Payroll and Benefits Guide Liechtenstein
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
4.15%
|
Old Age & Survivors Insurance (AHV) |
| 0.75% | Disability Insurance (IV) |
| 1.9% | Family Compensation Fund (FAK) |
| 0.391 | Occupational Accident Insurance (VK) |
| 0.5 | Unemployment Insurance (ALV) |
| 8.1% | Total Employer Cost |
| Employee Payroll Contributions | |
|
3.95%
|
AHV (Old Age & Survivors) |
| 0.75% | Disability Insurance (IV) |
| 0.5 | Unemployment Insurance (ALV) |
| 5.2% | Total Employee Cost |
Income Tax
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Residents are taxed on a progressive income tax scale by the national government and local municipalities. Combined effective rates typically range from 2.5 % to 22.4 %, depending on income level and place of residence.
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Tax Rates Examples (Progressive Brackets):
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3 % on income up to CHF 20,000
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9 % up to CHF 40,000
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12 % up to CHF 70,000
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15 % up to CHF 100,000
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18 % up to CHF 130,000
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19.5 % up to CHF 160,000
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21 % up to CHF 200,000
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24 % on income above CHF 200,000
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Non-residents are taxed only on Liechtenstein-source income, with similar progressive rates applied.
Employer taxes
Working Hours
General
The standard working week in Liechtenstein is 45 hours, generally spread over five days. Daily working hours typically must not exceed 9 hours (including overtime) unless otherwise contractually agreed.
Overtime
The overtime regulations in Liechtenstein 🇱🇮 are governed by the Employment Act (Arbeitsgesetz – ArG) and the Code of Obligations (Obligationenrecht – OR). The system is characterized by varying statutory work weeks based on the sector, strict caps on total working hours, and a mandatory minimum premium rate for overtime.
The standard statutory maximum work week depends on the employee’s category:
| Category of Employee | Maximum Weekly Working Hours |
| Industrial, Office, Technical, and Retail Staff | 45 hours per week |
| All Other Employees | 48 hours per week |
| Young Workers (ages 15–18) | 40 hours per week |
Overtime Limits and Compensation Threshold
Overtime (Überstunden) is work performed beyond the employee’s contractual or statutory maximum hours.
| Aspect | Regulation Details |
| Daily Overtime Cap | Overtime hours generally may not exceed 2 hours per day. |
| Absolute Daily Cap | An employee’s total working hours, including overtime and breaks, must not exceed 13 hours per day. |
| Average Weekly Cap | The employee’s average working time, including overtime, may not exceed 48 hours per week over a four-month reference period. |
| Overtime Compensation Trigger | The mandatory premium is legally required for overtime work exceeding 60 hours in a calendar year for certain categories of employees (e.g., office staff, technical employees, and sales staff in large retail establishments). |
| Consent | Overtime is generally permissible but is subject to legal limits and often requires the employee’s agreement. |
Mandatory Overtime Pay Rates
Compensation can be paid in money or compensated with time off in lieu, by agreement.
| Day/Condition | Minimum Compensation Rate (Statutory) | Total Pay Rate | Notes |
| Standard Overtime Pay | +25% of the regular hourly wage. | 125% | This is the minimum statutory premium required for overtime work exceeding 60 hours in the calendar year for 45-hour work week categories (Industrial, Office, etc.). |
| Compensation Alternative | Equivalent time off in lieu (Freizeit). | Varies | Can be agreed upon instead of the 25% premium, provided the time off is compensated at a premium rate equivalent to the monetary rate. The employee can waive the 25% supplement in a written agreement for the first 60 hours. |
| Sunday or Public Holiday Work | +100% wage supplement. | 200% | Work on Sundays and official public holidays is generally prohibited without official authorization. If authorized and worked temporarily, a 100% supplement is mandatory, in addition to compensatory time off. |
The specific premium rates and compensation methods are often stipulated in Collective Bargaining Agreements (CBAs) or individual contracts, which may offer more favourable terms than the statutory minimums above.7
Payroll
In Liechtenstein, payroll is conducted on a monthly basis, with employees generally receiving their salary at the end of the month or at the beginning of the next. Payments must be made via bank transfer in Swiss francs (CHF), the country’s official currency. Employers are required to issue detailed payslips indicating gross salary, deductions (such as social security and taxes), and net pay.
13th Salary
Liechtenstein does not have a statutory requirement to pay a 13th month salary.
Leave
Annual Leave (vacation)
Employees are entitled to 20 days of paid annual leave per year when working a five-day week; this increases to 25 days for six-day workweeks. Unused leave may carry over until March 31 of the following year.
