As a business location, Liechtenstein is very innovative and rich in opportunities. The number of jobs is higher than the number of people living here. Every day, many workers commute to Liechtenstein from neighboring countries.
Social insurances are financial protection. For example, in old age, if you no longer work, if you get sick or have an accident and can no longer work. In addition, there is financial protection for relatives if the insured person dies.
This coverage is provided on the one hand by private initiative, and on the other hand by social insurance and social assistance.
With the exception of the health insurance, contributions must be paid to the above-mentioned social insurances depending on the salary.
The employer and the employee each have to pay a certain share. The state supports this social insurance system and also makes a financial contribution.
Sickness and maternity are covered by health insurance. All persons who have a residence in Liechtenstein must insure themselves with a health insurance company. The health insurance company covers the costs of medical care. In addition to the insurance premium, the insured person has to bear part of the costs himself.
Provision for old age, death and disability is based on the three-pillar principle.
1. Pillar: This is the state pension plan.
It covers all persons who are gainfully employed in Liechtenstein and those who are not gainfully employed and reside in Liechtenstein, such as housewives or students.
Settlement takes place via the AHV-IV-FAK institution.
2. Pillar 1: This is the occupational pension plan for employees above a certain minimum income. It supplements the benefits of the 1st pillar.
3. Pillar: It is the private pension provision. It is not compulsory and refers to private insurance or pension provision.
Old-age and survivors' insurance (AHV)
Women and men born up to and including 1957 retire at age 64. From the year of birth 1958 and younger, the retirement age starts at 65. This means that they then no longer have to work and receive a pension, i.e. money. In order to receive a pension, one must have worked a certain amount of time or paid money into the AHV.
For more information, including early retirement or pension deferral, see:
Disability Insurance (IV)
Disability pension means that people with a disability and support needs get money.
This is to enable them to support themselves wholly or partly by their own efforts. It is important that they can live as independent a life as possible.
Inclusion measures: These come first. People should be able to do paid work despite a disability. In some cases, however, this is not possible. Or not in the way one would like. Then these people get a disability pension.
The Family Compensation Fund (FAK)
The FAK pays a one-time birth allowance and a monthly child allowance (Kindergeld) to parents residing in Liechtenstein and to all parents who are gainfully employed in Liechtenstein.
Unemployment insurance (ALV)
Unemployment means that a person has no work. This can have various reasons.
Through unemployment insurance, an insured person receives daily benefits. The daily allowances are limited. You can find the forms and directions here:
Social assistance (WSH)
Social assistance is an offer from the state. It supports people who have too little money to live. Economic social assistance is given to people who receive no or too little money from social insurances such as unemployment insurance, IV or AHV. The goal of social assistance is that these people can soon provide for themselves again. You can make an appointment for an initial consultation at the Office of Social Services.
Further information can be found here:
Property insurance includes, for example:
Here is a good summary of the various insurance policies: