The Secret Reason Switzerland Is The World's Top Destination For Skilled Professionals
I write about demographic developments, societal trends and debates in Switzerland. I joined SWI swissinfo after 15 years at a local newspaper in Zurich.
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By international standards, workers coming to Switzerland from abroad can generally expect high salaries. What is less widely recognised is that their foreign citizenship seems to have little effect on their pay.
In many wealthy countries, immigrants earn less than local workers. Even when age, education, work experience, industry and location are comparable, a substantial difference remains. In Switzerland, that gap all but disappears, particularly for immigrants from the European Union and the European Free Trade Association (EFTA).
The finding is all the more striking given Switzerland's success in attracting highly skilled workers. It has topped the IMD World Talent Ranking for years and ranks second in the Global Talent Competitiveness Index. It is also among the most appealing destinations for highly skilled workers, according to the Indicators of Talent Attractiveness published by the Organisation for Economic Co-operation and Development (OECD).
External Content Equal qualifications do not mean equal payA report by the International Labour Organization (ILO) shows how sharply Switzerland differs from its international competitors. It finds that a systematic pay gap exists between local workers and immigrants in many advanced economies.
Even after adjusting for explainable differences, a 10% wage gap remains on average in most of these countries. The disparity is particularly notable in occupations facing staff shortages, with women disproportionately affected. In high-income countries, immigrant nursing staff earn an average of 19.6% less than their non-migrant colleagues, according to the ILO.
External ContentSwitzerland, however, stands as a clear exception to this international trend. Immigrants in Switzerland face relatively little disadvantage when it comes to pay, even when compared to other countries competing for highly skilled workers such as Denmark, the Netherlands, Ireland, and Sweden.
There is an important caveat: the ILO data cover 2015 to 2020. The organisation says it has no newer figures that allow comparisons between countries.
What the latest Swiss figures showA more up-to-date picture comes from Switzerland, where the State Secretariat for Economic Affairs (SECO) has compared the pay of Swiss and foreign workers.
Immigrants from EU/EFTA countries earn just 1.1% less than Swiss workers after adjustment, a difference within the range of statistical uncertainty.“These findings suggest that immigrants arriving under the free movement agreement generally ask for, and secure, similar pay to Swiss nationals,” SECO said in a written response.
Workers from outside the EU/EFTA earn 4.5% less than Swiss workers after adjustment. SECO mainly attributes this larger gap to structural factors. Their qualifications may be harder to compare with Swiss credentials or be less readily applicable in the Swiss labour market. Language barriers probably also play a part.
The central finding remains that there is almost no systematic pay gap between immigrants from EU/EFTA countries and their Swiss counterparts.
Why Switzerland is differentSwitzerland's narrow wage gap is not the product of unusually strong legal safeguards against pay discrimination. Its Gender Equality Act protects against unequal pay on grounds of gender, but Swiss employment law has no equivalent act specifically covering origin or nationality.
The explanation lies instead in who comes to Switzerland. Around 77% of long-term immigration over the past 15 years has been under the free movement agreement with the EU/EFTA. Many of these workers are highly educated, with qualifications that are relatively easy to compare to Swiss credentials. Some already speak one of Switzerland's national languages. Others are employed by international companies that mainly work in English.
More More Demographics Switzerland expands as Europe contracts and neither is happyThis content was published on Apr 28, 2026 Demographic change and workforce migration are transforming Europe and Switzerland. Profound disruptions are on the horizon.
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