<p>Psychological detachment from work implies mentally disconnecting from work during off-job time. Using representative longitudinal data from the German Socio-Economic Panel, we identify psychological detachment from work as a key driver of employee well-being. This finding holds for a broad set of well-being indicators, including emotional responses, job satisfaction, life domain satisfactions, and global life satisfaction. Importantly, heterogeneity analyses reveal that detachment affects different subgroups of employees to a similar extent, indicating that the impact of detachment on employee well-being is universal. We further find that detachment mattered for employee well-being before as well as during the Covid-19 pandemic. Overall, organizations and policy makers could foster psychological detachment to increase employee well-being. Given that employees nowadays search for happiness at work, ensuring psychological detachment becomes also relevant in the war for talent.</p>