Liechtenstein EOR & PEO
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DID YOU KNOW
Liechtenstein is one of the smallest countries in the world, but also one of the wealthiest. Despite its small size, it boasts a robust economy and is known for its stable political environment.
Liechtenstein is also home to some of the most stunning castles in Europe, such as the famous Vaduz Castle, which serves as the official residence of the Prince of Liechtenstein.
Liechtenstein is one of the few countries in the world without a standing army. Instead, it relies on its close ties with neighboring Switzerland for defense and security. The country spends more on art and culture than on defense.
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Working in Liechtenstein
Financial Year Dates
Liechtenstein’s financial year runs from January 1st to December 31st.
Minimum Wage
There is no statutory minimum wage in Liechtenstein. However, wages are generally high due to the country’s strong economy. The average gross monthly salary varies depending on the industry, with financial services and technology sectors paying premium wages.
Standard working hours
The standard workweek in Liechtenstein is 42 hours, typically divided into five 8-hour workdays with a half-day on Fridays. However, some industries may have different arrangements, and flexible working hours are increasingly common.
Overtime
Overtime in Liechtenstein is compensated at a rate of 1.25 times the employee’s normal hourly wage for the first 2 hours beyond regular working hours. Any overtime beyond that is paid at double the standard rate. Overtime is generally limited by the terms of the employment contract or sector-specific agreements.
Holiday Allowance
Employees in Liechtenstein are entitled to a minimum of 4 weeks (20 working days) of paid annual leave. Public holidays are additional to this leave. The country observes several national holidays throughout the year, and some industries may offer additional leave days based on employment contracts or sector-specific agreements.
Sick Leave
Employees are entitled to sick leave, with compensation dependant on the length of employment. Generally, the first 3 days of illness are paid by the employer at full salary, while longer periods of sickness are paid by the social insurance system at 80% of the employee’s salary.
Maternity & Paternity Leave
Maternity leave in Liechtenstein is 16 weeks, with full pay. The first 8 weeks must be taken after childbirth, and the remaining 8 weeks can be taken before or after.
Paternity leave is 2 days, paid at the father’s regular wage.
Public Holiday
Liechtenstein observes several public holidays throughout the year, including:
- New Year’s Day
- Easter Monday
- Ascension Day
- Whit Monday
- National Day
- Christmas Day
- Boxing Day
Social Contributions
In Liechtenstein, both employers and employees are required to contribute to the country’s social security system, which covers health insurance, pensions, and other welfare programs.
Employers:
- Social Security (Pension, Health Insurance, etc.): 10.25%
- Unemployment Insurance: 1.4%
Employees:
- Social Security (Pension, Health Insurance, etc.): 5.3%
- Unemployment Insurance: 1.4%
Income Tax
The income tax rate in Liechtenstein is progressive, with rates ranging from 1.2% to 8.5% for individuals. Residents are taxed on their worldwide income, while non-residents are taxed only on their Liechtenstein-sourced income.
Health Care
Liechtenstein provides high-quality health care, with both public and private healthcare options available. Health insurance is mandatory for all residents, and employees must contribute a portion of their income to the health insurance system. Given the country’s proximity to Switzerland, Liechtenstein’s healthcare standards are among the best globally. Many residents also opt for private insurance to supplement their coverage.
Visas
Liechtenstein has a number of visa options for foreign nationals:
- Work Visa: Foreign nationals seeking employment in Liechtenstein must apply for a work visa, which requires sponsorship from a local employer. Work visas are generally valid for up to one year and can be renewed.
- Business Visa: Entrepreneurs and investors can apply for a business visa to establish or run a business in Liechtenstein.
- Residence Permit: Liechtenstein also offers residence permits for those who wish to reside in the country long-term, whether for employment, family reunification, or other reasons.
13th salary
Liechtenstein does not have a statutory requirement for a 13th salary. However, in certain industries, it is common for employers to provide a bonus or extra salary payments at the end of the year, often as part of the overall compensation package.
Cultural Information
Liechtenstein is a small but culturally rich country with a strong tradition of arts, craftsmanship, and outdoor activities. The country’s alpine location makes it ideal for winter sports, and it’s well known for its stunning landscapes. People in Liechtenstein are known for their precision, orderliness, and efficiency, which translates into their work culture.
Liechtenstein is also home to a thriving arts scene, particularly in music, with classical and contemporary performances regularly held. The country’s residents value their traditions but are also progressive, particularly when it comes to business and technology.
The local cuisine features hearty alpine dishes, such as käsknöpfle (cheese noodles), schnitzel, and rösti. The country also boasts a range of high-quality wines and beers, often enjoyed during the numerous festivals and gatherings held throughout the year.