If you are moving to Switzerland, or are newly arrived here, you may be wondering what you will spent most of your salary on. Here are some answers.
These figures, however are not universal – that is, applicable to everyone in Switzerland.
That’s because much depends on your income, age, and what canton and city you live in.
So the numbers will vary depending on all these factors, as well as on your personal spending habits.
READ ALSO: Where in Switzerland will your money go the furthest?
Government figures
To make the most accurate assessment possible under the circumstances, the government based its estimates on an average gross income of 9,780 francs per month for a two-person Swiss household.
It found that compulsory charges such as taxes and health insurance premiums constitute the largest expenditure item – accounting for around 30 percent of the gross income – while other obligatory fees and insurance polices, such as car insurance, comprise a further 20 percent.
Also, “in terms of consumer spending, housing and energy take the lion’s share, followed by transport, and then food and non-alcoholic drinks,” according to these calculations.
“After all the expenses are accounted for, Swiss households can on average save 1,700 francs per month.”
Again, these figures are based on a two-person household earning nearly 10,000 francs a month; while the number of people living under one roof and their incomes may vary, in principle, the proportion of expenditures would remain the same.
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Another major household expenditure: rent
Due to a chronic housing shortage in many parts of Switzerland, rents are generally high and expected to keep increasing.
READ ALSO: Swiss government forecasts higher rents in the coming years
The Federal Statistical Office (FSO) found that 19.2 percent of gross household income is typically spent on rent.
This figure is above the recommended amount of no more than one-third of individual or household net income to be spent on rent, including additional costs like heating.
On the other hand, people who live in their own properties spend 8.3 percent of their gross household income on housing costs.
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More costs
Another set of data comes from the research carried out by the Bern University of Applied Sciences (BFH), which looked at which expenses, individually, take the lion’s share of the household income.
It found that over the past 20 years, average health insurance premiums have risen by 105 percent, while salaries have only increased by around 21 percent.
“This means that an ever-greater share of income is being spent on premiums. On average, around 7 percent of disposable income is spent on health insurance premiums.”
Many people, however, spend more: just under two-fifths of the population now spend between 10 and 20 percent of their disposable income on health insurance premiums.
“That represents a sizeable share of the Swiss population – and is an alarmingly high level,” the BFH pointed out.
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Many variables at play
Again, these numbers are not absolute.
For instance, even though health insurance premiums add up to 7 percent (or more) of the salary, many low-income households pay much less.
According to the BFH, over a quarter of people in Switzerland now get a reduction on their premiums of between 50 and 70 percent, depending on their personal circumstances.
This means that the proportion of their income they pay for premiums will be lower than for others.
READ ALSO: How do I apply for health insurance benefits in Switzerland?