Andorra – Employment Terms and Conditions

What are the standard working hours in Andorra, and how is overtime regulated?

In Andorra, the standard working week is capped at 40 hours, with a daily maximum of 8 hours and a mandatory break of at least 30 minutes for every six consecutive hours worked. This aligns with the norms prevalent across much of mainland Europe, and the majority of full-time employment is arranged across a five-day week.

Workers are guaranteed a minimum of 12 uninterrupted hours between the close of one shift and the start of the next, alongside at least 48 consecutive hours of weekly rest — generally covering Sunday and, in many cases, Saturday afternoon or Monday morning. For any working day exceeding six hours, employees have the right to a break of no fewer than 30 minutes, which counts as working time. These rest entitlements are enshrined in law and cannot be set aside by mutual agreement between employer and worker.

Overtime for workers aged 18 or above is subject to strict limits: no more than 12 hours in a single week, 48 hours in a calendar month, or 426 hours across a full year. Such additional hours may only be worked under defined circumstances, including staff shortages, unusually high business demand, or situations of force majeure.

Overtime compensation follows a tiered structure: the first four additional hours in a day must be paid at 125% of the standard rate, hours five through eight at 150%, and any hours beyond that at 175%. Additional hours are also capped at two per day. Where no specific overtime policy has been established, every extra hour worked must be remunerated at a minimum of 125% of the employee’s regular wage.

Andorran employers are legally required to keep precise records of each employee’s working time, enabling them to demonstrate compliance with limits on hours, overtime thresholds, and rest period obligations. Sector-specific rules — particularly relevant in tourism and retail, which dominate Andorra’s economy — may be further shaped by the terms of applicable collective agreements.

What employment rights and benefits are workers entitled to in Andorra?

Under Law 31/2018 of December 2018, the rights and duties of both parties to an employment contract are treated as equivalent. Foreign nationals who are lawfully employed in Andorra are afforded the same statutory protections as local workers, provided they hold a valid work permit and residency authorisation.

Upon completing one year of continuous employment, workers become entitled to a minimum of 30 calendar days of paid annual leave. Those who have not yet completed a full year accrue leave on a pro-rata basis, at two and a half days per month worked. By means of a company-wide arrangement, a collective bargaining agreement, or an individual agreement between the parties, the entitlement of 30 calendar days per year may be converted to 22 working days per year.

Andorran employees are entitled to up to 12 months of sick leave, extendable in six-month increments to a maximum of three years. CASS funds sick pay at 53% of salary during the first 30 days, rising to 66% for days 31 through 540, and settling at 60% thereafter. A medical certificate from a registered doctor is required in order to access sick leave benefits.

Female employees are entitled to 16 weeks of fully paid maternity leave, extended to 18 weeks where medical complications arise or in the case of multiple births. Benefits are calculated at 100% of average daily earnings, based on the preceding 12 months within the 24-month period before leave commences.

Fathers are entitled to up to 14 days of paid paternity leave within the first six months following the birth of a child. The mother may also elect to transfer a portion of her leave entitlement to the other parent once she has used the first six compulsory weeks herself.

Employees are entitled to formal notice of dismissal. Notice accrues at one day per month of service with the employer, up to a ceiling of 90 days. Andorra recognises a number of public holidays annually, and workers required to work on these days are generally entitled to compensatory rest or additional remuneration as specified in their contract or applicable collective agreement. The Andorran Government’s official website publishes the current schedule of national public holidays.

What are the rules around minimum wage and pay in Andorra?

Andorra maintains a statutory minimum wage that is subject to annual review and is typically revised upward each year. All employers are legally obliged to pay employees no less than this floor rate for standard working hours, and the minimum applies to all workers aged 15 and above, irrespective of nationality or the nature of their employment contract.

With effect from 1 January 2025, the statutory minimum wage stands at €1,447.33 per month, representing a 5.2% increase on the prior year, equivalent to roughly €8.35 per hour. By way of comparison, the minimum wage rose from €7.42 to €7.94 per hour and from €1,286.13 to €1,376.27 per month in January 2024. This pattern of consistent annual increases reflects the government’s approach of calibrating the minimum wage to movements in inflation and the consumer price index.

Following a failure by employers and trade unions to agree on wage rises, the Andorran government enacted legislation in January 2024 to regulate pay increases — for wages between the minimum and the average — in accordance with CPI movements, with the aim of preserving workers’ purchasing power.

Andorran remuneration encompasses different components. The base salary corresponds to ordinary legal working hours and may not fall below the minimum interprofessional wage. Variable elements include supplementary payments such as overtime compensation, commissions, profit-sharing arrangements, transport allowances, productivity bonuses, seniority increments, and night shift premiums.

