Keystone-SDA
Higher wages and simultaneously falling inflation are likely to increase the purchasing power of the Swiss population in the coming year. Given rising health insurance premiums, many households could still have less in their wallets at the end of the month.
This content was published on
07. November 2024 – 10:47
(Keystone-SDA) This is the conclusion of the salary survey published on Thursday by the Chief Investment Office of UBS Global Wealth Management (UBS CIO GWM). Accordingly, the 345 Swiss companies surveyed by UBS are planning wage increases of an average of 1.4 percent in 2025.
“This means that wage growth will slow slightly, but due to the expected decline in inflation, real wages are likely to increase for the second time,” said UBS chief economist Daniel Kalt at a media conference. UBS expects inflation to reach 0.7 percent in 2025. On average, wages are likely to rise by 0.7 percent in real terms.
Broad-based wage increases
According to UBS, employees in the IT and telecommunications sectors as well as the energy, supply and disposal sectors can expect the highest wage increases of around 2 percent. The chemical-pharmaceutical industry follows with 1.7 percent. “A large part of the industry is likely to lag behind the average,” explained UBS economist Florian Germanier.
The media industry recorded the lowest wage growth, sharing last place with the building materials industry and the retail trade with an increase of 1 percent. But here too, the expected inflation of 0.7 percent means an increase in real wages and thus purchasing power.
Less in your wallet
However, the health insurance premiums that have been rising sharply for years are not taken into account. “Many Swiss households are therefore likely to feel a decline in purchasing power,” continued Germanier.
Nevertheless, UBS economists assume that the forecast increases in real wages will support consumption in the coming year, “even if rising health insurance premiums and the moderate increase in unemployment limit the potential.”
The rising wages are also unlikely to trigger any inflationary pressure: “Due to falling electricity prices and the expected fall in the reference interest rate, inflation is likely to fall further in 2025,” said chief economist Kalt.