PTO carryover
In Liechtenstein, statutory annual leave must generally be taken in the year it’s earned, but unused leave can be carried over if it couldn’t be taken for valid reasons (e.g., operational needs or illness). Employers cannot forfeit accrued statutory leave by a blanket “use-it-or-lose-it” policy, and unused leave must be taken later or paid out on termination.
Public Holidays
Holidays falling on the weekend are observed on the following working day(s).
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 6 January 2026 | Tuesday | Epiphany | Standard holiday |
| 2 February 2026 | Monday | Candlemas | Standard holiday |
| 19 March 2026 | Thursday | St. Joseph’s Day | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 25 May 2026 | Monday | Whit Monday | Standard holiday |
| 4 June 2026 | Thursday | Corpus Christi | Standard holiday |
| 15 August 2026 | Saturday | National Day (also Assumption Day) | Standard holiday |
| 8 September 2026 | Tuesday | Nativity of Our Lady Mary | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 8 December 2026 | Tuesday | Immaculate Conception | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | St. Stephen’s Day (Boxing Day) | Standard holiday |
Sick Days
Employees receive at least 80 % of their wages during sickness, starting from the second day and lasting up to 720 days within any 900-day period.
Maternity Leave
Female employees are entitled to 20 weeks of paid leave, with at least 16 weeks taken after childbirth.
Paternity Leave
Legally, Liechtenstein has not yet established a statutory entitlement to paid paternity leave. While some employers may voluntarily offer a day or so for fathers to be present at childbirth, no such benefit is enshrined in law
Employer taxes
Termination
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Salaries are typically paid monthly, at an agreed-interval specified in the employment contract or collective agreement. | On termination the employer must observe the applicable notice period (which depends on length of service) and pay out all earned wages and entitlements. A fixed universal “within X days” deadline for all payments was not found in accessible sources. | Payment method is not strictly required to be exclusively via bank account in all sources. Wages must be paid in money and payment via bank transfer is common practice. |
Immigration
Foreign nationals wishing to work in Liechtenstein must navigate a regulated permit system, guided by nationality and type of employment:
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Swiss and EEA Nationals benefit from freer access due to bilateral agreements—they typically need only to register within 10 days of starting work and do not require a visa or work permit, though they may be subject to quota limitations.
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Third-country nationals (non-EEA/Swiss) must secure both a work permit and, where needed, a work visa for entry:
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Permit types include:
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Permit L (Short-Term Work Permit): Up to one year—for temporary or project-based roles; quota-controlled.
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Permit B (Annual Permit): Typically valid for one year, employer-specific and renewable.
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Permit G (Cross-Border Commuter Permit): For those residing in neighboring countries yet working in Liechtenstein, granted for one year.
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Permit C (Settlement Permit): Permits long-term residency (not tied to a job); very limited availability.
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The employer sponsors the work permit application, demonstrating no suitable local candidate exists, and submits required documents such as the employment contract, the candidate’s qualifications, proof of accommodation, health insurance, and more.
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Once the permit is approved, the worker applies for a work visa (if necessary), then registers with the local municipality upon arrival. Processing timelines vary and quotas may delay the process.
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Minimum Wage
No statutory minimum wage exists in Liechtenstein. Instead, wages are typically shaped by sectoral collective bargaining agreements (CBAs) or employer practice. As of 2025, no legal mandate sets a baseline wage across the economy.
MINIMUM WAGE (PER MONTH)
VAT
Liechtenstein’s VAT system closely aligns with Switzerland’s structure due to their customs union, featuring the following rates since January 1, 2024:
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Standard VAT Rate: 8.1 % (up from 7.7 %)
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Reduced Rate: 2.6 % — applicable to goods like food items, books, newspapers, and medications
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Special Rate: 3.8 % — applies to lodging and accommodation services
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Exemptions: Services such as healthcare, education, banking, and insurance are VAT-exempt
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Businesses with annual taxable turnover under CHF 100,000 may qualify for exemption.
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Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 6 January 2026 | Tuesday | Epiphany | Standard holiday |
| 2 February 2026 | Monday | Candlemas | Standard holiday |
| 19 March 2026 | Thursday | St. Joseph’s Day | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 25 May 2026 | Monday | Whit Monday | Standard holiday |
| 4 June 2026 | Thursday | Corpus Christi | Standard holiday |
| 15 August 2026 | Saturday | National Day (also Assumption Day) | Standard holiday |
| 8 September 2026 | Tuesday | Nativity of Our Lady Mary | Standard holiday |
| 1 November 2026 | Sunday | All Saints’ Day | Standard holiday |
| 8 December 2026 | Tuesday | Immaculate Conception | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | St. Stephen’s Day (Boxing Day) | Standard holiday |
Questions & Answers