Non-wage labour costs
The deciding factor for employers is not the salary that they pay but rather the unit labour cost. Although salaries are high in Switzerland, the non-wage labour costs that employers must bear in addition to gross salary (employer social security contributions) add up to just 15%. Coupled with high productivity, modest taxes and low capital costs, this means that at the end of the day many employers pay less than in other European countries.
Industry labour costs: direct remuneration and non-wage labour costs (2007)
Labour costs in EUR/hour
* Not available: Brazil, China, India, Russia
Source: Institute for the German Economy (Institut der deutschen Wirtschaft), Cologne, Industry labour cost, international comparison, IW-Trends 3/2008
Example wage calculation: employer and employee contributions
Example: Employee with two children
* Voluntary
** Amount varies according to the age of the insured person (approx. 3.9 % -10 % is mandatory)
*** Depends on the industry and business risks