Employer of Record in Liechtenstein

An Employer of Record, or EOR, is a service that helps you hire employees in Liechtenstein without needing to set up your own local company. This third-party organization acts as the legal employer for your team members. It handles all the administrative and legal work that comes with employment. This includes payroll, benefits, taxes, and ensuring you follow all of Liechtenstein's labor laws. Using an EOR like Rivermate allows you to build a team in Liechtenstein quickly and properly.

How an Employer of Record (EOR) Works in Liechtenstein

Using an EOR simplifies the process of hiring in a new country. It breaks down into a few clear steps.

• You Find the Talent: You are responsible for selecting the candidate you want to hire in Liechtenstein.
• The EOR Hires Them: The EOR uses its local business entity to legally hire the employee on your behalf.
• Contracts are Handled: The EOR creates a compliant employment contract that meets all of Liechtenstein's legal requirements.
• Onboarding Begins: The EOR manages the onboarding process, making sure your new hire is set up correctly from day one.
• HR is Managed: The EOR handles all ongoing HR tasks. This includes payroll, tax withholding, benefits administration, and social security contributions.

Why use an Employer of Record in Liechtenstein

Using an EOR offers a straightforward way to grow your team in Liechtenstein. It removes many of the usual challenges of international expansion. You can enter the market and start operations faster because you don't have to go through the lengthy process of establishing a legal entity. This allows you to focus on your business goals instead of getting stuck on administrative hurdles.

• Stay Compliant: An EOR ensures you follow all local labor laws, from employment contracts to leave entitlements. This reduces the risk of legal issues.
• Save Time: The EOR handles time-consuming HR tasks. This frees you up to focus on managing your employee and growing your business.
• Access Local Experts: You get access to local HR and legal professionals who understand the specific rules and customs of the Liechtenstein market.
• Enter the Market Faster: You can hire employees and begin work quickly, often in a fraction of the time it would take to set up your own company.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Liechtenstein includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Liechtenstein.

Hiring in Liechtenstein offers a blend of flexibility for employers and strong protections for employees. The country's employment laws are modern and align with European standards, creating a stable and attractive environment for both businesses and talent. Companies benefit from a straightforward legal framework, while employees enjoy fair working conditions and social security. This balance makes hiring in Liechtenstein a predictable and manageable process.

Employment contracts & must-have clauses

While you can make oral employment agreements in Liechtenstein, a written contract is highly recommended. A written agreement provides clarity for both you and your employee. If you only have an oral agreement, you are still obligated to provide a written document outlining the key terms of employment.

Your employment contracts should be in German and use the Swiss franc (CHF) as the currency.

Be sure to include these essential clauses in your written contracts:

• Names and addresses of both the employer and employee.
• Date of commencement of the employment.
• Job description and primary workplace.
• Salary and any additional compensation.
• Working hours.
• Holiday entitlement.
• Notice periods for termination.

Probation periods

In Liechtenstein, the first month of employment is automatically considered a probationary period unless you agree otherwise in the contract. You and your employee can agree to extend this period up to a maximum of three months. During the probation period, either party can terminate the contract with a seven-day notice period.

Working hours & overtime

The standard workweek in Liechtenstein is typically between 42 and 45 hours. The maximum weekly working hours are set by law:

Work performed beyond the standard hours is considered overtime. Overtime must be compensated with either time off or an additional payment of at least 25% of the regular wage.

Public & regional holidays

Employees in Liechtenstein are entitled to paid leave on public holidays. The country observes a number of national and religious holidays throughout the year.

Here are the public holidays for 2025:

• New Year's Day: January 1
• St. Berchtold's Day: January 2
• Epiphany: January 6
• Candlemas: February 2
• Shrove Tuesday: March 4
• St. Joseph's Day: March 19
• Good Friday: April 18
• Easter Monday: April 21
• Labour Day: May 1
• Ascension Day: May 29
• Whit Monday: June 9
• Corpus Christi: June 19
• National Day: August 15
• Nativity of Mary: September 8
• All Saints' Day: November 1
• Immaculate Conception: December 8
• Christmas Day: December 25
• St. Stephen's Day: December 26

Hiring contractors in Liechtenstein

Hiring independent contractors can be a flexible way to access specialized skills. When you hire a contractor, you need a clear and compliant service agreement that outlines the scope of work, deliverables, and payment terms.

