Employment Law

Employment Contracts in Andorra

Employment contracts in Andorra can theoretically be oral or written, but we strongly recommend that all employees use written contracts. Your employment contract should include any relevant details of the agreement, such as remuneration, should be written in Catalan, and should be in euros.

Fixed Term

Indefinite

Andorra Working Hours

The standard working week in Andorra is 40 hours, divided into five days. In addition, the employer must pay overtime at 125% for the first 4 hours, 150% for the 5th to 8th hours, and 175% for the 9 hours and above. Overtime is also limited to two hours per day.

Holiday Policy

Andorra Holidays

Employees in Andorra are entitled to six weeks (30 days) of paid vacation per year.

Andorra Sick Leave

Employees in Andorra are legally entitled to paid sick leave. The rate of pay for the first 30 days of absence is 53% or regular pay, 66% for days 31 to 540, and 60% for the final period.

Parental Leave in Andorra

Female employees in Andorra are entitled to 16 weeks of fully paid maternity leave. Fathers are entitled to 14 days of fully paid paternity leave, but mothers can choose to transfer part of their leave entitlement after six weeks of use.

Taxes in Andorra

Andorra has very low income taxes compared to most countries, which is one of the driving forces of its economy. Rates range from 0% to 10%, depending on income level. Likewise, corporate tax is relatively low, with a standard rate of 10%.

Health Insurance in Andorra

Andorra has state-funded universal healthcare, so employers are not required to provide private health insurance to their employees.

Termination and Severance in Andorra

Employees in Andorra are entitled to receive notice of dismissal. The employee accrues one day's notice for each month with the employer, up to a maximum of 90 days. These notice periods do not apply to workers who are on probation, which can be between one month and three months in length, depending on the seniority of the position.

• disciplinary action
• Persistent poor health
• Fixed-term employment contract expires or is not renewed
• retirement or pension

If an employee has worked continuously for five years or more, they may be entitled to a gratuity. This amount is equal to the employee's last salary received x 15/26 x number of years of service.

Working with our Andorra PEO, Remoly's team of local experts can provide assistance in drafting strong employment contracts that comply with local regulations.

Salary and Benefits

Compensation Law in Andorra

The minimum wage for employees in Andorra is €5.63 per hour.

Benefits Management in Andorra

Setting up a benefits system for employees in Andorra can be confusing if you're not familiar with the country's complex labor laws, language and cultural differences, so delays are common.

Remoly can simplify your Andorra benefits administration, our Andorra experts will set up and manage everything for you and help you focus on successfully expanding your business.