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Overview
Swiss franc (CHF)
CURRENCY
Vaduz
CAPITAL
twoweekly
PAYROLL FRECUENCY
15
PUBLIC HOLIDAYS
0 to 12.5
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Liechtenstein
0% - 12.5%
Flat rate
0% - 12.5%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 3.95%
AHV
0%- 0.75%
IV
0% - 4.7%
Total Employee Cost
Employee Income Tax in Liechtenstein
Worker Income Tax
0%
Up to 15.000 CHF
1%
15.001 – 20.000 CHF
3%
20.001 – 40.000 CHF
4%
40.001 – 70.000 CHF
5%
70.001 – 100.000 CHF
6%
100.001 – 130.000 CHF
6.5%
130.001 – 160.000 CHF
7%
160.001 – 200.000 CHF
8%
More than 200.001 CHF
Minimum Wage in Liechtenstein
Payroll Contributions in Liechtenstein
Payroll Cycle
Salary in Liechtenstein are set to release monthly. Businesses use the services of an EOR or PEO to provide payments for their employees.
13th Salary
The payment of the wage for the thirteenth or fourteenth month is not within the employment laws. However, bonus arrangements between employees and employers are possible. To arrange this type of bonuses, companies can hire PEO services and obtain HR and payroll outsourcing solutions.
Employee Benefit in Liechtenstein
There are no other benefits in the region according to the law
Visa and work permit in Liechtenstein
The Foreigner's Act in Liechtenstein regulates the immigration procedure. It is permissible for Swiss citizens to seek employment in Liechtenstein without the need for a visa or other authorization. Furthermore, those who reside in EEA nations may work with a permission if they enroll with the Migration and Passport Office in 10 days of beginning their new job.
The employee must, however, apply for a Liechtenstein Work Visa if they are from a nation other than those listed above.
VAT in Liechtenstein
The VAT in the region is 7.7% and with an Employer of record in Liechtenstein, companies can abide by tax laws.
Working Hours in Liechtenstein
General
The following are the typical working hours:
- 45 hours are required of employees in industrial firms, office workers, technical staff, and other employees, including salespeople in large retail establishments (retail sector).
- 40 hours for teenagers between the ages of 15 and 18.
- For all other employees, 48 hours.
Overtime
There are two circumstances in which employers may request that workers put in more hours:
- If a pressing need exists for the same.
- Whenever there is no pressing need, if employees so choose.
But, the additional time cannot last longer than two hours every day.
Workers should not be required to put in more than 48 hours per week on average over the course of four months without receiving overtime pay.
Also, workers who choose overtime labor shouldn't be forced to put in more than 48 hours each month on average. To make up for overtime, there are two ways:
- Free time.
- In the absence of a written agreement to the contrary, a bonus of at least 25%.
Working Week
From Monday to Friday.
Employee Termination in Liechtenstein
Termination Process
In general, each party to a contract of employment has the right to provide notice at any time, with or without cause, as long as the mandatory or contractually set notice period is met. Yet, there are times when the employee cannot be terminated (known as "restricted periods").
The employer must also make sure that termination cannot be viewed as abusive. In most cases, there is no requirement to provide justification for terminating an employment contract. Nevertheless, the worker has the capacity to receive a written explanation of why they were fired, and the employer must provide one upon request.
Notice Period
Both parties are required to provide the other party a reasonable amount of notice before terminating the employment agreement. The length of the notice period will be set by the employee's years of service, unless mutually agreed upon otherwise:
- 1 year: One month.
- 2 – 9 years: Two months.
- Over 9 years: Three months.
Severance Pay
There is no statutory requirement for severance pay.
Nonetheless, a severance payout, compensation for a non-competition agreement, or other indemnification may be a part of the employment contract.
Probation Period
The trial period often only lasts one month. However, in accordance with Liechtenstein employment legislation, it must be confirmed by a contract of employment and may only be prolonged for a maximum of three months. Additionally, the probationary term may be extended by an additional three months if the employee becomes ill or is injured while on it.
Employee Leaves in Liechtenstein
Paid Time Offs
Below is Liechtenstein's vacation leave policy for employees:
- Employees working 5 days a week are entitled to at least 20 vacation days with pay each year.
- Employees working 6 days a week have the right to 24 days of leave with pay per year.
- Workers who are 20 years of age or younger have the right to at least 25 annual leave days with pay.
- Employees with disabilities have the right to an additional five days of leave.
- Employees are free to request extended leave beyond the paid leave. Employers must give the request some thought. Only if the employer requires a certain employee to be present at work during that time or if another employee's request for vacation is more urgent might they deny this request.
Public Holidays
There are 15 national holidays throughout the year.
Vacation Holidays
There are 20 vacation holidays throughout the year.
Sick Days
From the 2nd day of being ill until the day they return to work, workers have the right to obtain their leave. Nonetheless, sick pay is provided for up to 720 days over a period of 900 days.
Paternity Leave
Currently, there is no statutory paternity leave.
Paternal Leave
There are no mandatory parental leave guidelines.
Other Leave
Workers can take a maximum of three days off in order to care for a sick family member.
Maternity Leave in Liechtenstein
The following table summarizes the key aspects of maternity leave in the region. Employees who are pregnant are subject to 20 weeks of leave. Nonetheless, at least 16 weeks should be taken off after delivering.
In addition, employees who are pregnant are eligible to income-related compensation of up to 80% of their lost wages. Companies working with a Professional employment organization, can obtain payroll outsourcing services to pay these and other compensations.
There are 140 leave throughout the year.