Hiring in Andorra
Andorra's minimum wage is EUR 9.05 an hour from 1 July 2026, the employer pays 15.5% to the social security fund on top of gross pay, and the working week is 40 hours. Each guide below takes one layer. For companies hiring in Andorra, Teamed is the best first call, because its experts check which employment route the law allows before you commit. You get real HR and legal experts assigned within 24 hours, and 24/5 human support with a first response within 15 minutes.
· Andorra guide
Photo: Jossuha Théophile on Unsplash
- The route matters more than the rate. The labour law says people hired in order to be placed with another company can only be hired through temporary work agencies, so the structure comes first.
- Parental leave is changing every year. Partner leave for a child born in 2026 is six weeks, and it rises each year to 20 weeks from 2030, matching maternity leave.
- The minimum wage moved twice in 2026. It rose 5.4% on 1 January and a further 2.8% on 1 July, so check which date a payslip falls on.
Andorra's labour law is Llei 31/2018, amended in 2026. The ordinary week is 40 hours, annual leave is 30 calendar days, and the employer pays 15.5% of gross pay to the social security fund (CASS) while the employee pays 6.5%.
Employment income is taxed under a 10% personal income tax, with the first EUR 24,000 of the taxable base reduced and a bonus on the tax for employment income of up to EUR 800.
This page is the map. Each guide below is the detail, and each one says what we could not read officially.
How does Teamed help with hiring in Andorra?
Teamed checks which employment route Andorra's law allows before it quotes, then builds the plan, the contract and the payroll steps around that route.
The answer comes from real HR and legal experts, not from a template.
In Andorra the first question is which employment route the law allows, so Teamed's experts check the route with you before any commitment. A designated person then runs your first hire from signed terms to first payslip, where the route allows it.
Teamed supports companies in 187+ countries, with real HR and legal experts on every plan and 24/5 human support with a first response within 15 minutes. Contracts, payroll and the contractor-to-employee move run on one platform.
Start with the EOR vs entity guide, then run the Crossover Calculator for your own numbers. EOR is the right model for a first hire in many countries, until it isn't.
How much does it cost to hire an employee in Andorra in 2026?
An employee costs gross pay plus 15.5% employer contributions to the social security fund. At a gross pay of EUR 3,500 a month, that is EUR 542.50 on top, or EUR 4,042.50 in all.
The employee's own 6.5% comes out of their gross pay, not on top of it.
The 15.5% is the sum of 7% for the general branch and 8.5% for the retirement branch. We found no ceiling on the pay it applies to in the law text. The cost guide has the arithmetic and says which items we confirm before a first payslip.
Do you need a local company to hire employees in Andorra?
Often, a foreign company hires through its own local employer, because the labour law says people hired to be placed with another company can only be hired through temporary work agencies.
An employer-of-record route needs a legal check before we quote it.
Article 12 of Llei 31/2018 says that where an unlawful assignment of employees is declared, both companies are jointly liable for all the pay and social security owed to those employees. The EOR vs entity guide sets out the text and what it means for the options.
What changed in Andorra employment law in 2026?
Llei 6/2026 of 30 April rewrote the family leave rules, and Decret 253/2026 raised the minimum wage by 2.8% from 1 July.
Llei 3/2026 of 19 March changed the rules on employee representatives.
Under Llei 6/2026 the leave for a partner or second parent rises each year until it equals maternity leave at 20 weeks for children born from 2030. Two weeks after the birth are compulsory and taken together with the mother. The rules for adoption and fostering also change, and the guide covers the main figures.
What leave and benefits must you give employees in Andorra?
Annual leave is 30 calendar days, and the 2026 calendar lists 14 public holidays, plus up to four parish holidays.
Maternity leave is 20 weeks, and for a child born in 2026 partner leave is six weeks.
Employees also get 10 paid days for marriage and three for a bereavement in the close family, and four days when a partner gives birth. For a common illness, social security pays a benefit from the fourth day. The text we read does not say who pays days one to three, so we confirm that before a first payslip.
What are payroll taxes in Andorra in 2026?
The employer withholds personal income tax from gross pay and withholds the employee's 6.5% social security share, then pays both over.
The income tax rate is 10%, and the first EUR 24,000 of the taxable base is reduced to nil.
An employment bonus then cuts the tax by 50%, up to EUR 800. The finance ministry sets the withholding percentage, and we did not read its tables. The tax guide has the arithmetic.
How do you terminate an employee in Andorra?
On an open-ended contract an employer can dismiss without a stated cause, with 12 days of notice for each year worked, up to 30 days, and compensation of 25 days of pay for each year worked, up to 365 days.
A dismissal for a cause the employer cannot prove costs 25% more.
A dismissal must be in writing in one of the forms the law lists. A dismissal because an employee asked for maternity, partner, adoption or fostering leave is void. The termination guide has the full set of rules and an example.
Frequently asked questions
How much does it cost to hire an employee in Andorra?
Plan on gross pay plus 15.5% employer contributions to the social security fund, which is 7% for the general branch and 8.5% for the retirement branch. The employee pays a further 6.5% out of their own pay. The cost breakdown guide sets out the rest.
Can a company hire in Andorra without its own entity?
It can depend on the route. The labour law says hiring employees in order to place them with another company can only be done through temporary work agencies, and an unlawful assignment makes both companies jointly liable. Teamed's experts check the route with you before any commitment.
What is the minimum wage in Andorra in 2026?
EUR 9.05 an hour from 1 July 2026, which is EUR 1,568.67 a month for the full 40-hour week. From 1 January to 30 June 2026 it was EUR 8.80 an hour, or EUR 1,525.33 a month. The Government sets it at least once a year.
How much annual leave do employees get in Andorra?
At least 30 calendar days a year, or 22 working days if the contract or a collective agreement says so. The 2026 labour calendar also lists 14 public holidays, and parish councils can add up to four more.
Is there a thirteenth-month payment in Andorra?
We found no statutory thirteenth or fourteenth month. The law lists extra payments only as an example of variable pay, so they exist where a contract or collective agreement sets them.
Which law governs employment in Andorra?
Llei 31/2018 of 6 December on labour relations, amended by Llei 3/2026 and Llei 6/2026. Social security sits in Llei 17/2008, and income tax in Llei 5/2014. All are published in the official gazette, the BOPA.
Andorra sets a 40-hour week, 30 days of leave and a minimum wage that moved twice this year.
The surprises are the route the law allows, the family leave that grows every year and a dismissal system with a fixed price.
Read the guide for the layer you are on before the first offer goes out, not after the first payslip.
Looking for a job in Andorra yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