It is crucial to correctly classify your workers. Misclassifying an employee as an independent contractor can lead to significant penalties, including back taxes and social security contributions. The authorities will look at the actual nature of the working relationship, not just the contract.

Here are some factors that distinguish an independent contractor from an employee:

• Control: A contractor has control over how, when, and where they complete their work.
• Integration: A contractor's work is not integral to the company's core business.
• Financial Independence: A contractor uses their own tools and equipment and has the opportunity for profit and risk of loss.

Using an Employer of Record (EOR) can help you mitigate the risks of misclassification. An EOR can help you hire and pay contractors in compliance with local laws, ensuring that you avoid potential legal and financial penalties.

In Liechtenstein, you'll find a competitive and well-regulated environment for employee compensation and payroll. The country's strong economy and high standard of living are reflected in its salary expectations. As an employer, you need to understand the local laws and practices to attract and keep talented people. This involves navigating market-driven salaries, payroll regulations, and mandatory benefits.

Payroll cycles & wage structure

In Liechtenstein, the standard payroll cycle is monthly. You pay your employees once a month, usually toward the end of the month. The most common payment method is a direct bank transfer to the employee's bank account. You must provide a detailed payslip that shows the gross salary, all deductions, and the final net pay.

Salaries are competitive and influenced by industry, role, and a person's experience. While there is no official minimum wage, collective bargaining agreements often set wage standards in certain sectors. It's also common practice to pay a 13th-month salary, which is often paid out at the end of the year.

Overtime & minimums

Liechtenstein law does not set a national minimum wage. Instead, wages are often determined by collective bargaining agreements or individual employment contracts. These agreements ensure fair pay based on industry standards.

If your employees work more than the standard hours, you must pay them overtime. The overtime rate is at least 25% more than their regular pay. Alternatively, you can offer them additional time off. For work on a rest day, the compensation is the employee's normal wage plus a 100% bonus.

Employer taxes and contributions

As an employer in Liechtenstein, you are responsible for several payroll taxes and contributions. These are calculated on top of an employee's gross salary.

Employee taxes and deductions

Employees in Liechtenstein also contribute to social security and pay income tax. You withhold these amounts directly from their salary.

In Liechtenstein, you'll find a solid framework of employee benefits and leave policies. The system is built on mandatory social security contributions from both you and your employees. This covers pensions, disability, and unemployment. On top of this, you have statutory leave requirements that are important to understand.

Statutory leave

When you employ someone in Liechtenstein, you need to provide specific types of paid leave.

• Annual Leave Employees who work a five-day week get 20 days of paid vacation. If they work a six-day week, this increases to 25 days.
• Sick Leave If an employee is sick, they can get up to 720 days of sick leave within a 900-day period. The pay is at least 80% of their normal wages and is covered by the social security system.
• Maternity Leave Mothers are entitled to 20 weeks of paid maternity leave. This is usually taken four weeks before the birth and 16 weeks after. The pay is at least 80% of their regular salary.
• Paternity Leave While not as extensive as maternity leave, fathers are entitled to some time off after the birth of a child.
• Family Leave Employees can take up to three days of paid leave to care for a sick relative.

Public holidays & regional holidays

Your employees in Liechtenstein are entitled to paid time off for public holidays. Here are the public holidays for 2025.

Typical supplemental benefits

To attract and keep the best talent, you'll want to offer more than the legal minimum. Here's a look at both statutory and common non-statutory benefits.

How an EOR can help with setting up benefits

Setting up employee benefits in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR acts as the legal employer for your staff in Liechtenstein. This means they handle all the administrative and legal tasks related to employment.

