Social Security in Liechtenstein: AHV and Contributions

Statutory social contributions in Liechtenstein consist of four parts settled jointly through the Liechtenstein AHV-IV-FAK: old-age and survivors' insurance (AHV), disability insurance (IV), the family equalisation fund (FAK) and an administration-cost contribution (VK). Unemployment insurance runs separately.

• AHV — 8.25 % in total: you carry 4.025 %, the employer 4.225 %.
• IV — 1.35 % in total, split evenly: 0.675 % and 0.675 %.
• FAK — 2.1 % in total, but only 0.2 % from you; the employer pays 1.9 %.
• VK (administration costs) — 0.585 %, employer only.

On CHF 5’000 gross that is CHF 245 a month for AHV, IV and FAK. What follows in tax is in the income tax guide.

Unlike AHV and IV, where both sides carry almost the same, the family equalisation fund is almost entirely the employer's business — and the administration-cost contribution is theirs alone. That explains the gap between 4.9 and 7.385 percent.

In practice: a gross salary of CHF 5’000 costs the employer around CHF 5’369 in statutory contributions alone — before pension fund, accident insurance and sick-pay cover. If you are negotiating salary, it helps to know this mark-up; it is part of the calculation being made on the other side of the table.

Unemployment insurance costs 1 percent of annual salary in total, and employer and employee each carry half. Your share is therefore 0.5 percent — CHF 25 on CHF 5’000 a month.

The ceiling is what matters: no contributions are levied on salary above CHF 126’000 a year. The total contribution is therefore at most CHF 1’260 a year, your share at most CHF 630. The ceiling applies per employment relationship; for anyone joining or leaving mid-year it is scaled down to CHF 350 per day.

Alongside AHV as the first pillar there is occupational provision under the BPVG — the second pillar. It is the largest deduction after the statutory charges, and the only one with no nationwide rate.

The contribution depends on your employer's scheme and on your age: the older you are, the higher the savings component. Employee shares in the mid single-digit percent range are usual. What applies to you is in your pension statement or the scheme's rules — do not rely on a rule of thumb, the differences between schemes are substantial.

That is exactly why the pension rate can be adjusted by hand in the salary calculator — with a default that is only a starting point.

The FAK, into which you pay 0.2 percent, also pays out. Family allowances do not count as salary and are therefore neither taxable nor subject to contributions:

• Child allowance — CHF 310 a month per child, rising to CHF 360 from the month the child turns ten. The entitlement runs to the 18th birthday.
• Birth allowance — CHF 2’300 per child, or CHF 2’800 per child for multiple births.
• Single-parent allowance — paid on top of the child allowance if you are single and live with the child in the same household.
• Difference payment — if a lower allowance is drawn in the country of residence, Liechtenstein pays the difference. The key point for cross-border commuters.

The ordinary retirement age in Liechtenstein is 65 for everyone born in 1958 or later. For those born up to and including 1957, the earlier limit of 64 applied.

For cross-border commuters the rule is clear: you are insured where you work. Anyone employed in Liechtenstein pays AHV, IV, FAK and unemployment insurance here — regardless of whether they live in Switzerland or Austria. Contribution years are credited between countries, and the pension later comes pro rata from each system. What this means for tax and permits is in the cross-border commuter guide.

Open positions covered by Liechtenstein social insurance are in Triesen, Vaduz and Schaan, or grouped under all jobs in Liechtenstein. This article does not replace individual social-insurance advice.