I am reading that many EU countries will raise salaries due to inflation.

Is the Swiss government somehow adjusting salaries at the national level?

Below for Austria as an example:

“Nominal compensation of employees per head is expected to increase by 8.3% in 2023, 7.1% in 2024 and 3.9% in 2025””

Source: https://economy-finance.ec.europa.eu/economic-surveillance-eu-economies/austria/economic-forecast-austria_en

by the_FIRE_seeker

18 comments

  1. salaries are not set by the government, unless you mean the salary of public servants?

  3. I think you don’t understand how salaries work. They are negotiated between the company and the employee. It is possible to negotiate to tie your salary to inflation, but other than that, the salary is determined by what the contract says.
    That is why inflation is bad, and money printing is bad.

  4. This is, more or less, how it works:

    1. Approach your boss and explain that due to inflation, you should receive a pay raise.
    2. If they agree, then you get a raise.
    3. If not, seek another job and negotiate a better salary.

  5. Probably not, statistically our inflation was very low as well. Not much has changed in price around me versus what I see abroad.

  6. LOL no

    Your boss will probably tell you that due to inflation his cost went up so much they have to fire you.

  9. In Switzerland the government does not set the salaries in the private sector. The only exception is Geneva where the minimum wage is indexed to inflation.

    However, social peace is kept with salary negotiations between unions and employers.

  10. There has never been any inflation in Switzerland. Also I am afraid, there is no Swiss equivalent of the word “Salary increase”

  11. So in economic theory, wages are very inelastic. That means they are set once a year. In a perfect world your boss should give you exactly the amout more of Salary as we have inflation. But reallity is hardy perfect. If we had high inflation every year, you would want more than what the current inflation is because you know next year we would also have it. That would lead to sticky inflation wich means it lasts longer because of that feedback loop. If he gives you less that the infaltion you would loose „real“ wage. In reality you will lose real wage for the first few years but eventually it will catch up. Just because of time. The best you can do is talk to your boss and ask him.

  12. I know it’s not popular but the reality is: increasing salaries cause more inflation.

    What EU countries are doing is just politically motivated so their politicians can get reelected.

  15. Adjust salaries at national level? What do you mean by that? The economy is pretty much liberal here… So maybe the state can update their employees salaries but the rest remains in the hands of private companies.

  16. In capitalism, the cost of inflation is carried by the workers.

  18. Not as much as prices
    That’s the point of inflation and the reason you will never own a house

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