Nominal wages in Switzerland rose rise by an average of 1.8% in 2025, with real wages increasing by 1.6%. Swiss purchasing power therefore grew for a second consecutive year.
Wage growth picked up noticeably in 2025 and, for the first time in years, more was retained in real terms as inflation remained subdued. According to the Federal Statistical Office (FSO), nominal wages increased by 1.8% on average, while slowing inflation boosted real gains.
This marks the second straight year of rising purchasing power and the strongest increase since 2009. Comparable gains were seen in 2015 and 2020, though last year’s rise was more modest, at 0.7%.
Over the past 12 years, real wages have risen in seven. They fell between 2021 and 2023, largely owing to elevated inflation, which peaked at 2.84% in 2022.
Wage growth varies by sector. In manufacturing, nominal wages are rising by 1.5%; in services, by 1.9%. Within industry, chemicals, pharmaceuticals and metal processing are seeing relatively strong gains, while mechanical engineering and vehicle manufacturing lagged behind.
In services, wages in public administration and specialised professional services are increased faster than average, whereas pay in health and social care was broadly flat. Retail wages also grew more slowly than the average.
Gender differences are notable: women’s nominal wages rose by 2.3% in 2025, compared with 1.5% for men. This gap largely reflects differences in occupational distribution and sectoral employment patterns rather than direct pay discrimination.
The overall increase in purchasing power is driven chiefly by low inflation. After higher rates in recent years, inflation has fallen to 0.2%, reducing the erosion of wage gains.
The real wages bump comes on top of a stronger franc. By the end of 2025, the currency had appreciated by about 1% against the euro, increasing its purchasing power abroad. Taken together, the average Swiss wage could buy roughly 2.8% more in the eurozone at the end of 2025 than a year earlier.
Travail Suisse, a trade union umbrella group, criticised the growing use of performance-related pay and one-off bonuses, arguing that such measures provide only temporary gains and do not deliver lasting wage growth. Yet these more flexible pay components can help Swiss exporters adjust to the vagaries of a stronger franc and the pressure of tariffs.
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