Family benefits in Liechtenstein
The Family Compensation Fund (FAK) pays the following benefits:
- Child allowances
- Birth allowances
- Single parent allowances
- Difference compensation
- Prerequisites
Entitlement to FAK benefits arises when someone
- Descendants
- Adopted children
- Stepchildren or
- Foster children
has to look after.
Family allowances serve as partial compensation for family burdens and provide economic protection for the family. They do not constitute remuneration for services rendered and are therefore not part of the salary.
Children who have not yet reached the age of 18 are entitled to family allowances.
Full orphans who have not yet reached the age of 18 are also entitled to family allowances,
provided they are resident in Liechtenstein and no other person receives a family allowance for them.
In principle, anyone who fulfills the above-mentioned conditions for receiving family allowances is entitled to family allowances:
a) is resident in Liechtenstein under civil law;
b) has lived or was employed in Liechtenstein and is sent abroad by his Liechtenstein employer to provide
temporary services and continues to be remunerated by the latter; or
c) is employed as a cross-border commuter by a Liechtenstein employer or is subject to compulsory contributions to Liechtenstein old-age and survivors' insurance as a self-employed person.
Special provisions for cross-border commuters from Switzerland and the EEA states
If gainful employment is pursued in only one state, the family allowances are paid in accordance with the regulations of that state. If gainful employment is pursued in two contracting states (e.g. by the father in one contracting state and by the mother in the other), the allowances are paid by the contracting state in which the children reside. The other contracting state pays a differential amount if the conditions for entitlement are met and its family benefits are higher.
- for persons domiciled in Liechtenstein under civil law, from the beginning of the month in which the conditions for entitlement are met;
- for persons without civil law residence in Liechtenstein, on the day they take up employment or self-employment in Liechtenstein.
If the entitlement changes from an EEA state or Switzerland to Liechtenstein during a calendar month, this state will continue to pay family benefits for the entire calendar month in which employment or self-employment begins in Liechtenstein. Entitlement in Liechtenstein therefore only begins in the following month.
The entitlement to family allowances expires immediately or within a certain period of time if the conditions for entitlement cease to apply, in particular
- for persons not resident in Liechtenstein: on expiry of the permitted gainful employment in Liechtenstein or on becoming unemployed
- for persons not resident in Liechtenstein: in the event of interruption or termination of gainful employment due to illness, accident, pregnancy or maternity
- For children who have reached the age of 18 or if the child is married, if maintenance is payable by the spouse
Difference compensation
In principle, there is no entitlement to Liechtenstein family allowances for children who are entitled to a similar foreign allowance. If the foreign allowance is lower than the comparable allowance in Liechtenstein, the difference can be compensated under certain conditions. The compensation corresponds to the actual amount of the difference.
The difference compensation can be claimed after the end of a calendar year or earlier if the entitlement to the foreign allowance expires or the employment in Liechtenstein is terminated.
The amount of the child allowance depends on the number and age of the children.
- Child allowances amount to CHF 310 per month for each child and increase to CHF 360 per month from the beginning of the month in which the child reaches the age of 10.
- As soon as and as long as a beneficiary has more than two children entitled to an allowance, the monthly child allowance is CHF 360 for each child. For twins, the child allowances from birth are CHF 360 each.
The following regulation applies to cross-border commuters from neighboring countries:
If gainful employment is pursued both abroad and in Liechtenstein (e.g. by the father in one contracting state and by the mother in the other), the family allowances are to be paid by the contracting state in which the family resides. However, the Liechtenstein FAK will make up the difference if the foreign family allowances are lower than the Liechtenstein benefits.
Entitlement to birth allowances
Persons who at the time
- the birth of their child or
- the admission of an adopted child of no more than five years of age for the purpose of adoption
fulfill the general eligibility requirements for family allowances are entitled to birth allowances.
Birth allowances are a one-off benefit.
Amount of birth grants
Birth allowances amount to CHF 2,520 for each child born alive or stillborn after the sixth month of pregnancy, as well as for an adopted child.
Birth allowances of CHF 3,070 per child are paid for multiple births.
Entitlement to single-parent allowances
A single person who is entitled to child allowances is entitled to single-parent allowances.
The entitlement exists for each child with whom the single person lives in the same household.
Single, widowed or divorced persons are considered to be single if they do not live with a de facto partner in the same household.
Married persons are deemed to be single if they do not live in the same household with their spouse or a de facto partner and a petition or action for separation, divorce or annulment of the marriage is pending before the court; or a judicial measure (temporary injunction, decision on custody, maintenance or other judicial measure expressing separation) has been issued.
Amount of the single-parent allowance
The single-parent allowance is CHF 120 per month for each child and is paid in addition to the child allowance.
Registration of single-parent allowances
Entitlement to single-parent allowances must be claimed annually by submitting an application. The application must be accompanied by confirmation from the municipality of residence or another suitable authority of the personal details of the persons living in the household.
Maternity benefit replaces the wages of working women during their leave of absence and promotes the early development of a close bond between mothers and children.
More at: https://www.ahv.li/leistungen/fak/mutterschaftsgeld
Paternity pay replaces the salary of working fathers during their leave of absence (also applies to same-sex parents). It supports an equal division of caring responsibilities, promotes the early development of a close bond between fathers and children and contributes to equality in the workplace.
Parental allowance replaces part of the income of working mothers and fathers during their leave of absence to care for their child (parental leave). It makes it easier to combine family and career and promotes gender equality in the workplace.