Talent Wiki - Liechtenstein
Your quick guide on talent and labor compliance norms in Liechtenstein
Capital
Vaduz
Currency
Swiss franc (CHF)
Languages
German
Payroll Frequency
Monthly
GDP per Capita
$270,555.90
Employer Tax
8.3%
Talent Overview
Liechtenstein is a European microstate located near Switzerland, to which the country shares the same national currency. They are characterized as having a prosperous, free-enterprise economy and have been a member of the European Free Trade Association (EFTA) and European Economic Area (EEA) since the 90’s. Their strategic location and active participation with the European organizations have brought forth many small to large businesses in the country, thereby, resulting in the country having one of the highest per capita income worldwide.
Major economic hubs:
Schaan, Vaduz, Triesen
Skills in demand:
Information Systems ; Data and Application Security ; Business Process Management ; Data Science
Local Universities
Below are the top universities in Liechtenstein;
Salary Data
Below are average monthly salaries for some positions in Liechtenstein:
| Job Title | Average Monthly Salary (in CHF) | Average Monthly Salary (in USD) |
| Accountant | 3,750 | 4,060 |
| Software Engineer | 5,100 | 5,521 |
| Financial Analyst | 7,240 | 7,838 |
| Graphic Designer | 3,380 | 3,659 |
| Project Manager | 6,380 | 6,907 |
| Sales Manager | 8,970 | 9,711 |
| Customer Service Representative | 1,940 | 2,100 |
Talent Sourcing Tips
Top Local Job Boards:
OstJob.ch ; TopJob ; Jobscout24
Number of LinkedIn users:
20,110
Top Recruitment Agencies:
Employing in Liechtenstein
Liechtenstein’s labor law empowers employers to provide the best for their employees and business. But it also requires that businesses observe the minimum requirements indicated in their employment code. The following section will guide you through the country’s employment provisions.
Employee Contract
Employment contracts in Liechtenstein must be written in the German language. The contract must contain the complete details of the employee’s job description, duties and responsibilities.
Probation Period
The probation period for new employees in Liechtenstein is generally one month
Public and Provincial Holidays
| Date | Name | Type |
| 1 Jan | New Year’s Day | National holiday |
| 6 Jan | Epiphany | National holiday |
| 2 Feb | Candlemas | National holiday |
| 19 Mar | St Joseph’s Day | National holiday |
| 10 Apr | Easter Monday | National holiday |
| 1 May | Labour Day/May Day | National holiday |
| 18 May | Ascension Day | National holiday |
| 29 May | Whit Monday | National holiday |
| 8 Jun | Corpus Christi | National holiday |
| 15 Aug | Liechtenstein National Day | National holiday |
| 8 Sep | Nativity of Our Lady | National holiday |
| 1 Nov | All Saints’ Day | National holiday |
| 8 Dec | Feast of the Immaculate Conception | National holiday |
| 25 Dec | Christmas Day | National holiday |
| 26 Dec | St Stephen’s Day | National holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 4 weeks | Yes |
| Sick Leave | 360 days | Yes |
| Maternity Leave | 20 weeks | Yes |
Payroll
Payroll Cycle
Salaries in Liechtenstein are released monthly.
Minimum Wage
There is no minimum wage rate required for employees in Liechtenstein.
Overtime Pay
Overtime work in Liechtenstein must be compensated with an additional 25% on the employees’ regular hourly rate.
Bonus
13th Month Pay
A 13th month pay is not mandatory in Liechtenstein.
Employee Benefits
Below are some of the benefits for employees in Liechtenstein:
- Unemployment Insurance
- Healthcare Benefits
- Sickness and Invalidity
- Retirement and Pension
- Statutory Leaves
Taxes
Employer Payroll Tax
| Type of Contribution | Tax Rate |
| Old age, survivors’, and disability insurance | 4.9% |
| Family compensation fund | 1.9% |
| Unemployment insurance | 0.5% |
| Occupational accident insurance | 1% |
Employee Payroll Tax
| Type of Contribution | Tax Rate |
| Old age, survivors’, and disability insurance | 4.7% |
| Unemployment insurance | 0.5% |
Employee Income Tax
| National tax rate | Single person’s income (CHF) | Deduction from result (CHF) | Single parent’s income (CHF) | Deduction from result (CHF) | Married couple’s income (CHF) | Deduction from result (CHF) |
| Personal exemption | 15,000 | – | 22,500 | – | 30,000 | – |
| 1% up to | 20,000 | 150 | 30,000 | 225 | 40,000 | 300 |
| 3% up to | 40,000 | 550 | 60,000 | 825 | 80,000 | 1,100 |
| 4% up to | 70,000 | 950 | 105,000 | 1,425 | 140,000 | 1,900 |
| 5% up to | 100,000 | 1,650 | 150,000 | 2,475 | 200,000 | 3,300 |
| 6% up to | 130,000 | 2,650 | 195,000 | 3,975 | 260,000 | 5,300 |
| 6.5% up to | 160,000 | 3,300 | 240,000 | 4,950 | 320,000 | 6,600 |
| 7% up to | 200,000 | 4,100 | 300,000 | 6,150 | 400,000 | 8,200 |
| 8% above | 200,000 | 6,100 | 300,000 | 9,150 | 400,000 | 12,200 |
VAT
The general VAT in Liechtenstein is 7.7%
Offboarding & Termination
Employment contract under an indefinite period may be terminated by either the employer or employee. In both cases, a notice period must be observed. However, a notice may not be necessary if the decision to terminate is due to a just cause or when an employment contract is under a definite period.
The Notice Period for employees under the trial period is seven days. For employees outside probation, the notice period will be 1 to 3 months.
Severance Payment will be based on what is agreed upon in the severance contract. An employee’s outstanding benefits such as leaves and bonuses will be included in the calculation.
Visa and Immigration
Foreign employees must secure a work permit from the Liechtenstein’s Migration Office to legally work in the country. The work permit will be valid for a year and can be renewed.
Additionally, a residence permit must also be obtained to be able to stay in the country. Liechtenstein has an annual quota of 72 residence permits being issued every year, of which, 56 are allotted for foreigners who have gained rightful employment. Residence permit is valid for 5 years.
