Switzerland: minimum salary gap for EU/EFTA talent

Context

TL;DR

• Switzerland ranks first in the IMD World Talent Ranking
• Adjusted EU/EFTA gap: 1,1% lower
• Third countries: 4,5% lower
• Immigration via free movement of persons: 77%

Key facts

• ILO data period → 2015-2020
• IMD World Talent Ranking → first place
• Global Talent Competitiveness Index → second place
• Immigrant nursing staff in high-income countries → 19,6% less than non-immigrant colleagues
• Adjusted salary of EU/EFTA nationals in Switzerland → 1,1% lower than that of Swiss nationals
• Adjusted salary of third-country nationals → 4,5% lower than that of Swiss nationals
• Permanent immigration through free movement with the EU/EFTA → 77%
• Average unexplained gap in high-income countries → about ten percentage points

Switzerland's leading position

Switzerland has ranked first in the IMD World Talent Ranking for years and is second in the Global Talent Competitiveness Index. The OECD also ranks it among the most attractive countries for highly skilled workers in its Indicators of Talent Attractiveness. The wage data adds a less well-known element: holding a foreign passport has almost no impact on salary.

An ILO report finds that in many highly developed economies, immigrants earn lower wages than residents even with the same qualifications. Once education, professional experience, age, sector and place of work are taken into account, an unexplained difference of about ten percentage points remains on average. Women are disproportionately affected, and in high-income countries, immigrant nursing staff receive, on average, pay 19,6% lower than their non-immigrant colleagues.

Switzerland is an exception, especially compared with Denmark, the Netherlands, Ireland and Sweden: for people from the EU/EFTA, the adjusted wage gap is virtually nonexistent.

The comparison between the ILO and SECO

ILO data cover the period 2015-2020. The organization clarifies that no more recent, comparable international calculations are available.

For Switzerland, a more recent analysis by SECO is available. After adjustment, the equivalent salary of people from EU/EFTA countries is 1,1% lower, within the margin of statistical uncertainty. SECO writes:

«The data suggest that, in general, people who arrived through free movement seek pay similar to that of Swiss citizens and are able to obtain it».

For nationals of third countries, the difference rises to 4,5%. SECO links it primarily to structural factors: qualifications obtained outside the EU/EFTA are not always comparable or valued in the same way, while language proficiency could play a role.

The source does not attribute the result to a special law against discrimination based on origin or nationality. The equal-treatment law in fact protects only against discrimination based on gender. The explanation given is the composition of immigration: about 77% of permanent immigration over the past 15 years came through free movement with the EU/EFTA. Many of those who arrived have a high level of education, comparable qualifications, speak a national language or work for international companies where English is the main language. For those considering new opportunities, the first point of comparison nevertheless remains in annunci di lavoro.

Operational details

From statistics to choosing a job

The Swiss figure does not describe a rule that assigns the same salary to everyone arriving from abroad. Instead, it describes a market in which, after adjusting for education, work experience, age, sector and place of work, the gap between Swiss and immigrant workers becomes very small for the EU/EFTA group. The distinction from third countries is therefore necessary to interpret the figures correctly.

The correct comparison

For a female or male worker, the practical consequence is not to use their passport as the sole parameter. The soundest comparison starts with the variables considered by the analysis: education, experience, age, sector and place of work. If these characteristics are comparable, the Swiss result indicates a very small disparity for people from the EU/EFTA. The same interpretation cannot automatically be applied to people from third countries, for whom the source describes a larger difference linked mainly to structural factors.

Here, the structure of immigration is decisive. Over the last 15 years, the free movement of persons with the EU/EFTA has accounted for about 77% of permanent immigration. According to the source, many of these people have a high level of education and qualifications that are relatively comparable in the Swiss labor market. Some already know a national language; others are employed by international companies where English is the main language. These factors help explain how talent attractiveness and a small wage gap can coexist.

The Swiss average may also be influenced by the salaries of highly specialized professionals and executives, which raise the overall figure. This does not erase the differences between individual profiles, but explains why the national figure should not be read as an individual promise.

Two levels remain that should not be confused. The ILO allows international comparison for the 2015-2020 period, while SECO offers a more recent analysis for Switzerland; however, the international organization points out the absence of new and comparable calculations. To move from the statistical average to your own salary document, you can consult the guide to busta paga svizzera.

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

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Key points

How to turn statistics into a comparison

The source does not present an administrative procedure, a deadline, or a document to use to obtain a salary that is aligned. The concrete action for those who work or are looking for work in Switzerland is to build a comparison that does not conflate groups, periods, and qualifications. The following approach stays within the available data.

Four steps

1. Identify the comparison group. Before interpreting a pay difference, distinguish people from the EU/EFTA from those from third countries. The source shows that the two results are not interchangeable; using a single average would erase precisely the distinction considered by SECO.

2. Separate observed salary and adjusted salary. Note whether the comparison takes education, professional experience, age, sector, and place of work into account. These are the factors indicated in the source: without this check, a raw difference does not show whether the passport actually had an impact.

3. Check qualifications and language. For qualifications obtained outside the EU/EFTA, comparability and recognition on the Swiss labor market are not always equivalent. Language proficiency could play a role. If the activity takes place in an international company, the reference to English as the main working language, an element mentioned by the source, must also be considered.

4. Separate the periods. Use the ILO data for 2015-2020 for the international comparison and the SECO data for the more up-to-date Swiss analysis, without presenting them as if they were the same series. The ILO notes that it does not have more recent calculations that are internationally comparable.

What the reader can conclude

The result of the verification should remain proportionate. International statistics describe an average gap; the Swiss analysis measures differences after adjustment. Neither data point alone offers a promise about every person’s salary. Instead, they offer a criterion for assessing an offer: ask whether the profile is comparable, which statistical group is relevant, and which period is being used.

This reading can support both the search for a job and the review of a proposal already received. It is advisable to keep the data on education, experience, sector, and place of work separate, because these are precisely the variables used to adjust the comparison. In this way, the reader avoids automatically attributing to nationality a difference that the source also links to qualifications or language.

To translate this verification into a comparison of your own income, use calcolatore stipendio.

Source: tvsvizzera.it