Salary Budget Planning Report 2025
ZURICH, GENEVA, LAUSANNE, August 28, 2025 — Average salary increase budgets for Swiss companies in 2026 are expected to remain relatively stable at 2.6% compared to 2025’s actual increases (2.5%). This is according to the latest Salary Budget Planning Report by WTW.
Over half of organisations in Switzerland saw their salary budgets change in the last pay cycle (57%). About a third (35%) of these organisations reported no change between their anticipated and actual pay budgets in 2025. For the 48% of these organisations that are projecting lower salary increase budgets than last year, the most common reasons cited are concerns related to cost management (52%), and an anticipated recession or weaker financial results (48%). This is shown by the survey regularly conducted by WTW, a leading global, broking and solutions company.
“While top-line budgets are generally holding steady, the real shift is happening beneath the surface. Organisations are being more deliberate about how they allocate pay, where they focus investment and what outcomes they expect to drive. Employers are no longer simply reacting to economic signals; they’re reimagining how to best support broader business goals despite uncertainty,” said Stephan Wildner, Managing Director WTW Switzerland.
“Employers are no longer simply reacting to economic signals; they’re reimagining how to best support broader business goals despite uncertainty.”
Stephan Wildner | Managing Director WTW Switzerland
Organisations have found attracting and retaining employees increasingly challenging compared to the past two years. This year, two thirds (65%) report difficulty, representing an increase of 4 percentage points since 2023.
In response to the competitive labour market, organisations have taken a number of actions to support their workforce, including improving the employee experience (37%), increasing or targeting the use of training opportunities (37%), placing a broader emphasis on diversity, equity and inclusion (36%), providing more workplace flexibility (35%), and changes to health and wellness benefits (34%).
In comparison, just a few organisations have taken changes or plan to adjust their compensation programmes (17%). Their focus lays on enhancing the use of retention bonuses or spot awards (36%), conducting a full compensation review of all employees (33%), performing a compensation review of specific employee groups (31%), hiring people higher in relevant salary ranges (31%), and raising starting salary ranges (29%).
As organisations focus on these efforts, two thirds continue to wrestle with higher annual payroll expenses. More than 6 in 10 organisations report total annual payroll expenses higher than last year.
“As employers navigate continued economic uncertainty, ongoing increases in labour costs and the changing needs and expectations of employees, they are positioning themselves for what is to come and making investments in their workforces that go beyond pay raises. These include career development, wellbeing, flexibility and equity—because these are critical for performance, retention and resilience in a shifting market,” said Stephan Wildner.
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