Financial Inequalities Between Women and Men in Switzerland

That women still earn less, on average, than men, is a well-known fact. But there are also areas of finance in which men are disadvantaged. Here, moneyland.ch lists some of the less-known inequalities between men and women in Swiss personal finance.

1. Salaries – men earn around 892 francs more

In Switzerland, women earn 19 percent less than men, on average, according to the most recent statistics from the Federal Statistical Office (FSO). There are many factors which affect this, including maternity and part-time employment. Effective differences also vary broadly between industries, qualifications, and positions.

Women:

The median gross salary for women is around 5795 francs per month. The average gross monthly salary, standardized to full-time employment, is 6456 francs for women.

Men: 

The median gross salary for men is around 6687 francs per month, or 892 francs more than the median salary for women. The average gross monthly salary, standardized to full-time employment, is 7968 francs for men, or 1512 francs more than the average salary for women.

2. Old age pensions – men get 1349 francs more

On average, women receive lower old age pensions than men, as the most recent data from the FSO shows. This is because pensions correlate directly with salaries.

Women:

The average old age pension from the Old Age and Survivors’ Insurance (OASI) which women receive is 1726 francs per month. The average pension which women receive from occupational pension funds (BVG) is 1519 francs.

Men:

Men receive an average OASI old age pension of 1900 francs and an average occupational pension of 2694 francs. So on average, men get 174 francs more from the OASI, and 1175 francs more from pension funds. So the combined old age pensions of a man are, on average, 1349 francs higher than those of a woman. 

3. Retirement age – women can get up to 29,400 francs more

While a unified retirement age is on the horizon, men are currently still disadvantaged compared to women.

Women:

As a woman, you can retire and receive full pensions from the OASI and your occupational pension fund (BVG) at age 64. Based on the maximum OASI pension of 2450 francs per month, women can receive up to 29,400 francs more than men from the OASI thanks to this extra year. Important: From 2025, the OASI retirement age for women will be 65 years old, so this difference will no longer exist.

Men:

The retirement age for men is 65. As a man, you receive full pensions from the OASI and your pension fund when you work until age 65. 

4. Military service penalties – men pay up to 4400 francs

Men are disadvantaged compared to women in terms of military service and penalties.

Women:

Women are not required to perform military or civilian service in Switzerland. However, they can volunteer for military service if they choose to. In that case, they are entitled to the standard income compensation and pay.

Men:

In Switzerland, men are required to perform military or civilian service. As a serviceman, you are entitled to standard income compensation and pay. If you, as a man, fail to perform your service, you must compensate by paying an ongoing penalty. This penalty must be paid annually for a maximum of 11 years, and is equal to 3 francs per 100 francs of your taxable income, with a minimum annual penalty of 400 francs. Based on the minimum penalty and maximum term, a man would pay a total of 4400 in penalties for not performing military service.

5. Paid parental leave – women can get up to 16,464 francs more

Men are severely disadvantaged compared to women in terms of paid parental leave. This can be justified by the fact that maternity takes a physical toll on women. The maximum per-child benefit from social parental leave insurance (MSE/VSE) is 16,464 francs higher for women than for men.

Women:

As a woman, you get 98 days of maternity leave when you have a baby. During this time, you get compensation equal to 80% of your salary, up to a maximum of 196 francs per day. Based on those figures, the maximum benefit you can claim per maternity is 19,208 francs.

Men:

As a man, you get just 14 days of paternity leave when you have a baby. As with women, the compensation is also equal to 80% of your salary, with a limit of 196 francs per day. So the maximum benefit you can claim is just 2744 francs per paternity.

6. Hospital Insurance – women pay more

Supplementary hospital insurance is significantly more expensive for women than it is for men.

Women:

On average, women pay over 12% more for supplementary private and semi-private hospital insurance than men, as shown by data from the moneyland.ch hospital insurance comparison for the canton of Zurich. But differences are far more pronounced in certain age groups. For example, a 31-year-old woman will pay an average of 2089 francs per year for private ward insurance. That is 560 francs (36.6%) more than the average 1529-franc premium for men the same age.