Here's what an EOR can do for you:

• Compliance An EOR ensures you comply with all local labor laws. This includes everything from employment contracts to leave entitlements.
• Benefits Administration They manage the enrollment and administration of both mandatory and supplemental benefits. This saves you time and reduces the risk of errors.
• Payroll and Taxes An EOR handles all payroll calculations, tax withholdings, and social security contributions.
• Local Expertise You get access to local HR and legal experts who understand the nuances of the Liechtenstein market.
• Faster Market Entry You can hire employees and start operations quickly without the need to set up a legal entity in the country.

By partnering with an EOR, you can offer competitive benefits packages that attract top talent, while you focus on growing your business.

Ending an employment relationship in Liechtenstein involves clear rules for both employers and employees. The process is governed by local labor laws that aim to ensure fairness. You must follow specific steps, from giving proper notice to calculating any final payments. Whether you or the employee decides to part ways, sticking to the legal requirements is essential. This protects both parties and helps you manage workforce changes correctly.

Notice periods

The notice you need to give an employee depends on how long they have worked for you. These are the minimum periods set by law. Your employment contract might specify longer ones.

Notice must be in writing. It usually starts on the first day of the month after you give notice and ends on the last day of a month.

Severance pay

Employees may be entitled to severance pay when you terminate their contract. Eligibility typically starts after three years of service with your company. The amount is based on the employee's length of service and their final salary. Severance pay might not be required if you dismiss an employee for just cause or if the employee resigns.

How Rivermate handles compliant exits

When you partner with an Employer of Record like Rivermate, we manage the entire offboarding process for you. We make sure every termination is handled in full compliance with Liechtenstein's labor laws.

Here’s how we help:

• Legal Compliance: We ensure that all legal procedures are followed correctly, from drafting the termination notice to calculating final payments.
• Clear Communication: We handle communication with the departing employee, making the process clear and respectful.
• Risk Reduction: By managing the process, we help you avoid the risks of wrongful dismissal claims and other legal issues.
• Final Payroll: We take care of the final payroll, ensuring all outstanding salary, unused vacation days, and any applicable severance are paid correctly and on time.

We handle the complexities so you can focus on your business. Our process ensures a smooth and compliant exit for every employee.

Navigating the visa and work permit system in Liechtenstein requires careful planning. The country is part of the European Economic Area (EEA), which shapes its immigration policies. While it's not in the European Union, its rules align closely with its neighbors. This means that for some, working in Liechtenstein is straightforward. For others, it presents significant hurdles. The government uses strict quotas to manage the number of foreign workers, giving priority to people from Liechtenstein, Switzerland, and other EEA countries.

Employment visas & sponsorship realities

Getting a work permit in Liechtenstein is tough, especially if you are not from the EEA or Switzerland. The system is designed to protect the local job market, so employers must prove they cannot find a suitable candidate locally before hiring from abroad.

Here’s what you need to know:

• Quotas are extremely limited. Liechtenstein issues a very small number of residence permits to non-EEA citizens each year. For example, only 72 residency permits are issued annually to EEA citizens, and the number for other foreign nationals is also tightly controlled.
• The process is employer-led. Your employer in Liechtenstein must start the application process for you. They need to show the Office of Economic Affairs that your skills are needed.
• EOR sponsorship is difficult. An Employer of Record (EOR) can typically only sponsor non-EEA workers if the role is highly skilled and no local or EEA candidate is available. The strict quotas make this challenging.
• Practical routes often involve specific skills. The most realistic path for non-EEA nationals is to be a highly skilled specialist in a field like IT, finance, or engineering.

There are several types of work permits, each with its own rules:

Business travel compliance

For short-term visits, the rules are simpler, but you still need to be compliant. Liechtenstein is part of the Schengen Area, which allows for free movement within member countries.

• Schengen Visa: If you are from a country that requires a visa for the Schengen Area, you will need one to travel to Liechtenstein for business.
• 90-day limit: Citizens from many countries can enter the Schengen Area for up to 90 days within a 180-day period without a visa for business meetings or conferences.
• No work allowed: You cannot perform work on a business visit. Activities are limited to things like attending meetings, negotiating contracts, or attending trade shows. For any hands-on work, a proper work permit is necessary.