Salary Increase and Retirement Reform in Switzerland: Insights from Swiss Employers’ Union (UPS) President Severin Moser

2023-11-13 03:09:00

Employees might benefit from a real increase in their salary in 2024 in Switzerland, announces the president of the Swiss Employers’ Union (UPS), Severin Moser. But ‘we are not going to achieve increases of 4 to 5% as demanded by the unions’.

‘Inflation is expected at around 2.1% for 2023 and I believe that salary increases might be higher than this rate,’ specifies Mr. Moser in an interview broadcast on Monday by Le Temps. According to him, the tense situation on the job market encourages companies to offer good conditions to their employees to remain attractive.

But not all workers will benefit from real wage increases, he warns. ‘There is […] some sectors for which it will be difficult.

He notes that there are years when employees lose, but others where they win. ‘Last year, it is true that real wages fell, but if we look over the last ten years, there is an annual average increase of 0.3%.’

Retirement at 66

And with the retirement of half a million workers by 2030, ‘we will remain in a market favorable to job seekers,’ he adds.

To deal with these massive departures, Mr. Moser recommends making better use of existing potential, such as, for example, women or seniors. ‘For these profiles, we need to think regarding more flexible retirement systems.’

He cites in particular an increase in the retirement age to 66 years. ‘We are long overdue in taking the plunge in the face of demographic developments in the first pillar […] The initiative on pensions of the Young Liberal-Radicals offers us a way out of this political impasse. The initiative will be put to a vote in March 2024.

/ATS

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