To hire talents from Andorra, one should be aware of the rules, labor laws and other working conditions prevailing in the country. Learn those details from the following sections.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
To hire talents from Andorra, one should be aware of the rules, labor laws and other working conditions prevailing in the country. Learn those details from the following sections.
Probation Period
To hire talents from Andorra, one should be aware of the rules, labor laws and other working conditions prevailing in the country. Learn those details from the following sections.
13th Month Pay
It is not mandatory to pay the 13th-month salary in Andorra.
Employee Benefits
- Paid national holidays
- Sick leave
- Maternity leave
- Social security
Andorra follows a monthly payroll cycle.
The national minimum wage in Andorra is 1286 EUR per month.
Andorra limits overtime to 2 hours a day, 15 hours in a week, 50 hours during one whole month, and a maximum of 426 hours a year. The compensation for the overtime is as follows: 25% extra for the first 4 hours, 50% for the next four, and 75% beyond these stipulated hours.
Employer Payroll Cost:
Contribution to social security from the employer side is 15.5% of an employee’s gross monthly salary.
Employee Payroll Cost:
Contribution to social security from the employee side is 6.5% of one’s own gross monthly salary.
Employee Income Tax
The general rate of tax followed is at a flat 10%.
VAT
Andorra follows a standard rate of 4.5%.
The circumstances under which an employment contract may be terminated include the following:
- Expiry of employment contract
- Mutual understanding
- Death or permanent disability of the employee
- Worker’s declaration of the ban
Notice period in Andorra will vary depending on the agreement between the employer and employee.
Severance pay
Employees terminated without a valid cause are entitled to severance pay based on the term of their employment.
| Employment term |
Severance pay |
| Up to 5 years of service |
2 months’ salary + 1 week’s pay for each completed year |
| Above 5 years and less than 15 years |
3 months’ salary + 2 weeks’ pay for each completed year |
| Beyond 15 years of service |
6 month’s salary + 3 weeks’ pay for each completed year |
The foreign employees need to go through some steps to stay and work in Andorra, which includes:
- Work permit
- Pass through immigration quota
- Medical Insurance
- Property ownership deed or lease contract