Support for indirectly affected individual and micro-enterprises

As a result of a financial ordinance by the Liechtenstein government, financial support is now available to those individual and micro enterprises, that have been able to maintain their business activities but are affected by a loss of earnings due to regulations concerning the COVID-19-pandemic and are not entitled to receive compensation for short-time work or other support measures. This applies in particular to companies whose customers or suppliers have been shut down by the authorities or which are experiencing a decreasing number of customers.

Eligible for support are self-employed persons whose main occupation is that of sole proprietor or manager/shareholder of a micro-enterprise. Further eligible for support are persons who are not entitled to short-time work compensation and who are employed by a company, such as co-directors or spouses.

The person applying for assistance on behalf of the company must carry out his main occupation for the company concerned. Therefore, only persons who are mainly self-employed are entitled for financial support. This is the case if the annual income of this person from self-employment amounts to more than 60% of his total personal income from self-employment and employment, board compensation and insurance benefits. The annual income must exceed CHF 10'000. The information in the tax return is decisive. If none is available, equivalent proof must be provided.

Those individual and micro-enterprises that are indirectly affected by the Corona situation will receive support of a maximum of CHF 4,000 per month, retroactively as of 01.04.2020, depending on acquisition or gross salary per year. The support is provided for the period from April 1st 2020 to June 30th 2020.

In the case of assisting spouses or co-executives, the amount of CHF 4'000 can be increased by 50% for one additional person on request, thus up to a maximum of CHF 6'000. However, companies with an annual income of more than CHF 126'000 are not eligible.

The directive on the details of support for individual and micro enterprises indirectly affected by the pandemic and the application form are available at: https://corona.avw.li/beitrag-fuer-einzel-und-kleinstunternehmen.html

COVID-19 daily allowance

Employers who have made wage payments to employees who are prevented from working for a long and unforeseeable period of time due to official measures in connection with the corona pandemic are compensated for continued wage payments with the COVID-19 daily allowance. This applies in the following cases:

  • leave of absence as a particularly vulnerable employee, if the completion of work obligations from home from the current place of residence ("home office") cannot be made possible by the employer by means of appropriate organisational and technical measures and the employer does not meet the requirements for work on site or cannot assign a substitute work on site;
  • Self-quarantine after close contact with a person suffering from an acute respiratory disease, provided that it is not possible to perform work duties from home or from the current location ("home office");
  • If cross-border employees cannot reach their place of work due to the regulations of their state of residence, in particular in quarantine areas, provided that the employer is unable to carry out the work obligations from home or from the current place of residence ("home office") by means of appropriate organisational and technical measures.

Employees who claim COVID-19 daily allowance are not entitled to short-time work compensation. However, in contrast to short-time work compensation, the daily allowance replaces 100% of the employee's salary and is ultimately paid by the Principality of Liechtenstein. The payment is arranged by health insurance companies. However, only having compulsory health insurance entitles to receive COVID-19 daily allowance.

Originally published 11 May, 2020

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.