Social Security Contributions — Liechtenstein

Employee pays 4.7% for old-age/survivors insurance (AHV) and disability insurance (IV). Combined rate, no separate calculation. Maximum 18% for very high earners and self-employed. Foundation of Swiss-Liechtenstein social security system.

Employee pays 0.5% unemployment insurance (ALV) on first CHF 126,000 of annual compensation. Income above cap not subject to unemployment contributions. Relatively low rate. Provides job loss protection.

Total mandatory employee contributions approximately 5.2% (4.7% + 0.5%). Does not include occupational pension (2nd pillar) which starts age 25 - adds another 7-18% shared with employer. Health insurance separate (individual premiums).

Employer pays 4.9% for AHV/IV (slightly more than employee 4.7%). Funds old-age pensions and disability insurance. Employer remits combined employee + employer contributions to authorities. Administrative fees added (2.5% of total).

Employer pays 1.9% to Family Allowances Fund (FAK). Employee pays nothing for this. Funds child allowances and education allowances paid to parents. Employer-funded social benefit. Significant child support (CHF 280-430/month per child).

Employer pays 0.5% unemployment insurance (matches employee). Also pays occupational accident insurance (UVG) premium ~0.1-1% depending on industry risk. Full employer cost. Provides workplace injury/illness coverage.

Employer must contribute at least 8% to occupational pension (BVG/2nd pillar). Actual rates vary by pension fund. Mandatory for employees 25+ earning above CHF 22,050. Can be 50/50 split or employer-heavy. Major additional cost.

State-run old-age/survivors/disability insurance. Mandatory for all residents/workers. Funded by current contributions (pay-as-you-go). Minimum pension CHF 1,190/month, maximum CHF 2,380/month. Covers basic living needs. Very well-funded (fund covers 9+ years expenses).

Mandatory occupational pension for employees 25+ with salary above CHF 22,050. Funded system (each person has account). Employer + employee contributions. Goal: maintain living standard. Portable - follows worker. 15 pension funds currently (down from 33 in 2010).

Voluntary private pension savings (3a/3b). Tax-advantaged: contributions fully deductible within limits. Encourages additional retirement savings. Can be life insurance or bank account. Flexible withdrawal rules. Complements mandatory pillars.