Liechtenstein may only be 25km long, but the potential it holds is much larger. This small alpine country tucked between Switzerland and Austria punches well above its weight. It's got a world-class financial system, EEA market access, and a reputation for stability.
But if you're thinking about hiring in Liechtenstein, you'll need a handle on work permits, payroll contributions, and what makes a contract legally valid before your new hire can get started.
Here's a step-by-step look at how to hire and pay employees in Liechtenstein without getting buried in the legal fine print.
Understand legal requirements for hiring in Liechtenstein
Liechtenstein blends Swiss precision with EU influence. That means labor laws are well-defined and rarely flexible. Here's what you need to cover before you start hiring.
Decide how you'll hire: local entity or Employer of Record (EOR)?
If you already have a registered entity in Liechtenstein, you can hire directly. If not, setting one up requires registration with the Liechtenstein Public Register, a local address, and potentially a resident manager.
If that sounds like a lot of red tape, you've got another option: an employer of record. EOR providers like Pebl handle the legal employment on your behalf, including contracts, payroll, and tax reporting, so you can hire faster without setting up a local branch.
Draft an employment contract that checks every box
Contracts in Liechtenstein don't have to be written, but trust us, you want them that way. If you don't provide a written agreement, you still have to deliver a summary of key terms, and verbal agreements won't cut it for most global teams.
Make sure your contract includes:
- Correct language. Use German or include a German version.
- Terms of employment. Job title, duties, salary, work hours, notice periods, and any collective agreements.
- Probation period. One month is standard, but you can go up to three months legally.
You'll want to align with the Labor Act of Liechtenstein. Some terms are flexible, but many like notice periods are protected by law.
Know the work permit rules
Liechtenstein is part of the EEA, but foreign labor is tightly regulated. The government limits how many non-residents can work in the country each year, so plan ahead.
- Swiss nationals. Can work freely thanks to a bilateral agreement.
- EU/EEA citizens. Need a work and residence permit. These are limited and typically require proof that no local candidate was available.
- Non-EU nationals. Face stricter limits. Permits are rarely issued unless the job is highly specialized.
Permits are handled by the Migration and Passport Office, and approvals can take weeks.
If you're comparing this process to other regions, you might also want to check out how hiring employees in France or setting up payroll in Germany compares.
Step-by-step process to hire employees in Liechtenstein
Hiring locally? These are your must-do steps:
- Set up your hiring structure. Choose between a local entity or EOR.
- Create a compliant employment contract. Include German terms and probation language.
- Apply for necessary permits. Especially if you're hiring a foreign national.
- Register for Social Security. Notify the AHV-IV-FAK Office.
- Register with the tax office. To handle income tax withholdings.
- Set up payroll. Make sure it's in CHF and follows local standards.
- Start the probation period. Usually one month.
Payroll setup and salary payments in Liechtenstein
Payroll here is predictable but not without its quirks. Everything's in Swiss francs, and you'll need to get social contributions and timing right from the start.
What to know about salaries and pay cycles
There's no national minimum wage, but collective agreements set benchmarks in many industries. Most white-collar workers earn well above the minimum.
As of 2025, the average gross monthly salary in Liechtenstein sits around CHF 6,500 (US$8,245). Salaries are usually paid monthly, by the last business day.
Setting up payroll
You can run payroll in-house (if you've got a local entity), work with a local provider, or go through an EOR. If you're paying through an EOR like Pebl, everything-currency conversion, tax withholdings, mandatory benefits-is baked into the platform.
Payroll is typically processed by the 25th and paid by month-end. It must be disbursed in CHF, through a SEPA-compliant banking system.
Don't miss mandatory social contributions
Here's what gets deducted (and matched):
- AHV/IV/FAK. Social security, disability, and family allowances-about 12.6%, split evenly.
- Accident insurance. Employers cover workplace incidents; employees usually cover non-work coverage.
- Pension fund. Kicks in for employees earning more than CHF 22,050/year.
- Health insurance. Not employer-paid, but you need to confirm your employees are enrolled.
To see how this compares globally, you might want to review the International Payroll Guide for a broader perspective.
Employee benefits, leave, and how to stay compliant
Liechtenstein takes worker protections seriously and so should you.
Paid time off
Employees get at least four weeks of vacation per year. If they're under 20, they get five. Public holidays are also paid.
Sick leave
In year one, you're expected to pay at least three weeks' salary for illness. That obligation extends as tenure grows.
Maternity and paternity leave
Mothers are entitled to 20 weeks of paid leave-eight before birth, 12 after. Fathers are entitled to paternity leave, though it varies. There's also access to unpaid parental leave and flexible work arrangements.
Tips and resources for a successful application
Compliance isn't just paperwork-it's about doing right by your team. Get it wrong, and you're looking at penalties, back pay, or worse.
- Always submit permit applications early-it can take weeks.
- Check for annual quotas before committing to a foreign hire.
- Get advice on collective agreements in your industry.
- Register new hires within 8 days.
- Translate contracts into German.
- Keep payroll records in both languages.
- Watch for sector-specific collective agreements.
Utilizing support from EOR providers
Here's where an employer of record can make your life easier.
An EOR legally employs your workers on your behalf. You manage the day-to-day while they handle payroll, benefits, compliance, and local tax filings. You get the employee, minus the entity setup, language barriers, or legal guesswork.
Ready to hire in Liechtenstein? Pebl is your your next move
Hiring in Liechtenstein isn't complicated, but you do need to follow the steps closely. You'll need local experts who know the ins and outs of how things work and what to do if something goes wrong.
Pebl can be your partner.
Our employer of record services handle payroll, compliance, and employment logistics in Liechtenstein and 185+ countries worldwide. You get local expertise, German-language contracts, and a global payroll platform your employees can use from Liechtenstein to London. We manage the details so you can focus on your team.
When you're ready to make global hiring simple, let us know.
Disclaimer: This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided "as is," and no representations are made that the content is error-free.
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