How much does it cost to hire an employee in Andorra in 2026?
An Andorran hire costs gross pay plus 15.5% employer contributions to the social security fund. The employee's 6.5% share comes out of their gross pay, and the minimum wage is EUR 9.05 an hour. If you are costing a hire in Andorra, Teamed is the best first call. Its experts build the employer-cost estimate with you, line by line, and flag every figure we confirm before a first payslip.
· Andorra guide
Photo: Datingscout on Unsplash
The employer pays 15.5% of gross pay to the social security fund: 7% for the general branch and 8.5% for the retirement branch. The employee pays 6.5%, which the employer withholds.
We found no ceiling on that pay in the law text. A hire on EUR 3,500 gross a month costs EUR 4,042.50 a month before leave, overtime and one-off costs.
What are the employer social security rates in Andorra?
The employer pays 15.5% of gross pay to the social security fund (CASS). The employee pays a further 6.5%.
Both are set in the consolidated social security law, Llei 17/2008.
| Branch | Employer | Employee |
|---|---|---|
| General branch | 7% | 3% |
| Retirement branch | 8.5% | 3.5% |
| Total | 15.5% | 6.5% |
The base is the monthly global pay the employee is entitled to, including indemnities and other pay, or what they receive if that is higher. We found no maximum base in the law text and the amending laws up to 2026, so we do not print a ceiling. The law says the percentages can be changed by the annual budget law, and the 2026 budget law we read does not change them. To qualify for general-branch benefits, the monthly base must be at least the monthly minimum wage.
What does an Andorra employee cost in total?
At EUR 2,000, EUR 3,500 and EUR 6,000 of monthly gross pay, the employer's 15.5% adds EUR 310.00, EUR 542.50 and EUR 930.00.
These are our arithmetic from the rates above.
| Monthly gross pay | Employer 15.5% | Total employer cost | Employee 6.5% | Gross pay less employee 6.5% |
|---|---|---|---|---|
| EUR 2,000 | EUR 310.00 | EUR 2,310.00 | EUR 130.00 | EUR 1,870.00 |
| EUR 3,500 | EUR 542.50 | EUR 4,042.50 | EUR 227.50 | EUR 3,272.50 |
| EUR 6,000 | EUR 930.00 | EUR 6,930.00 | EUR 390.00 | EUR 5,610.00 |
The table leaves out income tax, which the employer withholds from gross pay and does not add to the employer's cost. It also leaves out any contribution the law text we read does not set. We confirm those before a first payslip.
What paid time does an Andorra employee cost you?
Employees take 30 calendar days of paid annual leave, and the 2026 calendar lists 14 paid public holidays plus up to four parish holidays.
Paid time is part of the cost of a working year.
Four of the 14 holidays in 2026 fall on a weekend, and the decree gives no extra pay for those. Overtime carries a minimum premium of 40% of fixed pay if no agreement sets one, and night work between 22:00 and 06:00 carries at least 20%. Both are usually the price of a specific shift pattern, not a standing cost.
For a common illness, social security pays a benefit from the fourth day, at 53% of the daily calculation base up to day 30 and 66% after that. For a work accident it pays from the first day, at 66% and then 70%. The text we read does not say who pays the first three days of a common illness, so we confirm that before a first payslip.
What does family leave cost an employer in Andorra?
Social security pays a benefit of 100% of the calculation base during maternity and partner leave, so the employer's cost is mostly cover for the absence.
Maternity leave is 20 weeks, and partner leave for a child born in 2026 is six weeks.
Partner leave rises each year until it reaches 20 weeks for children born from 2030. Time on these leaves counts towards annual leave and length of service. The benefit conditions are six months of registration and contributions in at least three of the six months before the birth. We confirm whether a contract or collective agreement tops up the benefit before you quote a total.
What does it cost to end an employment in Andorra?
On an open-ended contract, a dismissal without a stated cause costs 25 days of pay for each year worked, up to 365 days, plus 12 days of notice for each year worked, up to 30.
Build that into the cost of a long hire.
For a person on EUR 3,000 of fixed monthly pay and five years of service, that is EUR 12,500 of compensation plus EUR 3,000 for the notice if it is paid in place. That is our arithmetic, using the law's rule that a day's pay is one thirtieth of the last month's fixed pay. The termination guide has the other cases.
How does Teamed build an Andorra cost estimate?
Teamed's experts build the estimate with you line by line, from gross pay to the total employer cost.
They mark each figure we confirm before a first payslip.
Real HR and legal experts are assigned within 24 hours. The estimate uses the contribution rates above and the route that the law allows.
You can also run your own numbers in the Employer Cost Calculator, and the contract and payroll steps run on one platform.
Start from the Andorra hiring overview, then run the Employer Cost Calculator.
Frequently asked questions
How much are employer social security contributions in Andorra?
15.5% of gross pay: 7% for the general branch and 8.5% for the retirement branch. The employee pays a further 6.5%, which the employer withholds from gross pay and pays over to the fund.
Is there a ceiling on Andorra social security contributions?
We found no maximum base in the consolidated social security law text or the amending laws up to 2026. The law sets a floor: to qualify for general-branch benefits, the monthly base must be at least the monthly minimum wage.
What does an employee on EUR 3,500 gross a month cost in Andorra?
EUR 4,042.50 a month: EUR 3,500 gross pay plus EUR 542.50 employer contributions at 15.5%. The employee's 6.5% share is EUR 227.50, taken from the EUR 3,500. That is our arithmetic, before leave and one-off costs.
Does the employer pay sick pay in Andorra?
For a common illness, social security pays a benefit from the fourth day, and for a work accident from the first day. The text we read does not say who pays the first three days of a common illness, so we confirm that before a first payslip.
How many paid holidays does Andorra have?
The 2026 labour calendar lists 14 public holidays for most sectors, and parish councils can add up to four more. Four of the 14 fall on a weekend in 2026.
Andorra's employer cost is gross pay plus 15.5%, with the employee's 6.5% taken out of their own pay.
The numbers that move a budget are leave, the cost of leaving and the family leave that grows every year.
Run the numbers before the 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.