The minimum wage currently applies uniformly across sectors and contract types, though collective agreements in industries such as tourism or retail may establish higher sector-specific floors. For the most up-to-date figures, consult the Andorran Government website or the Department of Labour Relations, as the rate is reviewed annually.

How does the employment contract system work in Andorra?

All employment contracts in Andorra must be drawn up in writing and prepared in the country’s official language, Catalan. Financial terms — that is, salary and any monetary provisions — must be expressed in euros rather than any other currency. Contracts are also required to set out the job title and duties, working hours, place of work, remuneration, and the length of any probationary period.

The principal contract types available in Andorra are:

• Indefinite (permanent) contract: The most widely used contract type in Andorra, and the standard for foreign nationals seeking to establish residency. It must be in written form and carries no specified end date.
• Fixed-term contract: Must be issued in writing with explicit start and end dates. Such contracts are restricted to a maximum duration of two years, after which the employment relationship automatically converts to an indefinite arrangement.
• Seasonal contract: A specific form used widely in winter and summer tourism cycles. It cannot under any circumstances convert into a permanent contract.

Probationary periods are defined by law. The standard probation period may not exceed one month, though exceptions exist where the agreed remuneration surpasses three or five times the minimum wage, permitting probation periods of up to three or six months respectively. In certain cases, contracts allow a trial period of up to two months, during which either party may terminate the arrangement at any time without the requirement for written notice.

When an employer terminates a worker on an indefinite contract, advance notice of 12 days per year of service must be given. At that point, the employer must settle all outstanding holiday pay, overtime, and any applicable financial compensation. Employees who have worked continuously for five years or more may be entitled to a gratuity calculated as their final salary multiplied by 15/26 multiplied by their total years of service.

The following steps outline the typical process for establishing a compliant employment relationship in Andorra:

1. Obtain the necessary work permit and residency authorisation from the Andorran immigration authority before commencing work.
2. Draft a written employment contract in Catalan, specifying role, salary (in euros), hours, probationary period, and place of work.
3. Register the employee with the Caixa Andorrana de Seguretat Social (CASS) from the first day of employment.
4. Ensure monthly payroll deductions for CASS contributions (6.5% employee share) and IRPF income tax are correctly withheld and remitted to the relevant authorities.
5. Maintain accurate records of working hours, overtime, and leave taken throughout the employment relationship.
6. In the event of termination, follow the legally prescribed notice periods and settlement calculation procedures and provide all relevant documentation to the worker.

How does the workplace pension system work in Andorra?

The Caixa Andorrana de Seguretat Social — universally known as the CASS — forms the backbone of social protection in the Principality. Founded in 1966 and comprehensively updated by Law 17/2008 on Social Security, the CASS operates on a contributory and solidarity-based model that provides healthcare, employment, and retirement coverage for salaried workers, the self-employed, and pensioners alike.

For employees, CASS collects a total of 22% of gross monthly salary, apportioned between worker and employer: the employee contributes 6.5% (3% to the general branch and 3.5% to the retirement branch), while the employer covers the remaining 15.5% (7% to the general branch and 8.5% to retirement). The employer bears responsibility for calculating and remitting the full combined sum to CASS each month.

In contrast to the United Kingdom’s auto-enrolment system, which layers private workplace pensions on top of a state pension, or Australia’s superannuation model where employer contributions flow into privately managed funds, Andorra operates a single integrated state-administered scheme. All pension saving is channelled through CASS, which uses a points-based accumulation model: contributions throughout a worker’s career translate into pension points, which are then converted into monthly pension payments upon retirement.

With a minimum of 15 years of contributions before the retirement age of 65, the points accumulated determine the monthly pension amount. Under current rates, a single pension point costs approximately €21.62 to acquire, and each point accrued is worth approximately €2.25 per month at retirement. The greater the number of contribution years and the higher the salary on which contributions are based, the larger the resulting pension.

Full details on CASS contribution rates, point calculations, and available benefits can be found on the CASS official website. Both contribution rates and point values are subject to periodic revision, so it is advisable to verify current figures directly with CASS.

What types of pension arrangements are available to expats in Andorra?

Anyone carrying out a professional activity in Andorra is required to be affiliated with the CASS. This obligation covers employees — enrolled through their employer — and self-employed individuals registered in the Economic Activities Register. The requirement applies regardless of nationality: all legally working residents contribute to and draw benefits from the same state system.

