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Andorra, with a population of just over 80,000, is a popular tourist destination attracting over 10 million visitors who explore its scenic forests, hills, and valleys.
Situated between France and Spain and enjoying duty-free status, Andorra offers favorable conditions for businesses.
Catalan and Spanish are the official languages, with the population generally bilingual, advantageous for businesses targeting Spanish-speaking markets.
Operating in the Central European Time (CET) zone enables synchronous communication and collaboration with nearby regions.
In Andorra, a contract is necessary to establish a legal employment relationship, and it must be in writing, with no specific requirements regarding its content. However, there are two key technicalities outlined in Andorra's labor law that contracts must follow:
In Andorra, the duration of the probationary period varies depending on the position's nature and is determined by what is specified in the employment contract. Typically, probation periods range from three to six months.
In Andorra, the standard work schedule consists of 40 hours per week and 8 hours per day, with a mandatory thirty-minute break after every six hours of work.
In Andorra, employees can work overtime up to 12 hours per week, 48 hours per month, and 426 hours per year under certain conditions. If there's no policy on overtime compensation, each extra hour worked is paid at a rate of at least 40% of the regular salary.
The current minimum wage in Andorra is 1,376.27 EUR per month in 2024. It became valid on January 1, 2024.
In Andorra, the 13th-month salary provision is optional, and bonuses are typically granted based on performance, solely at the employer's discretion.
Andorra operates a 'Pay As You Earn' income tax system. Individual income tax rates range from 0% to 10%, following a progressive scale for calculation.
The retirement branch of Andorra's social security covers the situation of loss of income due to cessation of work or economic activity derived from age and is made up of the retirement pension and temporary and lifetime widowhood pensions.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Andorra tailored to your needs.
Employee contracts can generally be terminated at will, as long as employees are notified before they’re laid off.
In Andorra, the notice period varies based on contract terms, but typically, it's one day for each month of service, with a maximum limit of 90 days.
Employees in Andorra who have worked for at least six months are entitled to severance payments as per their employment contract. Typically, employers compensate them at a rate of one and a half days' salary for each month worked, with a maximum cap of 270 days.
Employees are entitled to take off work on 14 public holidays.
In Andorra, statutory benefits are administered by the social security agency, Caixa Andorrana Seguretat Social (CASS). These benefits include:
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
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