Around 10 million francs Salary system change at the federal government causes millions in additional costs
Criticism of the high federal salaries is unrelenting: although the federal government wants to bring its salary structure closer to the market from 2027, experts expect additional costs in the millions.
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- Federal employees earn significantly more than employees in the private sector.
- The Federal Council introduced a new salary system in 2025 that limits automatic increases.
- Although the reform model will initially incur additional costs of around CHF 10 million, the federal government expects to make long-term savings.
Three years ago, a study by the Institute for Economic Policy (IWP) showed that federal employees earn on average 11.6 percent more than employees in the private sector with comparable jobs. Since then, the salaries of federal employees have been criticized.
"We must ensure that more well-trained people work in the private sector and alleviate the shortage of skilled workers there," UBS CEO Sergio Ermotti also told theTages-Anzeigernewspaper. Many would go straight into administration after their studies, where they would earn better and have an almost guaranteed job.
The high salary level at the federal government is closely linked to the current salary system, which provides for automatic annual increases of up to 4 percent. In 2024, 96.7 percent of federal employees received a good or very good staff appraisal - and therefore a pay rise, the newspaper continues.
Additional costs in 2027
In May 2025, the Federal Council responded to the growing criticism with a new, "more market-oriented" salary model. In future, salary increases will be smaller and it will only be possible to reach the maximum salary for exceptional performance.
Nevertheless, HR managers are expecting additional costs in the introductory year 2027: because starting salaries will be increased to compensate for the discontinuation of automatic salary increases, individual employees could receive four-digit additional amounts per year as early as 2026.
The Federal Office of Personnel (FOPER) estimates the additional costs at around CHF 10 million, but the new system is expected to bring savings of up to CHF 35 million in the medium term, writes the Tages-Anzeiger. In the short term, however, the discussion about the high salaries of civil servants is likely to continue: in 2024, the average salary in the Confederation exceeded CHF 130,000 per year for the first time. A record that is expected to fall again in 2027.