Liechtenstein
It may be a small country, but Liechtenstein is home to plenty of great remote talent. In the next few minutes, you’ll learn exactly how you can hire remote talent in Liechtenstein—without paying thousands in fees and spending months talking to lawyers about labor laws.
Country snapshot
CURRENCY
Swiss franc
EMPLOYER TAXES
2.19%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
German
It’s the fastest way to hire globally
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It’s a lot cheaper
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
It’s more flexible for you & your team
Can be less risky than hiring employees
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
Some people want to be employees
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
You might not have as much control over your talent
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
Hiring in Liechtenstein can be confusing, but it’s easier when you know what you’re doing. If you want to hire remote talent in Liechtenstein, you have two options: Hire people as contractors, or hire them as employees.
Hire talent as contractors
Hire talent as employees
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Liechtenstein than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Liechtenstein.
Employer tax
Family Compensation Fund
Administrative Costs
Paid Time Off (PTO)
In Liechtenstein, employees who work a five-day week receive 20 days of paid annual leave, or 24 days for employees who work six days per week.
Employees who are 20 years old or younger are entitled to a minimum of 25 days per year.
Employees inform their employer when they wish to take time off, and the employer schedules the leave.
The employer is obligated to take the employee’s requests into account and may only reject a request if the needs of the business require the employee to be at work.
The employer must pay an employee for unused vacation time when the employment relationship ends.
Public Holidays
There are 15 public holidays.
Sick Days
The employer is required to pay half the costs of this insurance and may assume more than half of the cost.
Employees may also take up to three days of leave to care for a sick household member.
Employers in Liechtenstein are required to purchase insurance from a government approved insurer to cover the costs of the per diem sick pay.
If the employee will take a sick leave, whether for themselves or a household member, an employee is obligated to notify the employer and provide a medical certificate.
Maternity Leave
Female employees are entitled to 20 weeks of maternity leave, of which 16 must be taken after the birth.
Residents who are not employed may be able to receive a maternity benefit in an amount based on the resident’s spouse’s salary and number of children.
Paternity Leave
The father in liechtenstein may use the parental leave.
Parental Leave
Employees are also entitled to take an unpaid parental leave of up to four months.
Parents seeking to take parental leave must notify the employer at least three months in advance.
The employer may require that the parental leave be taken at a different time than requested due to the needs of the business.
Other Leave
No Info.
Marriage Leave
No Info.
Bereavement Leave
No Info.
Termination Process
Employment relationship may be terminated by the employer as well as by the employer at any time without specifying grounds.
Adherence to these notice periods is not necessary if the employee or employer has good cause to terminate the employment relationship without notice.
If both the employee as well as the employer agree, the employment relationship may also be dissolved with immediate effect by means of a so-called severance contract.
Notice Period
Employees in Liechtenstein, is between one and four weeks.
Severance Pay
Employees receive four weeks of severance pay for each year worked if dismissed due to economic reasons.
Probation Period
Probation period is 1 month.
Working Hours
The standard working week in Liechtenstein is:
- 45 hours for employees in industrial enterprises or office personnel, for technical and other employees including sales personnel in major retail businesses (retail sector);
- 40 hours for young persons aged between 15 and 18;and
- 48 hours for all other employees.
Overtime
In Liechtenstein, additional working hours are defined as working hours that exceed the maximum working hours per week.
Overtime must be compensated with leisure time or paid with an overtime bonus of at least 25 percent.
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