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Expand your global workforce in Liechtenstein

Your guide to the employment landscape, working customs and local labor laws in

Capital

Vaduz

Currency

Swiss franc (CHF)

Languages

German

GDP per Capita

$185,083.30

Employer Tax

7.4%

Payroll Frequency

Monthly

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

Top local universities in Liechtenstein

Uni1 5

Universität Liechtenstein

RANKING

Local: 1

World : 3960

Uni2 5

Internationale Akademie für Philosophie

RANKING

Local: 2

World : 8915

Uni3 4

Private Universität im fürstentum Liechtenstein

RANKING

Local: 3

World : 9082

Top Local Job Boards:

OstJob.ch ; TopJob ; Jobscout24

Number of LinkedIn users:

20,110

Top Recruitment Agencies:

rexx Recruiting ; Ganci Partners 

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

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

Employ in Liechtenstein

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

 

Leave Compliance

Payroll in Liechtenstein

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Payroll cycle

Salaries in Liechtenstein are released monthly.

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Minimum wage

There is no minimum wage rate required for employees in Liechtenstein.

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Overtime pay

Overtime work in Liechtenstein must be compensated with an additional 25% on the employees’ regular hourly rate.

How taxes work

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 0.1%

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%

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

Employee offboarding

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. 

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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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