Salaries 2026: Double raises for the best

Context

At a glance

• Top performers receive a 3.9% increase, nearly double the average (2%)
• WTW: 97% of Swiss companies use performance metrics
• In the IT sector, growth stalls at just 0.2% in 2026
• Estimated average of 2.3% in 2026, forecast of 2.4% in 2027

Key facts

• What: Annual survey on the structure of salary increases in Switzerland
• When: 2026 (survey conducted this year)
• Where: Switzerland, with particular focus on the IT sector
• Who: WTW (business consulting firm) and SwissICT (IT industry association)
• Amount: 3.9% (top performers), 2.0% (average), 0.8% (below average)
• Key figure: 97% of companies consider performance in salary increases
• Forecast: 2.4% estimated average increase for 2027

According to WTW's annual survey, salaries in Switzerland are increasingly differentiated based on work performance. This year, so-called top performers received increases of 3.9%, nearly double their colleagues with average performance, who received 2.0%. Employees with below-minimum performance received just 0.8%.

The companies surveyed by WTW attributed an average salary increase of 2.3%. The forecast for 2027 is slightly more optimistic: an average increase of 2.4% is estimated.

Differentiating salaries based on performance is now established practice in the Swiss business landscape: 97% of companies that apply individual increases explicitly consider personal performance, as shown in WTW's publication «Salary Budget Planning Report».

Limited differences between hierarchical levels

WTW's report highlights an interesting finding: differences between various organizational levels remain contained. Managers do not automatically receive higher percentage adjustments compared to lower-level employees. Average increases for all employee groups move within a narrow band, ranging from 2.0% for lower levels to 2.3% for top management. This suggests that individual performance matters more than the role held in the organization.

To calculate the real impact of a salary increase on your net income, use our salary calculator, which takes into account federal, cantonal taxes and pension contributions according to your canton of residence.

Operational details

The collapse of the post-pandemic boom: the impact on the IT sector

A drastically different picture emerges from the IT sector. According to a report released by SwissICT, the Swiss industry association for the sector, salary growth is shrinking drastically. In 2026, the median salary in the IT sector grew by only 0.2%, a collapse when compared to previous years of sustained expansion.

The end of the post-pandemic boom marked a sharp fracture in the ICT market. Where previously there was widespread and almost automatic salary growth, today specialized skills and individual qualification matter most. The experts cited in the report explain that the sector is suffering the direct impact of artificial intelligence: the technology is transforming the mix of required skills, making some profiles less desirable and others—such as specialists in artificial intelligence, machine learning, and cybersecurity—even more sought after by the market.

Who benefits and who falls behind

In this scenario of contraction, only the most qualified professionals can still hope for substantial salary increases. For most workers in the IT sector, salary adjustments are destined to remain extremely modest. This polarization reflects a broader trend in the Swiss economy: the distance between top performers and the masses is widening, both in the IT sector and in other sectors.

Those living and working in Switzerland, especially in the technology sector, are facing a reality transformed compared to the previous five years. Companies no longer distribute uniform salary gains: merit clearly rewards, but competition for specialized resources is fierce. An employee with standard skills will increasingly find it difficult to negotiate significant raises, while those who specialize still see opportunities for salary growth.

Inflation reduces the impact of increases

Given that increases remain modest (average 2.3%), it is crucial to verify whether your own salary can offset the cost of living in Switzerland, which remains among the highest in the world. Rent, health insurance premiums, energy, and essential goods absorb a significant share of income. A 2.3% increase may not be enough to maintain real purchasing power, especially if you received 0.2% in the IT sector.

Useful planning tools

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

Key points

How to evaluate your salary increase

If you have received a raise or are about to negotiate a new salary, WTW data provides a useful benchmark for 2026. A median national increase stands at 2.3%. If you fall into the 'top performer' category according to company metrics (high ratings, exceptional results, specialized skills), expect an average increase around 3.9%. If your results are average, 2.0% is the reference figure. If your performance is below average, you stay at 0.8%.

These benchmarks apply to almost all Swiss companies: 97% apply performance criteria in determining increases. If your company does not clearly communicate the assignment criteria, or if you receive an increase below your performance level, you have reason to request a review meeting with the human resources management.

Strategies in the Swiss labor market

For Swiss workers, especially those who do not fall into the top performer category, some practical implications emerge.

Specialization: investing in continuous training is essential. In the IT sector the trend is clear, but it applies to all sectors. Companies pay more for those with rare and hard-to-replace skills, and this gap tends to widen over time.

Professional mobility: if your employer offers increases below the category average (below 0.8%-2.0%), consider actively seeking new employment. The Swiss labor market remains dynamic, especially for specialists with required skills.

Transparent negotiation: document your results and performance. Companies that apply transparent metrics should be able to explain why you fall into one category rather than another. If the numbers do not match your assessment, ask for a meeting.

Supplementary pension: since salary increases remain modest, consider additional contributions to the third pillar (3a) to prepare for an adequate retirement. The AVS alone, especially for those with below-average salaries, may not guarantee sufficient income in the long term.

Calculate the impact on your net income

To verify how a salary increase actually affects your net income in the canton where you reside, consult our salary and tax calculator. It shows you the details of every federal, cantonal and municipal deduction, as well as contributions to AVS/AHV and LPP/BVG. Also subscribe to the Frontaliere Ticino newsletter to follow the evolution of the Swiss labor market month by month.

Source: swissinfo.ch