On Tuesday morning, the Swiss Bank Employees’ Association, a type of banking union in Switzerland, published its wage demand for 2025. The demand was finalized last week «following consultation with various employee representatives.»

This announcement traditionally sets the stage for the annual wage negotiations, which take place individually at each institution between the employee committee and management.

«Depending on the specific situation»

«The SBPV is calling for wage increases of 3 to 5 percent from banks in Switzerland, depending on the specific situation of each institution,» the organization stated.

The demand specifically targets bank employees with lower and middle incomes, who should «receive general wage increases to offset inflation and compensate for the real wage loss suffered in recent years.»

Limited binding power

The SBPV also notes that «long-serving employees whose wages haven’t increased for five years or more» should «receive a wage increase now.»

However, the binding nature of this demand for individual banks and their employee committees remains limited. Unlike in Germany, where a sector-wide collective agreement exists, Swiss labor law in the banking sector is more liberal.

Rising personnel costs

The appetite for significant wage increases may be limited across many institutions as the interest rate margin windfall is coming to an end. Additionally, banks have already had to absorb rising personnel costs across the board in recent years.

The SBPV has framed its demand in the context of «varying levels of real wage losses over the last five years and the specific earnings situation of each bank.»