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Payroll and Benefits Guide Andorra

Last updated: Mar 03, 2026

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
1 January - 31 December
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Contribution

 

Employer Payroll Contributions
15.50% Social Security
15.50% Total Employment Cost

 

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 1,447.33 EUR per month and 8.35 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

  • Maximum Ordinary Hours: The standard work limit is 40 hours per week, typically distributed over five days.
  • Daily Maximum: No employee can work more than 12 hours in a single day (including overtime).
  • Consent: Overtime work is generally voluntary and must be mutually agreed upon between the employer and the employee (over 18 years of age).
  • Overtime Limits: Overtime is strictly capped, in principle, at:
    • 2 hours per day
    • 15 hours per week
    • 50 hours per month
    • A maximum of 426 hours per year (though some sources cite a lower limit).

Mandatory Overtime Pay Rates

Overtime compensation follows a mandatory, tiered system based on the total overtime hours worked within the week. These rates are minimum surcharges on the employee’s base salary.

Overtime Hours Worked (Beyond 40/week) Minimum Compensation Rate (Supplement) Total Pay Rate
First 4 Hours of weekly overtime +25% of the regular hourly wage. 125%
Following 4 Hours (5th to 8th hour) +50% of the regular hourly wage. 150%
Beyond the 8th Hour (9th hour and above) +75% of the regular hourly wage. 175%

Note on Collective Agreements: If a Collective Bargaining Agreement (CBA) or specific company agreement is in place, it may stipulate an overall minimum 40% surcharge for general overtime if no tiered system is specified.
This structure is a common but not universal collective agreement standard.

Work on Holidays and Night Work

  • Public Holidays: If an employee is required to work on a national or municipal holiday, they are entitled to either double pay or an extra day off.
    • On the four mandatory rest days (January 1, March 14, September 8, and December 25), payment must be tripled or the workers must be given two extra rest days.
  • Night Work Premium: Work performed during the night shift (typically defined as 10:00 PM to 6:00 AM) must be compensated with a minimum increase of 20% over the standard minimum wage.

Leave

Annual Leave (vacation)

Employees are entitled to a minimum of 22 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.

PTO carryover

Under Andorran labour law, employees are entitled to a minimum annual paid leave (typically 30 calendar days per year). Annual leave must be taken within the calendar year it is earned and, in exceptional cases, can be carried over only into the first quarter of the following year (e.g., until March 31) if it wasn’t used in the original year. Leave not taken within these periods generally cannot be carried over further. Upon termination of employment, any unused accrued leave must be paid out.

Public Holidays

Date Day Holiday Notes
1 Jan 2026 Thursday New Year’s Day Standard holiday
6 Jan 2026 Tuesday Epiphany (Kings) Standard holiday
16 Feb 2026 Monday Carnival Standard holiday
14 Mar 2026 Saturday Constitution Day Standard holiday
3 Apr 2026 Friday Good Friday Standard holiday
6 Apr 2026 Monday Easter Monday Standard holiday
1 May 2026 Friday Labour Day / May Day Standard holiday
25 May 2026 Monday Whit Monday (Pentecost Monday) Standard holiday
15 Aug 2026 Saturday Assumption Day Standard holiday
8 Sep 2026 Tuesday National Day (Our Lady of Meritxell) Standard holiday
1 Nov 2026 Sunday All Saints’ Day Standard holiday
8 Dec 2026 Tuesday Immaculate Conception Standard holiday
25 Dec 2026 Friday Christmas Day Standard holiday
26 Dec 2026 Saturday St. Stephen’s Day (Second Day of Christmas) Standard holiday

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.

Salary payment interval / date Final payment on termination Bank account payment requirement
Salaries must be paid at “regular intervals, typically monthly” and the pay period/frequency must be defined in the employment contract. There is no publicly-clearly-stated statutory deadline (e.g., “within X days”) for payment of final remuneration in all cases. Severance is required when dismissed without cause: for example, around 15 days’ salary per year of service in many sources. No definitive statute confirming that payment must be by bank transfer in all cases.

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.

Immigration

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 2026 Thursday New Year’s Day Standard holiday
6 Jan 2026 Tuesday Epiphany (Kings) Standard holiday
16 Feb 2026 Monday Carnival Standard holiday
14 Mar 2026 Saturday Constitution Day Standard holiday
3 Apr 2026 Friday Good Friday Standard holiday
6 Apr 2026 Monday Easter Monday Standard holiday
1 May 2026 Friday Labour Day / May Day Standard holiday
25 May 2026 Monday Whit Monday (Pentecost Monday) Standard holiday
15 Aug 2026 Saturday Assumption Day Standard holiday
8 Sep 2026 Tuesday National Day (Our Lady of Meritxell) Standard holiday
1 Nov 2026 Sunday All Saints’ Day Standard holiday
8 Dec 2026 Tuesday Immaculate Conception Standard holiday
25 Dec 2026 Friday Christmas Day Standard holiday
26 Dec 2026 Saturday St. Stephen’s Day (Second Day of Christmas) Standard holiday