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 610 francs more, on average

In Switzerland, the median salary for women is 8.3 percent less than the median salary for men, according to the most recent statistics from the Federal Statistical Office (FSO). There are many factors that play a role, 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 6666 francs per month.

• Men: 

The median gross salary for men is around 7276 francs per month, or 610 francs more than the median salary for women.

2. Old age pensions – men get 1320 francs more, on average

On average, women receive lower old age pensions than men, as the most recent data from the FSO shows. This is because of the strong correlation between pensions and salaries.

• Women:

The average old age pension from the Old Age and Survivors’ Insurance (OASI) which women receive is 1957 francs per month. The average pension which women receive from occupational pension funds (BVG) is 1871 francs per month.

• Men:

Men receive an average OASI old age pension of 1940 francs and an average occupational pension of 3208 francs per month. So, on average, men receive 1320 francs more per month in combined old-age pensions than women do.

3. 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. It is equal to 3 percent of your annual taxable income, with a minimum penalty of 400 francs per year. Based on the minimum penalty and maximum term, a man would pay a total of 4400 in penalties for not performing military service.

4. Paid parental leave – women can get up to 18,480 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.

• 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 percent of your salary, up to a maximum of 220 francs per day. Based on those figures, the maximum benefit you can claim per maternity is 21,560 francs.

• Men:

As a man, you get just 14 days of paternity leave from the allowance for the other parent (EAE/AAP) when you have a baby. As with women, the compensation is also equal to 80 percent of your salary, up to a limit of 220 francs per day. So the maximum benefit you can claim is just 3080 francs per paternity.

5. Supplemental health Insurance – women pay more

On average, women pay higher premiums for both supplemental outpatient insurance and supplementary hospital insurance. Hospital insurance, in particular, can be much more expensive for women than for men.

• Women:

On average, women pay over 12 percent 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 34 percent more for supplemental hospital insurance, on average, than a man of the same age.

The premiums for supplemental outpatient insurance are also higher for women. Across all of the offers and age groups accounted for in the outpatient insurance comparison, the average premium for women is 7 percent higher.

• Men:

On average, the premiums for complementary health insurance are cheaper for men than for women. One reason for this is that maternity is not a cost factor for men.

6. 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 carried out in 2021 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.

7. 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 (2016 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 1,137,024 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 2016 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 435,456 francs. 

That means the maximum possible pension for widows can theoretically be up to 701,568 francs more than the maximum possible pension for widowers in extreme cases.

8. Accident insurance (UVG) survivor’s pension – women have an advantage

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 percent 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.

• Men:

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

• At the time of becoming a widower, you have a child under the age of 18 (or up to age 25 if the child is completing their initial education).
• 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.

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