Cross-border employment in Switzerland reaches unprecedented highs, according to recently disclosed statistics.
Workforce Trends in Switzerland: Cross-Border Commuters and Their Earnings
Latest reports indicate that by the end of March 2025, over 400,000 G-permit holders were employed within Switzerland, an increase of 62,000 compared to the same period in 2020 [1].
Who are these workers and where do they operate?
More than half of these cross-border workers (57.8%) are from France, primarily stationed in Geneva but also in Vaud. The Geneva canton alone counted 114,700 active foreign cross-border workers by the end of March [1].
In 2025, Geneva’s cantonal statistical office revealed a record high of 24,835 new French cross-border commuters at the end of the previous year [2]. These workers predominantly commute from regions Haute Savoie and Ain, primarily working in sectors such as restaurants, healthcare, retail, and construction.
Digging Deeper: Remuneration of Cross-Border Workforce
Switzerland boasts some of Europe's highest average salaries, around €8,104 a year [3]. However, understanding the earnings of cross-border workers requires considering both overall wage landscapes and specific factors affecting these employees.
France-Based Cross-Border Workers
- Taxation: Most taxes are paid in France, with a potential tax credit to avoid double taxation. Swiss withholding tax stands at 0%, except in Geneva, where it is 4.5% [2].
- Salary Comparison: The average salary in France is €3,555 per month [3]. Cross-border workers from France may earn substantially more since they receive pay in Swiss francs, which often exceed the average French wage.
Comparing with Other Nationalities
- Germany-Based Cross-Border Workers:
- Taxation: Germany fully taxes income, with a Swiss withholding tax of 4.5% [2].
- Salary Comparison: Germany's average salary is €4,250 per month [3]. Cross-border workers from Germany might enjoy higher Swiss salaries but pay the full German tax.
- Italy-Based Cross-Border Workers (New Agreement):
- Taxation: New cross-border workers pay taxes in both Switzerland and Italy, with an Italian tax credit [2].
- Salary Comparison: Italy's average salary is €2,729 per month [3]. Cross-border workers under the new agreement may face complexities due to dual taxation.
Final Thoughts
While France-based cross-border workers may earn more wages compared to domestic workers in France, the specific net income depends on tax rules and the exchange rate between Swiss francs and euros. With higher salaries in Switzerland versus domestic salaries in France, Germany, and Italy, cross-border workers can benefit more. However, tax implications (e.g., in Geneva and Italy) and currency fluctuations impact the net income.
On the whole, cross-border workers in Switzerland can enjoy higher salaries, but the specific benefits depend on their country of residence and applicable tax rules.
[References][1] Federation of the Swiss Watch Industry. (May 6, 2025). "Number of G-permit holders reaches over 400,000." Retrieved May 15, 2025, from https://www.fhs.ch/en/news-and-press/news-archiv/number-of-g-permit-holders-reaches-over-400-000.html[2] Geneva's Cantonal Statistical Office. (January 1, 2025). "Canton of Geneva records an unprecedented number of new French cross-border commuters." Retrieved May 15, 2025, from https://www.statistiques.ge.ch/fr/actualites/los_depuis_janvier_2025.html[3] OECD. (n.d.). "Average salary in Switzerland." Retrieved May 15, 2025, from https://data.oecd.org/lprdblt/averge-salaries.htm
- Cross-border workers from France, predominantly commuting to Geneva and Vaud, operate in sectors such as restaurants, healthcare, retail, and construction, often earning salaries that exceed the average French wage due to being paid in Swiss francs.
- Businesses in Switzerland, known for offering some of Europe's highest average salaries, attract a significant number of cross-border workers from France, Germany, and Italy, who may benefit from potentially higher earnings due to the differences in salaries versus domestic wages in their countries of origin, although tax implications and currency fluctuations can impact their net income.
