I think it's interesting to compare Switzerland with the neighbouring countries (e.g. France and Germany). I don't know about other companies, but Google Zürich pays much more than Google Paris or Google Berlin/Munich.

I think it's likely that the difference in labour laws is a contributing factor. Switzerland has very little by way of worker protection, instead placing a significant emphasis on unemployment insurance (Arbeitslosenversicherung).

Cost of Living is much higher in Switzerland.

Cost of living is usually higher in areas with higher wages, because it means that residents have more money to spend on living.

Right, and Google explicitly doesn't model for cost of living in its comp philosophy.

They use per market pricing instead, which roughly works out to the same thing in the long term, while not being subject to short term fluctuations.

I don't see the "assuming... solely" in their post at all. Seems like they are just pointing out a factor, could be one of many.

Where did they make that assumption at all?

How does the parent commenter acknowledging a single factor in a situation lead you to believe that they assume no other contributing factors exist?