Understanding Employment Norms in Liechtenstein: A Comprehensive Guide
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Hiring in Liechtenstein? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Liechtenstein.

Employment Norms in Liechtenstein

The landlocked country of Liechtenstein is the fourth smallest state in Europe. Despite its small size, it has a very strong financial sector. It ranks high in ease of doing business ranking, and that's why it attracts entrepreneurs. The employment norms of Liechtenstein are framed by the General civil code of the country, regulations defined in the Ministry of Industry, Manufacturing and trade or LAw(ArG), and through collective and individual agreements.

General Information:

  • The Liechtenstein currency is the Swiss Franc (CHF).
  • Vaduz is the capital of Liechtenstein
  • German is the official language of Liechtenstein. It is legally mandatory to draft documents in German, supported by an English translation.
  • The latest official GDP figures are for the year 2020. As per the official record, in 2020 Liechtenstein's GDP was 6.87 Billion US Dollars.
Liechtenstein map

Table of Contents

  • Agreements
  • Onboarding Process
  • Visa
  • Minimum Wage
  • Payroll Cycle
  • Annual Bonus
  • Health Benefits
  • Working hours and overtime
  • Leaves
  • Social Security
  • Taxes for Employers
  • Taxes for Employees
  • Probation
  • Termination
  • Severance Pay
  • Employees or Contractors
  • Final Words


  • There is no statutory requirement in Liechtenstein that agreements have to be in writing it can be oral also.
  • It is a common practice is to have a written agreement. The language of the contract/agreement should be German.
  • A written agreement usually includes:-
    • Personal details of the employer and the employee- name, residence, office address.
    • Date of commencement of employment.
    • Details of employment type- full-time, part-time, consultant.
    • Working hours, breaks, overtime details.
    • Workplace information- the type of everyday work, and performance expected from employees.
    • Functional title/rank of the employee.
    • Wages, including details of payroll cycle, gratuities, and expenses.
    • Terms of termination, notice period, and severance pay.
    • Holidays- annual day-offs, sick leaves, and maternity leave.
    • Details of social benefits-contributions, eligibility.
    • Details of health insurance- kind of insurance will be accepted.
Onboarding Process

Onboarding Process

  • Once the written agreement is drafted between the employer and the employee, it usually takes 2-5 days for the onboarding process to complete.
  • Ideally, the onboarding process should include:
    • Details that your new employee should know about the company culture and brand.
    • How the manager and HR can help the new joinee, and how the colleagues can make the new employee feel comfortable in a new environment.
    • Goals that you have set for the new employee.
    • How and through which process their performance will be assessed.


Liechtenstein has 3 types of visas:
  • Schengen Visa(Short stay): Schengen Visa applies to the Schengen area, which comprises 26 European states. This type of visa is applicable for 90 days visits and has to be renewed every 6 months.
  • Airport transit Visa: For those, who are just traveling through Liechtenstein and need a visa for connecting flights.
  • National Visa(long stay): If anyone intends to stay longer than 90 days either for work or for residence, then they would require a type of National Visa- Lichtenstein Employment National Visa. To require this type of visa, an applicant must have the following documents:
  • Application forms in English and German
  • Valid passport
  • I.D. Card
  • Resident Permit/ Visa Copy
  • Proof of employment such as a job offer or employment contract
  • Proof of qualification
  • Detailed CV- dealing qualifications, experience, and professional area.
  • Police verification
  • Financial statements
  • Medical insurance

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Minimum Wage

Minimum Wage

There is no government-mandated minimum wage in Liechtenstein. The minimum wage differs for each sector. Most organizations in Liechtenstein offer a minimum wage of 2902 CHF to 9849 CHF.
Payroll Cycle

Payroll Cycle

In Liechtenstein, the payroll cycle is usually mentioned in the employment contract. Most organizations have a monthly payroll cycle.
Annual Bonus

Annual Bonus

There is a market practice to offer 1 month's pay as an annual bonus- which is popularly known as the 13th month's pay. Although there is no compulsion on the employer to offer it in Liechtenstein.
Health Benefits

Health Benefits

  • The Federal office of Public health monitors the healthcare system in Liechtenstein. Although it outsources some part of the health insurance as its a small country with only one Hospital.
  • Each resident above the age of 16 years is constitutionally guaranteed to the health care system.
  • Health insurance in Liechtenstein is either provided by private insurance, employers, or government health insurance.
  • Each resident must register individually with their choice of the insurance provider and make contributions as per their requirement.
Working hours and overtime

Working hours and overtime

  • Work hours: There is a statutory requirement of 45 hours of work per week in Liechtenstein from Monday to Friday. Employees are not required to work the night shift, from 11 PM to 6 AM. If the employers want their employees to work during the night shift, then they would require authorized permission from the office of Economic affairs.
  • Break: If employees have worked for 7 hours a day, then they are entitled to 30 minutes of break, and if they are working for more than 8 hours, then they are entitled to 1 hour of break. It is a general practice to give a 1-hour break.
  • Overtime: Overtime is allowed only in extraordinary circumstances- not more than 48 hours a week. Also, employees cannot work overtime for more than 2 hours a day. In overtime cases, the employee is paid 25% extra of their hourly wage.


