Wages and the labour market in the Canton of St Gallen (cross-border guide)

Context

In a nutshell

• St. Gallen: diversified economy between industry, services and trade
• No federal minimum wage in Switzerland
• Sector CCL with or without general obligation
• Salaries related to training, experience and level of responsibility

Key facts

• What: Structure of the labour market in the Canton of St. Gallen
• Where: Canton of St. Gallen, eastern Switzerland
• Who: Employers, employees, State Secretariat for Economic Affairs (SECO), Federal Statistical Office (FSO/BFS)
• When: Current context, with annual updates
• Amount: No federal statutory minimum wage; CCL-determined wages, individual contracts, and level of training

The labour market in the Canton of St. Gallen reflects the economic structure of eastern Switzerland: a diverse productive fabric, where manufacturing, financial and insurance services, trade, health and training coexist. Those looking for work or who want to understand how their salary is positioned must consider three fundamental variables: the sector of activity, the degree of training and the experience gained.

Sectors hiring

In St. Gallen, as in the rest of Switzerland, the demand for labour is concentrated in the sectors of services, health, mechanical engineering and technology. The cantonal economy benefits from the proximity to the economic poles of Zurich and the Lake Constance region. The secondary sector — in particular mechanics

Operational details

Salary levels by level of training

In Switzerland, the salary level is closely linked to the training path. The Confederation traditionally distinguishes four levels: compulsory education, secondary education II (apprenticeship or maturity), non-university tertiary education (SFP) and university education ( bachelor's, master's, doctorate). With the same sector, those who have a university degree have access to higher salaries, but the range can vary significantly between sectors.

In the Canton of St. Gallen, aggregate wage data for the entire labour market is published periodically by the UST/BFS, which tracks the structure of wages on a national scale. The Confederation does not set a statutory minimum wage at the federal level: the wage is determined by supply and demand, the CCLs and individual bargaining. However, several cantons — notably Geneva, Neuchâtel, Jura and Basel-City — have introduced a cantonal minimum wage by law. St. Gallen does not fall within these Cantons: therefore, the principle of contractual freedom applies, tempered by the sectoral CCLs where present.

For guidance, it is useful to consider the Swiss median salary as a reference point: the exact figure is updated annually by the UST/BFS and is indexed on a national scale. The coordinated salary for the purposes of the LPP/BVG, on the other hand, depends on the age group of the worker: 7% for those between 25 and 34

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

How to navigate the job search in St. Gallen

For those looking for a job in the Canton of St. Gallen, the first step is to consult the national job boards and the cantonal placement portals. SECO manages the public employment service and provides information on professions in demand. At the same time, the regional placement offices (RAV/URC) offer support in preparing your application file and in matching supply and demand.

Before signing a contract, it is essential to check some key elements: the salary offered compared to the reference market, the existence of a sector-specific collective labour agreement (CLA/CCL) with any general obligation, the duration of holidays and the notice clauses. Federal law provides for increasing notice periods based on seniority: one month during the first year of service, two months from the second to the ninth year, three months from the tenth year onwards.

Procedure for those moving to Switzerland

For a Swiss citizen or a permit holder who wishes to work in St. Gallen, the process is relatively straightforward: active search through specialised portals, sending the application file, interview and signing of the contract. For foreign nationals coming from third countries, the issuance of the residence permit (L or B) falls under the responsibility of the State Secretariat for Migration (SEM). EU/EFTA citizens benefit from facilitated access to the Swiss labour market thanks to the Agreement on the Free Movement of Persons.

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