Companies expanding to Liechtenstein often benefit from expert support with navigating the country’s compensation and benefits laws and norms. G-P can help ensure companies are offering competitive compensation that is going to attract and retain top local talent. We handle the complexities around compliance, freeing valuable team members up to focus on operating and growing the business in the region.
Liechtenstein compensation laws
Liechtenstein does not have a minimum wage requirement, but Collective Bargaining Agreements (CBAs)and market standards may determine the standard wages for specific industries. Salaries are typically calculated by the hour, and employers should pay employees at regular, agreed-upon intervals. Employers are responsible for maintaining accurate records of withheld taxes, payments, and other critical financial information for the company.
If employees work extra time outside of standard working hours, employers must provide additional compensation at these rates:
- Overtime: At least 25% more pay than regular wages or extra leave allowances
- Rest day work: Normal wages plus an additional 100% of regular wages as a bonus
Guaranteed benefits in Liechtenstein
Employees are entitled to paid annual leave with leave available based on how many days they work each week. Employees who work 5 days per week get 20 days, and those who work 6 days per week get 25 days.
They may also receive 3 days of paid family leave to care for an ill relative and up to 720 days of sick leave in 900 days.
Pregnant employees are entitled to 20 weeks of maternity leave with full pay.
Employers are also responsible for contributing to social security for employees and providing employer tax contributions. All legal residents of the country must obtain health insurance through a government-approved provider. However, employers can provide additional insurance coverage through a private source as an extra benefit for employees.
Liechtenstein benefits management
As companies consider the benefits to offer employees, they must create an option that is competitive in the local market and manageable with their budget.
In addition to any legally required benefits and compensation, employers may also want to consider providing bonuses and assistance that might be of material or logistical use for work. Employers should consider employees’ operational requirements, situational needs they may have, and standards within the industry to offer additional services. Companies might offer benefits such as these to attract and retain top talent:
- Meal vouchers
- A business phone
- Housing or relocation assistance
- Ongoing education courses and workshops
- Bonuses and awards for performance and accomplishments
Restrictions for benefits and compensation
While there is no minimum wage stipulation in Liechtenstein, the country has several regulations regarding working hours and fair practices in the workplace. Employers should ensure they meet market standards for the industry and specific roles within the company.
According to Liechtenstein compensation laws, companies must ensure fair wages and working conditions for employees. Employers are responsible for maintaining equipment and facilities according to safety requirements and providing a required rest day on Sunday each week.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.