Employment Law

Liechtenstein Employment Contract

In Liechtenstein, an employment contract can technically be oral or written, but we always recommend entering into a formal written contract when hiring employees. These contracts should provide all necessary details such as salary, expected responsibilities and any benefits and rights, and be written in German and use the local currency, Swiss francs.

Fixed Term

Indefinite

Working Hours in Liechtenstein

The standard working week for Liechtenstein employees is 45 hours divided into five days.

Holiday Policy

Liechtenstein Vacations

Employees in Liechtenstein are generally entitled to at least four weeks (20 days) of paid leave per year.

Liechtenstein Sick Leave

Generally speaking, employees in Liechtenstein receive sick pay equal to at least 80% of lost wages when they are unable to work due to illness. This compensation is paid by the state and usually begins on the day after the absence, up to a maximum of 720 days in any 900-day period .

Maternity and Paternity Leave in Liechtenstein

Female employees in Liechtenstein are entitled to 20 weeks of paid maternity leave, of which at least 16 weeks follow the birth.

Taxes in Liechtenstein

Liechtenstein's income tax system is progressive, with employees with higher income levels paying higher tax rates. State taxes range from 0% to 8%, which is very low compared to most countries, but there is also a public tax, making the actual total tax liability between 2.5% and 22.4%.

Liechtenstein's corporate tax rate is 12.5%.

Health Insurance in Liechtenstein

Liechtenstein has a public universal healthcare system and all employees are required to contribute to the national health insurance. Therefore, private insurance is not required, although some employers may choose to offer private insurance as a benefit.

Employee Severance Pay and Termination of Contract in Liechtenstein

Employees in Liechtenstein are generally entitled to a period of notice before terminating their employment. The mandatory notice period ranges from one month to three months, depending on the length of service.

The probation period in Liechtenstein is usually about one month, but can be as long as three months.

Salary and Benefits

Liechtenstein Compensation Law

Liechtenstein does not have a mandatory minimum wage.

Benefits Administration in Liechtenstein

As a foreign company, organizing the Liechtenstein benefits system for your employees can be a long and difficult process. You should be prepared to spend a lot of time setting up the system and keeping it compliant, which may cause delays in the hiring process.

Outsourcing your Liechtenstein benefits administration is a quick, easy and effective way to keep everything up and running in full compliance with federal and provincial laws.