Other important employment-related matters are also subject to negotiations — for instance, pension fund regulations, early retirement, conflict resolution procedures, and funding of training.

CLAs are sector-specific; in other words, they take into account the particular aspects of each branch. As an example, Switzerland’s largest labour union, The Swiss Federation of Trade Unions (UNIA), maintains 265 collective agreements in the areas of industry and construction. 

Collective agreements can also be company-specific — for instance, Coop, Migros, or SWISS airline — or specific to a certain region.

The CLA does not mean you will necessarily get the pay raise you want, but it ensures that your pay will be in line with others in your sector.

What if you work for a small company that doesn’t have a CLA in place?

Your sector may still be represented by a union that will act on your behalf or, as is often the case in Switzerland, you will have to negotiate directly with your employer and ask for a raise that is in line with what is common in your sector, and based on your performance.

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