Nestled on the border between France and Spain, Andorra is a tiny country made up of rugged mountains, steep valleys and beautiful lakes. Andorra is in fact Europe’s sixth smallest country covering an area of just 468 square kilometers. Its economy is based on an interdependent network of trade, commerce, and tourism, which represent nearly 60% of the economy, followed by the financial sector.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Andorra.
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Capital :
Andorra la Vella
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Currency :
Euro (€, EUR)
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Languages spoken :
Catalan
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Population :
77,354 (2021 est.)
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Minimum wage 2023 :
€1,376.27 per month
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Cost of Living index :
$$$ (53 of 139 nations)
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Payroll Frequency :
Monthly/Biweekly
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VAT - standard rate :
4.5%
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GDP - real growth rate :
8.9% (2021 est.)
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The holidays mentioned below are valid for the year 2024.
The approximate time for sharing the contract with an employee in Andorra is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
Law 4/2022 establishes that the company must submit monthly to the CASS, the hours of actual work done during the settlement period individually for each worker.
The ordinary working hours for employees are 40 hours per week.
When the daily working hours are equal to or greater than six uninterrupted hours, the salaried person has the right to a paid break of a minimum duration of 30 minutes fixed by the company.
Employees can agree to work overtime up to a maximum of 12 hours per week, 48 hours per month, and 426 hours per year in certain circumstances.
If there is no agreement or collective agreement of the company regarding overtime pay, or if it is not regulated, each overtime hour is paid with an increase that cannot be less than 40% of the fixed salary.
In the event that a probation period is agreed upon, it must be stated in the contract, whatever the duration or method, and it cannot exceed two months.
Employees in indefinite contracts must observe the notice periods as follows:
| Service Period | Notice Period |
| Less than 1 year | 10 days |
| More than 1 year | 15 days |
In contracts of an indefinite period, the company can dismiss the employee by means of a notice communicated 12 days in advance per year worked, or the proportional part corresponding to the shorter time worked, with a maximum of 30 days.
Mandatory paid holidays are a minimum of 30 calendar days per year, or a lower number of days calculated proportionally to the time worked in the event that the actual work has been less than a year.
By agreement or collective agreement of the company, or by mutual agreement between the company and the employee a, the 30 calendar days per year can be replaced by 22 working days per year, or the number of days proportional to the time worked in case the actual work has been less than a year.
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.
Employees are entitled to one to four months, extendable for equal periods up to a maximum of two years of unpaid leave, in the event of a very serious illness or long-term hospitalization of a child under the age of 18 that requires the continued presence of one of their parents.
The employment relationship is suspended for 20 weeks due to maternity leave. In the case of multiple births, the period is extended by two more weeks for each child, as well as in the case of a duly recognized disability of the mother, with a degree of impairment of 60% or more, or of the child’s disability determined by a pediatrician who has granted an agreement with the Andorran Social Security Fund, in all cases in accordance with the assessment scale of the National Assessment Commission (Conava).
The employment relationship is suspended for the father or partner who has legally recognized the child for four weeks due to rest. This period can be extended for up to one more week when the child has a disability determined by a pediatrician who has granted an agreement with the Andorran Social Security Fund, in accordance with the assessment scale of the National Evaluation Commission (Conava).
The employment relationship is suspended for 20 weeks due to adoption leave, and in case of multiple adoption, the period is extended by two more weeks for each adopted child, as well as in the case of a recognized disability of one of the adopters, with a degree of impairment of 60% or more, or of the child’s disability as determined by a pediatrician who has granted an agreement with the Andorran Social Security Fund, in accordance with the assessment scale of the National Valuation Commission (Conava).
| Reason For Leave | Leave Duration |
| Marriage or civil union | 10 days |
| Death of the spouse |
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| Wife giving birth | 4 days |
| Serious illness or surgical intervention of the spouse of the salaried person | 2 days |
| Serious illness or surgical intervention for a dependent child or a foster child or adolescent under the age of 18 | 4 days |
| Change of address | 1 day |
| To fulfill the civic or social obligations imposed by law or recognized by custom | The time necessary |
| To attend the exams or tests for reasons of work-related training | 6 calendar days or 12.5 days within a calendar year. |
The salaried person has the right to be absent from the workplace, without receiving, however, the salary, and must notify the company in advance, for the following reasons and during the following periods:
| Reason For Leave | Leave Duration |
| Marriage or civil union | 5 complementary calendar days. |
| Death of the spouse or the equivalent legal or de facto partner of the salaried person, and of ascendants, descendants or relatives up to the second degree | 2 days |
| Serious illness or surgical intervention of the spouse or the legal or de facto equivalent partner of the salaried person, of ascendants and descendants within the first degree of consanguinity and adoption, and of siblings of the salaried person | 2 days |
| A very serious illness or long-term hospitalization of a child under the age of 18 that requires the continued presence of 1 of their parents | 1 to 4 months, extendable for equal periods up to a maximum of 2 years. |
| Personal matters | 2 calendar days or 4.5 days within a calendar year |
| To attend the exams or tests | 4 calendar days or 8.5 days within a calendar year |
The employer must insure the worker at the beginning of the employment relationship with the social security agency, Caixa Andorrana Seguretat Social (CASS), and make the declarations and pay the contributions, as follows:
| Benefit | Employer Contributions | Employee Contributions |
| General (disability, survivors, sickness, maternity, medical, and work injury benefits) | 7% | 3% |
| Retirement | 8.5% | 3.5% |
| Total | 15.5% | 6.5% |
Healthcare is funded by CASS and the employer’s general contribution is 7% and the employee’s contribution is 3%.
Residents of Andorra obtain health coverage by joining the Andorran Social Security Fund. This affiliation to the CASS is mandatory for all salaried persons.
The accident insurance is financed by the Social Security System, CASS and the employer contributes 7% towards the general category of CASS, whilst the employee contributes 3%.
An accident that occurs in the place where the salaried person performs remote work or telecommutes during the exercise of their professional activity is presumed to be a work accident.
The government bears the total cost of the unemployment benefits through its social assistance program.
To get the unemployment benefit, one must be involuntarily unemployed with at least 36 months of contributions in the last 60 months if aged 26 or older (18 months if aged 25 or younger), be registered as a job seeker at the public employment service for at least 45 days before the claim is made, be available and looking for work, and accept suitable employment.
The employer contributes 8.5% towards the retirement pension and the employee contributes 3.5%.
The grant of the economic benefit for retirement consists of a lifetime pension or a capital depending on the number of monthly contributions paid. It covers the situation of loss of income due to cessation of work or economic activity derived from age.
There are no other statutory benefits in Andorra.
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
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