Benefit from high levels of pay
In Switzerland you will enjoy one of the highest levels of pay in the world. You also benefit from a high quality of life combined with a high degree of security and stability in the state and the economy. The key contributing factors to the high level of pay include the high productivity and efficiency of the Swiss economy. Switzerland is exceptionally competitive in many sectors, such as the financial industry, pharmaceuticals, mechanical engineering, electronics and information technology.
You will receive fair pay in Switzerland
The pay system in Switzerland is carefully structured and ensures that you receive fair and appropriate remuneration for your work. Pay is mainly based on your qualifications, experience and your contractual agreements. There is no government-set minimum wage in Switzerland. However, there are some sectors, such as the catering or construction industries, which have established a minimum wage through collective bargaining agreements. One particular asset of the pay system is that it allows exceptional performance and special commitment to be rewarded through performance incentives.
The conditions of employment and the pay system in the canton of Lucerne serve as an example:
Use the pay calculator provided by the Swiss Trade Union Federation to calculate your approximate pay scale based on your profession, age, level of education and qualifications and position:
The statistical pay calculator from lohncomputer.ch gives you an overview of monthly gross pay (mean and range):
The pay calculator of the job portal jobs.ch gives you another idea about what you would potentially earn:
«Lucerne really does offer the whole package – good pay and fair working conditions.»
You will receive additional payments and fringe benefits
On top of your contractually agreed salary, in Switzerland you receive legally defined allowances. These apply for example if you have a family or work overtime, at night or on Sundays. There are often also function-related and market-specific supplements. These vary from case to case, however, and from company to company.
More details on child and education allowances:
Equal pay for women and men
Equal pay for women and men is a fundamental principle of remuneration policy in Switzerland and is enshrined in the Federal Constitution. Since 2018, pay has also been examined within companies for unexplained pay differences between women and men – a key step to achieving equal opportunities and gender equality in the workplace.
How much money do you have left at the end of the month?
It is important not to be blinded by pay levels that at first seem very high. The cost of living is also much higher in Switzerland. So the question of how much money you have left at the end of the month is an important one.
- Generally speaking, living in the more rural regions of the canton of Lucerne is more affordable than living in the city.
- Use the “Find a place to live” tool from the Economic Development Agency to look for somewhere suitable to live. Look in particular at the net local costs:
Find a place to live | Lucerne Economic Development Agency - Use the budgeting examples and guidelines offered by the umbrella organisation Budgetberatung Schweiz (Budget Advice Service Switzerland), based in Lucerne, for private individuals in different living circumstances:
Budgeting examples
Create your personal budget with the Budget Advice Service’s budgeting app:
What is included in my pay?
The pay agreed upon when you sign an employment contract is your gross pay. The compulsory social security contributions are deducted from this amount. Before the salary is paid to you (net salary), the employer deducts several compulsory contributions that go towards the following social insurances:
- Old-age and survivors’ insurance (OASI, 1st pillar of retirement provision)
- Occupational benefits provision / Pension fund (OPA, 2nd pillar of retirement provision)
- Invalidity insurance (IV)
- Loss-of-earnings insurance
- Unemployment insurance (UI)
- Non-occupational accident insurance
The social security contribution amounts may vary depending on the canton, age, salary and occupation status. The employer also contributes to the payment of social insurance. After receiving their net pay, most employees must pay two more compulsory contributions: Taxes and health insurance.
Nationals of EU/EFTA member states who have recently come to work in Switzerland and do not yet have a permanent residence permit (C permit, at least 10 years in Switzerland) have their taxes deducted directly from their gross pay via what is known as withholding tax.
