Introduction
As we approach the end of the year, discussions about the true value of monthly income are gaining momentum. A recent analysis by Deutsche Bank, using data from Numbeo, reveals significant differences in average monthly salaries across major global cities for 2025. These disparities are not solely due to job types but also influenced by factors such as cost of living, currency strength, and each country’s productive structure.
Swiss Cities Lead the Ranking
In 2025, Swiss cities dominate the global ranking. Geneva leads with an average monthly salary of $7,984, followed by Zurich at $7,788, and San Francisco rounds out the top three with $7,092. However, San Francisco has experienced the most significant salary decline over the past five years.
Reasons for Switzerland’s High Ranking
Several factors contribute to Switzerland’s position at the top of the list. The country boasts a highly productive economy with high-value sectors like banking and financial services, pharmaceuticals, biotechnology, insurance, and advanced technology. Additionally, Switzerland has a skilled labor force, low unemployment rate, strong institutional stability, a robust currency like the Swiss franc, and a high cost of living that drives up nominal wages.
Other High-Income Cities
Among other cities with high monthly incomes are Luxembourg ($6,156), Boston ($5,940), Chicago ($5,203), and New York with a monthly salary of $5,128.
Salary Trends Over the Years
While most cities in the ranking show salary increases over the past five years, several have experienced significant declines. The Cairo leads with a 40.1% reduction, followed by Tokyo with a 13.1% drop, despite being a developed economy.
These variations are not solely due to labor market conditions but also currency behavior. The Egyptian pound has devalued by over 60% against the dollar in recent years, while the Japanese yen has fallen by around 30%. This currency depreciation reduces reported salaries even if local incomes have grown.
New York City stands out as its average salary dropped from $6,023 in 2020 to $5,128 this year, reflecting a 14.9% decline. San Francisco also saw a reduction of approximately 10.6%.
Some of these fluctuations may be attributed to post-pandemic compensation changes, such as increased bonuses, stock options, or remote work, which may not uniformly reflect in salary measurements.
Where Salaries are Growing the Most
Conversely, some cities have nearly doubled their average salaries in recent years. Varsovia leads with a 95.3% increase, followed by Istanbul with 94.5%, and Bangalore with 80.7%. However, these increases start from low salary bases, so these cities still aren’t among the world’s best-paying ones.
Generally, larger salary increases occur in cities that already had high wages. Luxembourg added $1,721 monthly between 2020 and 2025, while Geneva increased by $1,608 during the same period.
Global Salary Gap
This scenario highlights the global salary gap, with wealthy global hubs experiencing continued growth from already high wages and emerging cities showing significant percentage increases, which are still insufficient to close the gap. This underscores the importance of cost of living differences across countries.
Key Questions and Answers
- Q: Which cities have the highest average monthly salaries in 2025? A: Geneva ($7,984), Zurich ($7,788), and San Francisco ($7,092).
- Q: Why do Swiss cities lead in average salaries? A: Switzerland’s high-value sectors, skilled labor force, low unemployment, strong institutional stability, robust currency, and high cost of living contribute to its top ranking.
- Q: Which cities have experienced significant salary declines? A: The Cairo has seen a 40.1% reduction, followed by Tokyo with a 13.1% drop.
- Q: How have salaries changed in New York and San Francisco? A: New York’s average salary dropped 14.9% from $6,023 in 2020 to $5,128 this year. San Francisco experienced a roughly 10.6% reduction.
- Q: Which cities have seen the most significant salary increases? A: Varsovia leads with a 95.3% increase, followed by Istanbul (94.5%) and Bangalore (80.7%).
- Q: What factors contribute to the global salary gap? A: The disparity is influenced by cost of living differences, currency fluctuations, and varying economic growth rates across countries.
