Guide to employment, payroll and benefits in

Andorra

Rivermate offers complete payroll, benefits and compliance services for

Andorra

01. Overview

Last updated: 

August 19, 2021

Currency
Euro
Capital
Andorra la Vella
Ease of doing business
Language
Catalana
Population
77265
GDP growth
1.87%

02. Grow your team in

Andorra

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Andorra

, particularly if you don't have established local relationships. You can hire employees in

Andorra

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Andorra, historically the Principality of Andorra, is a independent landlocked microstate in the eastern Pyrenees on the Iberian Peninsula, bordered to the north by France and to the south by Spain. Andorra was ruled by the count of Urgell until 988, when it was transferred to the Roman Catholic Diocese of Urgell. It is thought to have been founded by Charlemagne. In 1278, a charter founded the current principality. The Bishop of Urgell in Catalonia, Spain, and the President of France are its co-princes. Andorra is Europe's sixth smallest nation, with a land area of 468 square kilometers and a population of 77,006. The Andorrans are a Romance ethnic group who are descended from Catalans. Andorra is the world's 16th smallest nation in terms of land area and the 11th smallest in terms of population. Andorra la Vella, the country's capital, is Europe's highest capital city, at 1,023 meters above sea level. Catalan is the official language, but Spanish, Portuguese, and French are also widely spoken. Andorra receives an estimated 10.2 million visitors per year. Even though Andorra is not a member of the European Union, the euro is the country's official currency. Since 1993, it has been a member of the United Nations. According to the Global Burden of Disease Study, Andorra had the highest life expectancy in the world in 2013, at 81 years.

04. Public holidays

05. Types of leave

Paid time off

Employees are entitled to 30 days of paid yearly vacation in addition to public holidays. More vacation days may be included in employment agreements and collective bargaining agreements. A collective agreement or an agreement between the company and the employee is usually used to plan an employee's leave. If no such agreement exists, the employer arranges the leave based on the company's needs. Employees must be told at least 45 days in advance of when they will be on leave.

Unless the employer and employee agree differently, leave must be utilized within the calendar year in which it is earned, however it may be used in the first quarter of the next calendar year in extraordinary circumstances.

Public holidays

There are twenty public holidays observed in Andorra.

Sick days

Employees are entitled to 12 months of sick leave, which can be extended for up to three years in six-month increments. Employees are paid a varied proportion of their salary depending on how much sick leave they require. Salary is determined by the employee's average daily earnings over the previous 12 months of employment, or minimum pay if no earnings are available.

Maternity leave

In the event of multiple births or adoptions, female employees are entitled to 20 weeks of paid maternity leave, plus two additional weeks for each subsequent kid. The expecting woman can start her maternity leave up to four weeks before the due date. Benefits are provided at 100% of a female employee's average daily wages for the previous 12 months worked out of the previous 24 months.

Paternity leave

The father receives a portion of the female employee's maternity benefit either after the kid is born or after the female employee returns to work. Beginning six weeks after the birth, the child's father, or the mother's spouse or partner, has the option of taking the balance of the mother's maternity leave.

Parental leave

There are no provisions in the Andorra law regarding parental leave.

Other leave

06. Employment termination

Termination process

The contract may be terminated in the following circumstances: upon the expiration of the term or termination of the work for which the employee was hired; upon mutual agreement of the parties; upon the death or permanent disability of the person worker from performing the work contracted; upon the death, incapacity, or retirement of the employed person; upon the worker's deprivation of liberty by a court; upon the worker's declaration of ban.


The employer may terminate the contract by providing a notice stating that one day per month will be worked up to a maximum of 90 days and that compensation will be paid.


An employee may terminate the contract in the following circumstances: without prior notice during the trial period. The termination comes with ten days notice if the employee has worked for the company for less than a year; plus one day for each month worked, up to a maximum of thirty days if the employee has worked for the company for more than a year; and without prior notice if an accident or force majeure occurs.

Notice period

There is a one-day notice period for each month of service, up to a maximum of 90 days. Employment contracts may have a variety of various notice provisions. Employees are expected to provide their employer between 14 and 30 days notice of their resignation.

Severance pay

If no just cause is established, the discharged employee is entitled to indemnification under Act No. 80, referred to as the "mesada." This payment serves as the sole remedy for an employee alleging unjust dismissal. If an employee is terminated without cause, he or she is entitled to the equivalent of two months' salary plus one week's pay for each full year of service, if the employee has worked for the employer for up to five years. If the employee has worked for more than five years but less than fifteen, he is entitled to three months' salary plus two weeks' pay for each year of service. Employees who have worked for their employer for at least 15 years are entitled to six months' salary plus three weeks' pay for each year of service.


Regardless of the foregoing, an employee hired on or after January 26, 2017 who is terminated without cause is entitled to severance pay consisting of twelve weeks' salary (the Law states "three months," but for the purposes of this calculation, a "month" is defined as four weeks), and an additional amount equal to two weeks' salary for each full year of service. Compensation is capped at nine "months," or thirty-six weeks.

Probation period

Probation periods must be agreed upon in writing for both indefinite and fixed-term contracts and cannot exceed one month. Probation periods may be up to three months for managerial positions where the agreed remuneration exceeds three times the minimum salary.

07. Working hours

General

In Andorra, the standard workweek is 40 hours spread over five days. Each week, employees must receive at least one day off and a minimum of 12 hours of rest in between workdays.


A fifteen-day notice is required in advance of any weekly hour adjustment for operational reasons. This is not always the case for managers or executives who have negotiated different terms with their employer. Additionally, each employee is entitled to a 30-minute break at the end of each six-hour workday. Weekly working hours, including overtime, cannot exceed 60 hours per week. Additionally, the maximum daily work period is 12 hours, and the annual work hours must not exceed 1800.

Overtime

Employees may work up to two hours per day, fifteen hours per week, and fifty hours per month in overtime. However, overtime is permitted only when a staff shortage necessitates that available employees work additional hours or when the business's activities temporarily increase.


Unless otherwise specified in the employment agreement, the payment increases by 20% for overnight work. There will be a 25% surcharge for general overtime up to four hours, 50% for hours between four and eight, and 75% for any additional hours.

08. Minimum wage

General

Andorra recently increased the national minimum wage to 1,121.47 EUR or 1330 USD per month in 2021. However, the majority of jobs pay significantly more than this minimum and include tips, commissions, and incentives. Employees working night shifts between 10 p.m. and 6 a.m. must earn at least 20% more than the federal minimum wage.

09. Employee benefits

General

Andorra offers public healthcare that is funded via social security payments, which cover varying percentages of general healthcare expenditures, hospitalization costs, and work-related injury costs. Employers may also provide private health insurance.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Andorra

to hire a team takes time, money, and effort. The labor law in

Andorra

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Andorra

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Andorra

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Andorra

via our Employer of Record / PEO solution.

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