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Payroll and Benefits Guide Andorra

Last updated: Jun 07, 2023

Currency
Euro (EUR)
Employer Taxes
15.50%
Payroll Frequency
Monthly
Employee Costs
6.50%
Capital
Andorra la Vella
Date Format
dd/mm/yyyy
Fiscal Year
January1 - December 31
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Contribution

 

Employer Employer Payroll Contributions
15.50% Social Security
15.50% Total Employment Cost
Employee Employee Payroll Contributions
6.50% Social Security
6.50% Total Employee Cost
Employee Income Tax
0% Up to 24,000 EUR
5% Between 24,001 EUR and 40,000 EUR
10% More than 40,000 EUR

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

The minimum wage in Andorra is 1,286.13 EUR per month, 7.42 EUR per hour.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

Salaries are paid monthly, usually on the last working day of the month, as stipulated in the employment contract.

13th Salary

13th-month salary payment in Andorra is not mandatory, and bonuses are granted at the employer’s discretion; these tend to be performance-based.

Working Hours

General

The standard working hours in Andorra are 40 hours per week and 8 hours per day, with a thirty minutes break for every six hours of work.

Overtime

All work more than the standard working hours a week is to be paid as overtime and is regulated by employment contract/collective agreements.

  • The first four hours of overtime per week shall be paid at not less than 25 percent of the hourly wage.
  • The next four hours of overtime shall be paid at not less than 50 percent of the hourly wage.
  • In excess of eight hours of overtime per week, the increase in base pay shall not be less than 75 percent of the hourly wage.

Leave

Annual Leave (vacation)

Employees are entitled to a minimum of 30 paid vacation days (stipulated in the Labor Agreement) once they have been employed for at least twelve months. Prior to the completion of one year service annual leave is pro-rated.

 

Public Holidays

Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
6 Jan 2024 Saturday Epiphany
12 Feb 2024 Monday Carnival
14 Mar 2024 Thursday Constitution Day
29 Mar 2024 Friday Good Friday
1 Apr 2024 Monday Easter Monday
1 May 2024 Wednesday Labor Day
20 May 2024 Monday Whit Monday
15 Aug 2024 Thursday Assumption of Mary
8 Sep 2024 Sunday National Day
1 Nov 2024 Friday All Saints Day
8 Dec 2024 Sunday Immaculate Conception
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday St. Stephen’s Day

Sick Days

Employees are entitled to 12 months of sick leave, which may be extended in six month increments for up to three years. Through the initial medical certificate, the doctor or dentist prescribes the insured’s medical leave and the insured person must hand in the initial medical certificate issued by the doctor or dentist to the company within 48 hours.

Employees are paid a varied proportion of their salary depending on how much sick leave they require by the social security system, CASS.

Maternity Leave

The Government has implemented Maternity Leave in Andorra paid by the social security.

The current maternity leave entitlement in Andorra is 16 weeks paid maternity leave, increasing to 18 weeks if there are medical complications or multiple births.

Paternity Leave

Fathers are entitled to receive up to 14 days of paternity leave in the first six months of the birth of a child at full pay.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

Employment law protects employees in Andorra by restricting the grounds on which an employer can dismiss an employee. Full details of the dismissal regulations of Andorra are outlined in the Labor Law. Employers in Andorra can terminate employees with or without cause.

Notice Period

The notice period for all employees varies according to the length of service of the employee, after six months service the notice period is one day notice per month worked up to a maximum of 90 days.

Severance Pay

Severance payments due are stipulated in the employment contract, but the employer must generally pay  financial compensation to anyone who has completed at least six months service, at the rate of one and a half days’ salary per month worked, up to a maximum of 270 days.

Probation Period

The probationary period in Andorra is dependent on the type of role and is stipulated within the employment agreement. In general, probation periods are typically three and six months.

VISA

For all the permit requests there must have a job offer letter from the company established in the territory of Andorra.  There are two groups of permits, depending on the residence time required:

  • Work and permanent residence permits: The first authorization granted by the Andorran government is for a period of one year, renewable 3 times every two years. Once these deadlines have been met, the renewals will be carried out in 10-year terms.
  • Work and temporary residence: The period of authorization must be specified in advance. These types of permits will be divided into two subgroups:
    • Work temporarily and reside in Andorra.
    • Work temporarily and reside in the border area (outside the territory of Andorra)

VAT

The standard rate of VAT in Andorra is 4.50%.

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Public Holidays Calendar

Andorra
Download:
CSV
PDF
ICS
Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
6 Jan 2024 Saturday Epiphany
12 Feb 2024 Monday Carnival
14 Mar 2024 Thursday Constitution Day
29 Mar 2024 Friday Good Friday
1 Apr 2024 Monday Easter Monday
1 May 2024 Wednesday Labor Day
20 May 2024 Monday Whit Monday
15 Aug 2024 Thursday Assumption of Mary
8 Sep 2024 Sunday National Day
1 Nov 2024 Friday All Saints Day
8 Dec 2024 Sunday Immaculate Conception
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday St. Stephen’s Day