Learn about mandatory and optional employee benefits in Liechtenstein
In Liechtenstein, a range of mandatory employee benefits ensure a minimum level of security and compensation for workers. These benefits are established by law and employers are required to provide them to their employees.
Liechtenstein's social security system provides financial support to employees in various situations, including old age, disability, maternity, and unemployment. It is a multi-pillar system with mandatory contributions from both employers and employees.
Liechtenstein mandates various paid leave entitlements for employees:
In Liechtenstein, many employers offer additional perks and advantages to attract and retain talent, beyond the comprehensive set of employee benefits mandated by law.
Employers in Liechtenstein may offer various salary extras on top of the base salary. These can include performance-related bonuses tied to individual or company performance, relocation allowances to cover moving expenses for new hires from outside Liechtenstein, and meal vouchers to help employees save on meal costs.
To cater to employee needs and preferences, employers in Liechtenstein might offer flexible work arrangements. This could include part-time work options, remote work opportunities, and flexible working hours to allow for better work-life balance.
Some employers offer family-friendly benefits to support employees with childcare or eldercare responsibilities. These can include company childcare facilities or childcare subsidies, and eldercare support services or allowances.
Additional benefits offered by some Liechtenstein employers might include a company car or car allowance, free or subsidized gym memberships or other wellness programs, and language courses or other professional development opportunities.
The specific optional benefits offered by employers in Liechtenstein will vary depending on the company size, industry, and overall benefit strategy.
In Liechtenstein, a comprehensive healthcare system is in place that mandates health insurance for all residents, including employees.
Health insurance is compulsory for all residents of Liechtenstein, encompassing employees, self-employed individuals, and non-working residents. Residents have the liberty to select from several Krankenkassen (health insurance funds) that provide basic health insurance plans fulfilling the minimum requirements set by the government. The cost of basic health insurance is divided between employers and employees. The standard division is usually 50/50, with each party contributing approximately half of the premium amount.
Basic health insurance plans cover a broad spectrum of medical services, including hospitalization, doctor visits, medications, and maternity care. While basic plans cover a substantial amount, some out-of-pocket costs may apply for certain services or medications.
Liechtenstein offers a two-pillar retirement system that provides income security for employees after retirement. This system combines a mandatory state pension with a mandatory occupational pension scheme.
All employees and self-employed individuals in Liechtenstein above 17 years old contribute to the Old-Age and Survivors' Insurance (AHV) program. AHV provides basic pension benefits upon retirement, disability, or death. The exact benefit amount depends on contributions made and the number of years of contributions. A minimum of one year of contributions is required to be eligible for AHV benefits.
Employees exceeding a certain annual salary threshold are mandated to participate in a BVG (Occupational Pensions Act) scheme. This threshold is reviewed and adjusted periodically. BVG plans can be offered by individual companies (in-house plans) or through collective foundations serving multiple companies. BVG contributions are typically split between employers and employees, with a common split being 50/50. Deviations from this split are possible depending on the specific plan. BVG plans provide additional retirement benefits on top of the AHV pension. The benefit amount depends on factors like contributions made, salary history, and chosen retirement age.
The statutory retirement age for both AHV and BVG benefits is currently 64 years old for men and women. Flexible retirement arrangements are also available, allowing individuals to retire between 60 (early retirement) and 70 (deferred retirement) with adjustments made to the pension benefits accordingly.
Individuals can voluntarily contribute to private pension plans for further retirement savings beyond the mandatory schemes. Cross-border workers may have special social security arrangements depending on their specific situation and the country they reside in.
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