Men:

On average, men pay over 12% less for hospital insurance. One reason for this is that maternity is not a cost factor for men.

7. Life insurance – men pay thousands of francs more

On average, men pay much higher life insurance premiums in Switzerland than women, as a moneyland.ch Swiss life insurance study shows.

Women:

A 50-year-old woman who does not smoke will pay an average of 6885 francs for 250,000-francs of term life insurance with a constant death benefit over a 10-year term.

Men:

The exact same life insurance, but for a man, costs an average of 9049 francs across the full term. That is 2164 francs more than the average cost for women.

8. OASI survivor’s pension – women can get much more

There are huge discrepancies between widows’ and widowers’ pensions from the OASI.

Women:

As a woman, you are entitled to a widow’s pension from the OASI if you meet one of these criteria:

• You have at least one child, regardless of their age, at the time of your spouse’s death.

• You are older than 45 when you become a widow, as long as you were married for 5 years in total across all past marriages.

As a divorced woman, you can get a pension when your ex-spouse dies if you meet one of these criteria:

• The marriage lasted for at least 10 years and you have a child (of any age).

• The marriage lasted 10 years or more and you were over 45 years old when you divorced.

• The marriage lasted at least 10 years and you were over 45 when your youngest child turned 18.

In all other cases, you receive a widow’s pension until your youngest child reaches the age of 18.

OASI widows’ pensions end at legal retirement age. Based on the highest possible full pension (1912 francs per month), legal marriage age (18), and legal retirement age (64), the pension for a widow with a child can theoretically total up to a maximum of 1,055,424 francs.

Men:

As a man, you only receive a widower’s pension from the time your spouse or ex-spouse dies until your youngest child turns 18. Based on the highest possible full pension of 1912 francs per month and legal childhood (age 0 to 18), a total maximum widowers’ pension for a man with a child could theoretically be as high as 412,992 francs. 

That means the maximum possible pension for widows can theoretically be up to 642,432 francs more than the maximum possible pension for widowers in extreme cases.

9. Accident insurance (UVG) survivor’s pension – women can get more

Men are also disadvantaged compared to women in terms of survivors’ pensions from employer-based accident insurance. Accident insurance (UVG) pays you a pension based on your spouse’s salary if they die in an accident.

Women:

If your spouse dies as the result of an accident, you can claim a lifelong UVG survivors’ pension equal to 40% of their insured salary if you meet one of the following criteria:

• You have at least one child (of any age).

• You are older than 45 at the time of your spouse’s death.

• You are disabled (minimum two-thirds) or become disabled within 2 years of your spouse’s death. 

In all other cases, you can claim a one-time settlement.

Based on the maximum insured annual salary (148,200 francs), legal marriage age (18), and a lifespan of 85 years (the average life expectancy for women in Switzerland), a woman could receive up to a theoretical maximum of 3,971,760 francs in total UVG pension payments.

Men:

As a man, you can receive a lifelong UVG survivor’s pension equal to 40% of your spouse’s insured salary if:

• You have a child: You only receive a pension if you until your youngest child reaches adulthood.

• You are at least two-thirds disabled or become disabled within 2 years of your spouse’s death. Pension entitlements for disabled women and men are identical.

Divorced men and women who meet the criteria can claim a pension equal to 20% of their ex-spouse’s insured salary if their deceased ex-spouse was legally required to support them.

Based on the maximum insured annual salary (148,200 francs) and legal childhood (age 0 to 18), a UVG widowers’ pension could theoretically be as high as 1,067,040 francs for a non-disabled person. That means a widow with a child could theoretically get as much as 2,094,720 francs more than a widower with a child in extreme cases.

However, for disabled individuals, the theoretical maximum pension is identical for women and men.

More on this topic:
Marriage in Switzerland: Financial considerations explained
Divorce in Switzerland: Financial considerations explained