Swiss Real Wages Are Set to Continue to Increase, KOF Says

(Bloomberg) — Swiss real wages are set to increase again and outpace the historic average, according to ETH Zurich’s KOF economic research institute.

The rise of 0.7% over the next 12 months is the result of a 1.2% average gain of nominal salaries — based on the survey of some 3,500 private-sector firms — minus the 0.5% inflation rate KOF predicts over the period.

That’s well above the 0.2% average of the past decade, though it falls short of last year’s 1.6%.

The expectation adds to recent good news that the economy grew five times faster than expected in the second quarter. If a trend is sustained, that might eventually sway Swiss National Bank officials away from their current expansive policy. Last month, Bloomberg reporting suggested they currently expect that the interest rate will stay at zero through 2027 unless new shocks emerge.

The highest wage growth is expected in the construction sector, KOF said, while the pharmaceutical and chemical industries as well as banking have cut back on wage increases compared to last year. That’s due to US tariffs, higher energy prices and the ongoing integration of Credit Suisse into UBS, the institute said.

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