Although prices and wages are higher in Switzerland than in the rest of Europe, the average Swiss household is still able to save more than 15% of their income each year. 

The average household income in Switzerland is one of the highest in Europe.  But the cost of living and price levels are also very high. 

Household income

Household income in Switzerland is influenced by factors such as occupation, education level, and geographical region. According to the Federal Statistical Office, as of 2021 the average gross income for a two-person Swiss household was CHF 9,780. The largest share of this income, approximately three-quarters, comes from wages, including monthly salaries, the 13th month salary and bonuses.Social security pensions make up another significant proportion of gross income, accounting for around one fifth.

Compulsory charges such as taxes and health insurance premiums account for around 30% of gross income, while fees and insurance comprise a further 20%. After these deductions, households are left with CHF 4,648 for consumption and savings.

However, many households are less well off: about 60% have a disposable income below the national average. Single-person households, especially those of pensioners and single parents, are disproportionately impacted. 

Household expenditures

Compulsory charges, including taxes and health insurance premiums, constitute the largest expenditure item, accounting for about a third of gross income. In terms of consumer spending, housing and energy take the lion's share, followed by transport, and then food and non-alcoholic drinks. After all expenses are accounted for, Swiss households can on average save CHF 1,700 per month.

Prices

Switzerland has a high cost of living. In 2021, Switzerland's consumer prices were 54% higher than the EU average, placing the country at the top of the list, closely followed by Iceland and Norway, which have similar price levels. Prices in Switzerland's neighbouring countries generally align with the EU average. Inpatient healthcare services, the cost of raising children and private education, as well as meat, are particularly expensive in Switzerland. Conversely, audiovisual, photo and information processing equipment, along with electricity, gas and other fuels, as well as private transport, are relatively inexpensive.

Switzerland's Harmonised Index of Consumer Prices has shown relative stability over the last few years.Nevertheless, it rose by 2.7% year-on-year in 2022, compared with 8.4% in the eurozone. Despite rising inflation across Europe, Switzerland has managed to keep inflation relatively contained thanks to the Swiss National Bank's effective monetary policy.