The United States (U.S.) may still be the promised land, but it is not the country where citizens have the highest salaries. According to Eurostat research, the average annual salary in the amount of about 54 thousand euros, which is the amount in the U.S. is exceeded in as many as ten European countries. According to Eurostat, in 2022, hourly wages in the European Union (EU) increased by 4.4 percent, mostly in activities related to mining, electricity, and technical activities. The country whose citizens have the highest salaries is Switzerland. In 2022, the average salary in this country was 106,839.33 euros. But aside from the difference in wages between Switzerland and America, most companies in Switzerland allow employees between four and five weeks of paid vacation, which is double and more than in the U.S., which provides an average of two weeks of paid vacation.
Switzerland, writes the Swiss Observer, has one of the lowest average weekly working hours in the OECD – under 36 hours a week, which the Swiss make good use of, which is why they have one of the highest productivity rates in the world.
The Swiss economy is one of the most stable in the world thanks to a strong banking sector and low unemployment rates. Although it is not a tax haven, writes the Swiss Observer, this country is known for its relatively low taxes, which allow residents to keep most of their income.
The country collects relatively less tax as a percentage of GDP compared to other developed economies, with Switzerland collecting 27.8 percent of GDP in taxes compared to 34 percent on average among OECD countries.
While income tax rates vary by region and income level, they typically range from one to 13 percent, compared to rates of 10 to 37 percent in the U.S..
Switzerland also has no capital gains tax and does not tax assets such as cash, securities or stock dividends. Reasonable taxation is an important driver of a high standard of living in Switzerland.
Eurostat ranked Iceland in second place in terms of annual salary, where the average annual salary exceeds 80,000 euros, Luxembourg is third with a little more than 79,000 euros, and Norway is fourth, where employees earn about 74,000 euros annually.
According to data from the International Monetary Fund (IMF), in the 10 richest countries in the world, the purchasing power per inhabitant is more than 110,000 dollars. Another reality that does not resemble Switzerland or the other nine rich countries, shows that in the 10 poorest countries in the world (Yemen, Madagascar, Liberia, Malawi, Niger, Mozambique, Democratic Republic of Congo, Central African Republic, Burundi and South Sudan), the average purchasing power per per resident is less than 1,500 dollars, Forbes writes.
E.Dz.
