Your quick guide on talent and labor compliance norms in Liechtenstein
Swiss franc (CHF)
GDP per Capita
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
Below are average monthly salaries for some positions in Liechtenstein:
|Job Title||Average Monthly Salary (in CHF)||Average Monthly Salary (in USD)|
|Customer Service Representative||1,940||2,100|
Salaries in Liechtenstein are released monthly.
There is no minimum wage rate required for employees in Liechtenstein.
Overtime work in Liechtenstein must be compensated with an additional 25% on the employees’ regular hourly rate.
A 13th month pay is not mandatory in Liechtenstein.
Below are some of the benefits for employees in Liechtenstein:
|Type of Contribution||Tax Rate|
|Old age, survivors’, and disability insurance||4.9%|
|Family compensation fund||1.9%|
|Occupational accident insurance||0.1%|
|Type of Contribution||Tax Rate|
|Old age, survivors’, and disability insurance||4.7%|
|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)|
|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|
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.
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