How Much Do You Need to Thrive in the Alps?

How Much Do You Need to Thrive in the Alps?

The Swiss middle class is the backbone of the country’s economy and society. However, it is repeatedly said that it is under pressure: everything is becoming more expensive, taxes are rising and the aging of society makes it more difficult. Families in particular are feeling the pinch. But who exactly belongs to the middle class?

In Switzerland, the definition of the middle class is not only subjective but also statistically defined. The basis is the so-called net equivalent income, which adjusts the total household income to the number and composition of household members.

According to the definition of the Federal Statistical Office, households are considered part of the middle class if their net equivalent income falls between 70 and 150 percent of the median. The median is the income value that divides the population into two equal halves, with one half earning more and the other half earning less.

In concrete terms, a single person needs a gross monthly income of between 4,126 and 8,826 Swiss francs to be part of the middle class. A couple with two children under the age of 14 needs to earn together between 8,666 and 18,569 francs per month. This shows the large range within the middle class.

More than half of the population belongs to the middle class

In 2022, around 57.6 percent of the Swiss population belonged to the middle-income group. This proportion has remained largely stable over the past 20 years, with the highest value of 61.3 percent in 2009 and the lowest of 54.4 percent in 2018.

There are two other groups, in addition to the middle class: those with low incomes and those with high incomes, each making up around 20 percent of the population.

The income of the middle class has been slowly but steadily rising over the past years. In 2000, the average monthly salary was 5,020 francs, while in 2022 it was 6,173 francs, a 23 percent increase. After deducting taxes and contributions, the remaining amount in 2000 was 3,746 francs and in 2022, it was 4,418 francs, an 18 percent increase. However, the development was not always smooth, with some years seeing stagnant or even slightly decreasing wages.