The pay gap between the highest and lowest-paid workers in Switzerland increased in 2023, with top managers earning on average 143 times more than their lowest-paid employees, according to a study released by trade union, Unia on Monday.

This disparity grew from 139 times in 2022, with UBS, the country's largest bank, reporting the most significant gap.

Compensation at UBS has sparked political debate, with Swiss Finance Minister Karin Keller-Sutter criticising the 14.4 million Swiss Franc salary of UBS Chief Executive Sergio Ermotti earlier this year. 

UBS has defended its pay practices, stating that salaries are aligned with market standards based on role, experience, and location, Reuters reports.

The bank has raised salaries for employees in Switzerland, up to and including middle management, by 2.25%, a modest increase compared to the rest of the financial sector. 

According to the report, drug maker Novartis had the second highest salary gap, followed by food producer Nestlé in third place.

For comparison, in Britain last year, the average CEO of a FTSE 100 company earned 120 times more than the national median salary, according to the High Pay Centre think tank. 

The current Swiss pay gap is the widest since 2019, when CEO salaries were 148 times higher than those of the lowest-paid workers, according to Unia.

“The gaps between the highest and lowest paid workers are huge and getting bigger,” stated Unia economist, Noemie Zurlinden.

The report's authors noted that inequality in Switzerland has continued, despite companies’ financial capacity to offer higher wages, given their substantial dividend payouts and share buybacks. 

While top earners continue to see increased compensation, those with low and middle incomes are experiencing diminished purchasing power, as real wages have remained stagnant due to inflation, according to Zurlinden.

“It cannot be justified that the CEOs earn so much more than ordinary workers. A better redistribution of the economic gains is especially important in times of rising costs of living,” she said.