Liechtenstein is a country in Western Europe, situated in the European Alps and bordered by Switzerland and Austria. Known for its strong economy, particularly in the financial sector, Liechtenstein has a GDP of 7.50 billion US dollars (2024), and a workforce of 46,040 people (2023).

A highly developed economy makes Liechtenstein attractive as an opportunity for expansion by businesses in other countries. They have a strong focus on the manufacturing and financial sectors, while having strong links to Switzerland and the European Union as a whole, which many foreign companies may look to benefit from.

This help guide will provide all the details companies need regarding employee benefits in Liechtenstein, from an overview of local labor laws to the mandatory benefits employees are entitled to. We’ll also explain what Remote People can do to help simplify doing business in Liechtenstein.

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Liechtenstein Labor Law

Liechtenstein’s labor laws are mainly informed by the General  Civil Code. This legal framework provides rights and obligations of both employers and employees to protect a fair workplace, and ensure equal rights to pay, paid leave, and overtime compensation.

Other legal acts that may inform Liechtensteinian labor laws include:

  • The Act on Employment in Business, Trade, and Industry
  • Gender Equality Act
  • The Liechtenstein Employment Act
  • Act on the Declaration of the General Application of Collective Employment Agreements

It’s strongly recommended that businesses hiring in Liechtenstein consult with legal professionals to ensure that all mandatory employee rights are adhered to within local labor laws.

Mandatory Employee Benefits in Liechtenstein

The mandatory employee benefits in Liechtenstein are explained via local labor laws – we’ve included information on these benefits in the sections below.

Social Security Contributions

Liechtenstein has a Social Security System whereby workers can claim financial benefits in a range of situations. The system covers:

  • Old-age pensions
  • Disability pensions/benefits
  • Survivors’ pension/benefits
  • Unemployment insurance
  • Maternity benefit
  • Family benefits
  • Social assistance

The Social Security System is funded by workers and employees via regular contributions.

Workers must pay 4.7% of their monthly salary towards old-age and dependent pension schemes, disability insurance, and unemployment insurance. Employers must pay 4.9% of their monthly payroll towards old-age and dependent pension schemes, disability insurance, family allowance, administration costs, and unemployment insurance.

Annual Paid Leave

Employees in Liechtenstein are entitled to 20 days of annual leave if they work 5 days a week, or 25 days of annual leave if they work 6 days a week.

Leave that is unused may be carried over to the next calendar year, provided that it’s used by the 31st March. Annual leave must be requested with fair notice – this will be stipulated in an employee’s contract.

Employees are also entitled to 3 days of paid family leave if they need to care for a sick relative.

Working Hours

Typical working hours in Liechtenstein vary depending on the industry, but usually follow the following:

Employee CategoryMaximum Working Hours per Week
Industrial, office, technical, and retail employees45 hours
Young workers (ages 15–18)40 hours
All other employees48 hours

Daily working hours should not exceed 9 hours (including overtime), unless specific agreements in employee contracts stipulate that this is permitted.

Overtime Pay

Hours worked above a worker’s contracted hours are considered overtime. Overtime hours are generally voluntary, but may be necessary in the following circumstances:

  • Additional workload
  • Urgency of work (deadlines, targets, etc)
  • To rectify operational interruptions

Overtime must be compensated either with additional days off or with a bonus of at least 25%. An average working week, inclusive of overtime hours, may not exceed 48 hours in a four-month period.

Public Holiday Leave

There are 20 public holidays in Liechtenstein in 2025, which are considered paid days off. These are as follows:

  • January 1, 2025: New Year’s Day
  • January 2, 2025: Berchtold Day
  • January 6, 2025: Epiphany
  • February 2, 2025: Candlemas
  • March 4, 2025: Carnival/Shrove Tuesday
  • March 19, 2025: St Joseph’s Day
  • April 18, 2025: Good Friday
  • April 21, 2025: Easter Monday
  • May 1, 2025: Labour Day/May Day
  • May 29, 2025: Ascension Day
  • June 9, 2025: Whit Monday
  • June 19, 2025: Corpus Christi
  • August 15, 2025: Liechtenstein National Day
  • September 8, 2025: Nativity of Our Lady
  • November 1, 2025: All Saints’ Day
  • December 8, 2025: Feast of the Immaculate Conception
  • December 24, 2025: Christmas Eve
  • December 25, 2025: Christmas Day
  • December 26, 2025: St Stephen’s Day
  • December 31, 2025: New Year’s Eve

Sick Leave

Employees in Liechtenstein are eligible for sick leave with pay if they are too unwell to work – this usually starts from the second day of sickness.

This equates to a maximum of 720 days of sick leave within a consecutive 900-day period. Employees are paid at least 80% of their normal wages which on sick leave. 

Workers that have worked for their employer for a minimum of 3 months may be eligible for full pay from their second day of illness. This is granted at the employer’s discretion and must be included within an employees contract.

Sick pay is paid by the social security system – this must be applied for by the employer.

Maternity Leave

Women in Liechtenstein are eligible for maternity leave if they have a baby.

Workers can take 20 weeks of paid maternity leave, which is usually taken as 4 weeks before birth and 16 weeks after birth. Maternity leave must be paid at the rate of at least 80% of an employee’s normal pay.

To be eligible for 20 weeks of maternity leave, workers must have paid into a health insurance fund for a minimum of 270 days before giving birth.

Parents in Liechtenstein are also permitted to take up to 4 months of unpaid leave each, which may be taken until the child reaches the age of 3.

Paternity Leave

There is currently no access to paid paternity leave in Liechtenstein for expectant fathers. 

An EU directive is in place with the aim of introducing a 2-week paid paternity leave. 

Both male and female employees are eligible to take 4 months unpaid parental leave to look after their child until they reach 3 years old.

Severance Pay

There is no legal obligation for employers to pay severance pay to workers in Liechtenstein. 

However, some companies offer severance as a supplementary benefit in the event of dismissal or contract termination. This is usually calculated based on experience and years of services.

Pensions

The pension system in Liechtenstein is divided into 3 pillars.

The first is the old-age state pension, which covers all employed people in Liechtenstein as well as resident unemployed people.

The second is for mandatory occupational pension plans for employees receiving a minimum income.

The third is for private pensions, which are voluntary schemes that involve private insurance or pension savings plans.

Supplementary Employee Benefits in Liechtenstein

There are a range of supplementary employee benefits that are advised when employing in Liechtenstein. This is to improve the chances of receiving applications for job roles and for improving the length of time that staff stay with your company.

A few examples of supplementary employee benefits include:

  • Advanced training programs
  • Company car
  • Performance bonuses
  • Enhanced paid leave entitlement
  • Private pension opportunities
  • Expenses for transport, food, or housing

Optimize Employee Benefits with Remote People

Remote People specialize in simplifying employee benefits through our Employer of Record (EOR) services.

We help companies hire in Liechtenstein by matching them with a qualified EOR partner who tailors their services to your business needs. From ensuring employee benefit compliance to managing payroll and tax obligations, the EOR takes on the administrative burden—making your hiring process in Liechtenstein smoother and stress-free.

We can also help you find the best talent for your business via our Liechtenstein recruitment services. Our experienced team understand the local market, language, and cultures to make hiring easier, plus they know the best way to source candidates on the most popular platforms in the area.

Contact Remote People today to see how we can make hiring in Liechtenstein easier so that you can focus on the rest of your business.