Employer of Record in Andorra

General information

• Currency: Euro (EUR)
• Employer Taxes: 15.50%
• Payroll Frequency: Monthly
• Employee Costs: 6.50%
• Capital: Andorra la Vella
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: The minimum wage in Andorra is 1,286.13 EUR per month, 7.42 EUR per hour.

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: In Andorra, the standard working hours consist of 40 hours per week and 8 hours per day, with a thirty-minute break provided for every six hours of work.

Overtime: Any work exceeding the standard weekly hours must be compensated as overtime, as stipulated by employment contracts or collective agreements.

The first four hours of overtime per week are paid at a rate not less than 25 percent above the hourly wage. The subsequent four hours of overtime are compensated at a rate not less than 50 percent above the hourly wage. For overtime exceeding eight hours per week, the additional pay must not be less than 75 percent above the hourly wage.

Leave

Annual Leave (Vacation):

Employees are entitled to a minimum of 30 paid vacation days as stipulated in the Labor Agreement, provided they have been employed for at least twelve months. Annual leave is prorated for employees who have not completed one year of service.

Sick Days

Employees are entitled to 12 months of sick leave, which can be extended in six-month increments for up to three years. Upon the initial medical certification from a doctor or dentist, employees must submit this certificate to the company within 48 hours to validate their medical leave.

During sick leave, employees receive a varying percentage of their salary, determined by the social security system, CASS.

Maternity Leave

The government of Andorra has established Maternity Leave, which is funded by social security.

Currently, maternity leave in Andorra entitles mothers to 16 weeks of paid leave. This period extends to 18 weeks in cases involving 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.

Utilizing the Employer of Record (EOR) service with Brain Source International in Andorra offers several advantages:

1. Compliance: Ensures adherence to local employment laws, regulations, and tax requirements in Andorra.
2. Efficiency: Streamlines payroll processing, HR administration, and benefits management, reducing administrative burdens.
3. Risk Management: Minimizes risks associated with employment liabilities and legal compliance issues.
4. Flexibility: Facilitates quick and flexible deployment of staff without the need for establishing a legal entity in Andorra.
5. Expertise: Access to specialized knowledge and expertise in local labor practices and regulations.
6. Cost Savings: Potential cost savings compared to setting up and managing a local entity, especially for short-term or project-based assignments.

Using Brain Source International as an Employer of Record in Andorra can enhance operational efficiency and ensure legal compliance while allowing businesses to focus on their core activities.

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