Performance pays off: Top performers receive a pay raise that is nearly twice as high
Swiss companies are raising wages by an average of 2.3 % in 2026—and plan to increase them by only slightly more, to 2.4 %, in 2027. More important than the budget amount is the distribution: According to the latest Salary Budget Planning Report from WTW, top performers receive nearly twice as much as employees with average performance ratings.
Swiss companies are raising wages by an average of 2.3 % in 2026—and are planning only a marginal increase to around 2.4 % for 2027. What is changing significantly, however, is the nature of the distribution: individual performance is becoming a much more important criterion. This is shown in the latest Salary Budget Planning Report from WTW.
Performance as a Decisive Factor
The findings are clear: 97 % of Swiss companies that offer individual pay raises take personal performance into account. The range is considerable. Employees with the highest performance ratings will receive an average pay raise of about 3.9 % in 2026. For above-average performance, the increase is about 3.1 %; for average performance, about 2.0 %; and for below-average performance, only 0.8 %.
«The average pay increase is only part of the picture in the labor market. Companies are allocating their payroll budgets in an increasingly differentiated manner. For employees, individual performance—as well as the importance of their role and skills to the company—is becoming a more significant factor in determining how much their pay actually increases,» says Anna Ylikorkala, Senior Consultant in the Work and Rewards practice at WTW Switzerland.
Minor differences between the functional levels
Across all hierarchical levels, the analysis reveals virtually no differences. Managers do not automatically receive higher percentage adjustments. Rather, the average wage increases for all employee groups examined fall within a narrow range:
| Functional Level | Effective in 2026 | Planned for 2027 |
|---|---|---|
| All employee groups | 2.3 % | 2.4 % |
| Executive | 2.1 % | 2.2 % |
| Supervisory / Management | 2.3 % | 2.4 % |
| Professional | 2.3 % | 2.4 % |
| Support Staff | 2.2 % | 2.2 % |
| Production / Manual Labor | 2.0 % | 2.1 % |
Source: WTW Salary Budget Planning Survey, July 2026 Edition, Switzerland; includes zero and negative values.
2027: No major changes expected
For 2027, Swiss companies are currently planning an average wage increase of approximately 2.4 % across all employee groups—only slightly more than the 2.3 % from the previous year. The differences in planning remain small even among the individual job levels.
«We do not expect any major changes in salary budgets for 2027. Historically, average increases in Switzerland have hovered around 2 % for many years. Today, companies are focusing less on the size of the budget and more on how it is specifically allocated. What matters most is how companies allocate their limited budgets. Those who want to retain critical skills and reward performance must differentiate more effectively and align their compensation decisions specifically with business priorities,» said Anna Ylikorkala.
Low inflation supports real wages
A key factor behind the moderate nominal wage increases is the favorable inflation environment in Switzerland. The analysis is based on an expected consumer price inflation rate of approximately 0.6 % for 2026 and 2027. Measured against this, the average wage increases are clearly in positive territory.
«Swiss companies are in a comfortable position when it comes to wage trends. Low inflationary pressure makes broad-based wage adjustments less necessary than in other international markets,» explains Anna Ylikorkala.
International: Lower in nominal terms, ahead in real terms
The international comparison highlights Switzerland’s unique position. According to the WTW report, the average wage budget increases for 2026 are 2.7 % in France, in Germany 3.1 %, in the United Kingdom and the United States 3.4 % each, in China 3.9 %, in Brazil 6.4 %, and in India 8.2 %. However, these nominal figures are offset by significantly higher inflation: The WTW report projects inflation of 3.0 % in Germany, 3.3 % in the U.S., and 3.9 % in the U.K. for 2026.
In real terms, the picture is reversed: In Switzerland, a 2.3 % wage increase and approximately 0.6 % inflation result in real growth of about 1.7 percentage points. In Germany and the U.S., the figure is about 0.1 percentage points each, while in the U.K., the figure is actually negative.
About the study
The Salary Budget Planning Report is produced by WTW’s Rewards Data Intelligence Practice. The survey was conducted from March through May 2026. A total of 34,024 responses were received from companies in 156 countries. In Switzerland, 539 organizations participated in the survey.
More information at wtwco.com.