Sick leaves

  • In Liechtenstein, employees can apply for a sick leave till they are back to work, except for those employees who are employed for less than 3 months and have worked less than 8 hours a week.
  • Employers should get government-approved insurance to cover the sick leave cost of an employee and should pay half of the insurance cost. Employers are responsible to inform the insurer about the employee's sick leave.

Parental leaves

  • Employees can take unpaid parental leaves of four months.
  • Biological parents can take this leave at any time till their child turns up to 4 years old.
  • Stepparents, foster and adoptive parents are allowed to take this leave till their child turns up to 6 years old.

Maternity leaves

  • Female employees can take maternity leave of 20 weeks and out of which 16 weeks of leave should be taken after the birth of the child.

Annual leaves

  • The employees working for 5 days a week, are entitled to 20 days of annual paid leaves.
  • The employees working for 6 days a week, are entitled to 24 days of annual paid leaves.
  • There are also additional 5 days of annual leaves for employees with disability.

Public Holidays (for the Calendar year 2023)

  • New Year's Day (1st January)
  • Epiphany(6th January)
  • Candlemass( 2nd Feburary)
  • St.Joseph's Day (19 March)
  • Easter Monday(10th April)
  • Labor Day (1st May)
  • Ascension Day (18th May)
  • Whit Monday (29th May)
  • Corpus Christi (8th June)
  • Liechtenstein National Day (15th August)
  • Nativity of Our Lady Mary (8th September)
  • All Saint's Day (1st November)
  • Immaculate Conception (8th December)
  • Christmas Day (25th December)
  • St Stephen's Day (26th December)

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Social Security

Social Security

The taxpayers need to contribute 4.7% as social security contributions (disability insurance, dependent and old-age pension schemes).
Taxes for Employers

Taxes for Employers

  • The employers in Liechtenstein are obligated to contribute to various funds:
    • 4.9% for old age, survivor's fund, and disability insurance
    • 1.9% for family and compensation fund
    • 0.5% as unemployment insurance
    • 1% as occupational accident insurance

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Taxes for Employees

Taxes for Employees

  • The employees also have to contribute to various funds:
    • 4.7% for old age, survivors' fund, and disability insurance.
    • 0.5% as unemployment insurance.
  • The individual income tax for employees is quite complicated. It is determined based on the employee's dependents and marital status.
    It can be understood with the help of a table
    National Tax RateSingle Person's Income (CHF)Single Parent's Income (CHF)Married Couple's Income(CHF)
    1% upto20,00030,00040,000
    3% upto40,00060,00080,000
    4% upto70,000105,000140,000
    5% upto100,000150,000200,000
    6% upto130,000195,000260,000
    6.5% upto160,000240,000320,000
    7% upto200,000300,000400,000
    8% upto200,000300,000400,000


The probation period in Liechtenstein is of 1 month. It is not a statutory requirement but a market practice.

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The terms of termination in Liechtenstein are defined in the employment agreement. It should be supported by a just cause such as:
  • expiration of the contract
  • mutually agreed terms
  • resignation by the employee
  • disciplinary action by the organization against the employee
  • the employee is not legally allowed to work in Liechtenstein.
  • criminal proceedings against the employee.
It is mandatory to provide a notice period to the employee.
  • If an employee is on probation period then the notice period is for 7 days.
  • If the employee is outside the probation period, then the notice period is for 1-3 months.
  • If the employee has worked for 2 to 9 years, then the notice period is for 2 months.
  • If the employee has worked for more than 9 years, then the notice period will be of 3 months.
Severance Pay

Severance Pay

  • There is no legal obligation on the employer to pay any severance pay to the employee.
  • Nevertheless, most organizations mention the conditions of severance pay in their employment contract.
Employees or Contractors

Employees or Contractors

  • In Liechtenstein, the differentiation between the employee and contractor is clearly exhibited through the 'statement of work' (SOW) contract.
  • It should be mentioned in the SOW whether the organization is hiring a contractor or an employee.
  • Liechtenstein's labor laws are on the lines of EU rules and regulations.
  • EU rules state that any misclassification of an employee or contractor invites serious penalties. And it is the companies that have to pay the fine.
Final Words

Final Words

As this article enumerated, Labour laws in Liechtenstein are silent on many aspects (mainly due to its small population). Therefore it is crucial that any organization aiming to hire a global team, engage a capable Employer-on-Record (EOR) services to avoid any penalties for non-compliance. EOR services will help in managing the employees and the country's employment legislation.

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