With the shift to remote working, companies across the globe are increasingly seeking top-tier, remote talent beyond the corporate HQ. Liechtenstein offers an attractive talent pool thanks to a highly educated workforce, a booming tech sector and proximity to thriving European markets including Switzerland, France, and Germany.
When it comes to hiring talent from Liechtenstein, salaries aren’t the only monetary consideration to factor into your budget. It is important to consider the costs of setting up an employment package. This includes tax contributions, social security contributions, overtime and vacation pay, stipends and benefits. All of these elements must be taken into account before beginning the hiring process.
We analyzed the costs of hiring an employee in Liechtenstein, including mandatory and optional expenses. This will help you expand your global reach without increasing hiring costs.
Mandatory Costs of Hiring in Liechtenstein
Mandatory hiring costs are non-negotiable expenses when hiring remote, Liechtenstein-based talent. Proper accounting of salaries, taxes, overtime pay, and vacation pay is essential. Otherwise, you may break local labor laws and regulations. Mandatory costs include:
Salary
There is no mandatory minimum wage in Liechtenstein, but as one of the world’s wealthiest countries, average salaries are on par with what you would expect to pay for a United States-based hire.
The average salary in Liechtenstein ranges from $3,500 – $9,000 Swiss Francs, or $3,896.41 – $10,019.34 USD. However, salaries vary widely across industries and job types, as is the case in most countries. To offer a competitive salary, employers must consider the type of job and the skillset required for success.
Taxes and Benefits
All employers are required to contribute 12.5% in payroll taxes.
- 9.6%: Old age, survivors, and disability insurance
- 1.9%: Family compensation fund
- 1%: Unemployment insurance
- 0.1%: Occupational accident insurance
- Occupational pension scheme: The employer’s share is usually one-half
Overtime Pay
Overtime pay in Liechtenstein is generally paid at a premium rate, which is usually 25% above the regular hourly rate. However, this may vary depending on the specific provisions of the employment contract or collective bargaining agreement.
Severance Pay
Employees have a pro-rata entitlement to holidays and other benefits, such as bonus payments or share-based remuneration, if the working relationship ends within a calendar year, provided that these payments qualify as a part of the salary. The employment contract may also provide severance pay, compensation for a non-compete provision, or other terms.
Supplementary Costs of Hiring in Liechtenstein
When the world is your competition, it pays to incentivize new and existing hires with attractive supplementary benefits like medical, dental, vision, life insurance, retirement savings plans and other stipends and perks.
Offering attractive supplementary benefits boosts morale and increases retention. This lowers onboarding costs, helping to establish a strong, remote team you can rely on.
Benefits
Offering a solid benefits package shows job seekers and employees that you value your team. Many employers offer private health insurance as a benefit to employees, which covers medical expenses not covered by the public health system. In Liechtenstein, there are a variety of supplementary benefits certain companies offer.
Typical supplementary benefits can include:
- Medical Insurance
- Retirement Contributions/Retirement Benefits
- Life Insurance
- Disability Benefits
An EOR, like Borderless, offers localized benefits packages to suit your needs. In addition to health insurance, it’s wise to add extra perks to your benefits package. Consider offering a health and wellness spending account, professional development opportunities, and monthly subscriptions. These are just a few attractive offerings that can help incentivize new hires.
Bonuses and Extras
Employees customarily receive a Christmas Bonus, known as Weihnachtsgeld. It is 100% of the monthly old-age pension and is typically paid in December.
Average Cost of Hiring
Below is an estimate based on a salary of $100,000 for an employee in Liechtenstein. This salary is designed to make it easier to calculate. It will vary depending on your hiring goals. These include the employment contract details, the candidate's experience and education, and the type of position.
Work with Borderless
Growing your remote, global team and hiring Liechtenstein-based talent can seem overwhelming, especially when you consider all the associated costs. Leave the headache to Borderless. Working with an Employer of Record (EOR) handles all the administrative work, ensuring compliance and giving you cost savings, so you can focus on growing your business.
To get started, book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
