Poverty is defined as a lack of resources (material, cultural and social) such as to exclude persons from the minimum acceptable way of life in the country in which they live.
Indicator (description) |
Value |
Year |
|---|---|---|
Poverty rate |
8.7% | 2021 |
At-risk-of-poverty rate |
14.6% | 2021 |
Material and social deprivation rate |
5.2% |
2021 |
Measuring poverty
In the absence of an unequivocal definition, measuring poverty results in a number of statistical approaches. We therefore distinguish between monetary poverty, poverty in terms of living conditions, subjective poverty, poverty before and after social transfers etc. Within the scope of monetary poverty, two types of approaches may be used: the absolute or the relative approach. The FSO also uses a non-monetary indicator to measure deprivation.
Poverty (absolute concept)
Risk of poverty (relative concept)
Material and social deprivation
Poverty before social transfers
Dynamics of poverty
According to the “absolute” poverty concept, poverty is defined as falling below a defined subsistence level. To measure poverty in Switzerland, the FSO uses a poverty threshold based the social subsistence level, according to the recommendations of the Swiss Conference of Cantonal Ministers of Social Affairs (SODK). Therefore, people are considered as poor if they do not have the financial means to buy goods and services that are necessary for a socially integrated life. A poverty rate defined in this way is suitable as a sociopolitical target value as financial support for poor people or households is directly translated into a measurable reduction of poverty. In Switzerland, the social subsistence level is defined in the guidelines of the Swiss Conference for Social Welfare (SKOS), which serve as a reference for assessing social assistance entitlements.
At international level, the calculation of the at-risk-of-poverty rate that refers to a "relative" threshold is usual. Here persons considered at risk of poverty are those who live in a household whose financial resources (excluding assets) are considerably lower than the usual income level in the country that they live in. Poverty is therefore seen as a form of inequality; whether a person is at risk of poverty depends not only on his or her own economic situation (or that of his or her household), but also on the standard of living in the country concerned. As this indicator may be calculated everywhere in the same way, regardless of a country's own factors such as social legislation, it is appropriate for international comparisons.
Information on deprivation is an important addition to the monetary poverty indicators. It tells us whether a person has a lack, for financial reasons, in areas of daily life that most people in Europe consider desirable or even necessary to lead a decent life.
The poverty rate before social transfers measures the proportion of the Swiss population that would be affected by poverty if no social transfers were allocated. A comparison between the poverty rates before and after social transfers enables conclusions to be made as to what extent these benefits contribute to reducing income poverty.
Analyses of the dynamics of poverty allow to examine the temporal dimension of poverty. Using the longitudinal data from the SILC survey that interviews the same households over a period of four consecutive years, it is possible to analyse the duration for which individual persons in Switzerland have been affected by poverty.
In the publication "Poverty In Switzerland: Concepts, results and methods” (available only in French or German) the different approaches and methods of the FSO’s poverty statistics are described in detail. Furthermore the main results are updated regularly (see “Further information/publications”).
More detailed studies on the subject of poverty
To complete the annually updated poverty indicators, the FSO also conducts more in-depth studies on the subject of poverty, taking a closer look at certain topics or population groups. These publications can be downloaded free of charge at “Further information/publications”.
Poverty in old age
Childhood poverty and material deprivation
In Switzerland, most people aged 65 or over take a positive view of their financial situation. Low incomes can often be supplemented by financial reserves. There is considerable variation among the older population, however. People whose income mainly comes from the 1st pillar fare worse in several of the observed areas of life. There are also several signs in those with no post-compulsory education, those who live alone and foreign nationals that financial resources in old age are scarce or insufficient.
In two publications on the topic of "Poverty in old age" (2014 and 2020) the FSO offers an integrated view of the income, consumption and wealth of the older population in Switzerland (see “Further information/publications”). In addition, selected objective and subjective indicators on the financial situation of the elderly population are updated annually in the form of an Excel table (available in German and French).
Additional information on the older population is available in the cross sectional topic "Ageing in Switzerland".
The negative effects of childhood poverty can be immediate and long-term. To take into account the multidimensional character of childhood poverty, two income-based poverty indicators are combined in the FSO report with details on material belongings and housing conditions. The evaluations are based on the Statistics on Income and Living Conditions (SILC) 2014.
The publication and statistical encyclopaedia tables are available in French and German.
Further information
Statistical sources and concepts
Contact
Federal Statistical Office Section Income, Consumption and Living ConditionsEspace de l'Europe 10
CH-2010 Neuchâtel
Switzerland
- Tel.
- +41 58 463 68 04