Andorra has bilateral social security agreements with Spain (concluded in 1982) and France (concluded in 2000). These treaties eliminate the risk of double contributions and permit the aggregation of contribution periods when assessing eligibility for pension or disability benefits. This provision is of particular relevance to expats who have previously worked in Spain or France, as those earlier contribution periods may count towards qualifying for a CASS pension.

For expats arriving in Andorra mid-career from countries not covered by a bilateral agreement, pension contributions made elsewhere will not automatically be recognised within the CASS system. It is therefore essential to assess realistically how many years of CASS contributions you are likely to accumulate before retirement, and to plan accordingly — for example, by preserving or supplementing a private or occupational pension from a previous country of residence.

If you retire outside Andorra, entitlement to a monthly CASS pension requires a minimum of 15 years of employment contributions in Andorra. Those who fall short of this threshold but have contributed for between 5 and 15 years will instead receive a lump sum, the value of which reflects the pension points accrued up to the point of withdrawal.

Passive residents — those not engaged in employment in Andorra — do not contribute to CASS. They are instead required under immigration law to hold a private health and disability insurance policy and, as part of the passive residency requirements, to be enrolled in a pension scheme with an Andorran entity — although this rule differs for those aged over 65.

Enquiries regarding eligibility, bilateral agreement entitlements, and individual contribution records can all be directed to the CASS online portal. Given the complexity of cross-border pension planning, expats are strongly encouraged to seek advice from a qualified financial adviser with expertise in both Andorran and their home country’s pension systems.

What is the retirement age in Andorra, and how does the pension eligibility system work?

Under rules in place since 2014, retirement benefits become available after 15 years of contributions at age 65. Early retirement is accessible from age 61 for those with 40 years of contributions, while a capitalisation option — providing a lump sum rather than a monthly pension — is available to those with between 5 and 15 years of contributions. Current legislation makes no distinction in retirement age between men and women.

Provided you have made at least 15 years of contributions prior to turning 65, your total accumulated pension points will determine your monthly retirement income. While it is possible to continue working beyond 65, contributions after that age are directed solely to the medical (general) branch — they do not generate additional pension points or increase your retirement benefit.

As of the end of 2025, CASS was paying an average monthly retirement pension of €1,222 to 9,304 beneficiaries who had contributed for more than 20 years, of whom 7,861 were resident in Andorra and 1,443 lived abroad. Individuals with shorter contribution records of between 0 and 20 years receive considerably less — averaging €283 per month — and a significant share of this group receives payment from abroad under international agreements.

These figures illustrate clearly how the duration and level of contributions shape retirement outcomes. Andorra has not publicly confirmed any plans to increase the retirement age, though demographic pressures remain a recognised concern. The dependency ratio — comparing insured workers aged 16 to 64 with those over 65 — edged down slightly to 3.14 contributors per retiree in 2025, from 3.21 in 2024, a trend that may prompt future legislative review. The CASS website is the authoritative source for the latest information on retirement age rules and any forthcoming changes.

What taxes and social contributions are deducted from wages in Andorra?

Andorra enjoys a well-established reputation across Europe for its low-tax environment, and this advantage extends directly to employees. Two principal deductions are applied to wages: social security contributions through CASS and personal income tax under the IRPF (Impost sobre la Renda de les Persones Físiques).

For salaried employees, the worker’s portion of CASS contributions amounts to 6.5% of gross monthly salary — split as 3% to the general branch covering healthcare, maternity, and sick leave, and 3.5% to the retirement branch. The employer contributes the remaining 15.5%. Both shares are calculated and submitted monthly by the employer directly to CASS.

Andorra’s personal income tax structure is notably straightforward: the first €24,000 of annual income attracts no tax at all, a 5% rate applies on earnings between €24,001 and €40,000, and a 10% rate is charged on income exceeding €40,000. This makes Andorra’s income tax among the lowest in Europe — a striking contrast to the steeply progressive systems operating in neighbouring France and Spain, where top marginal rates surpass 40%.

Employers are obliged to deduct IRPF from employees’ pay at source. Under Andorran law, all economically active individuals are subject to CASS contributions totalling 22% of gross monthly salary, shared between employer and employee as described above.

Tax residents of the Principality are liable for IRPF on their worldwide income, including earnings from sources outside Andorra. The income tax regime is widely regarded as simple, transparent, and highly competitive by regional standards. Expats should note that tax residency rules and any double tax treaties applicable to their home country may have a material bearing on their overall tax position. The Andorran Ministry of Finance (Ministeri de Finances) is the official authority for personal income tax guidance.

What are the rules around trade unions and collective bargaining in Andorra?

Trade union activity exists within Andorra but operates in a markedly different fashion from the deeply entrenched union cultures found in countries such as Germany or France. Andorra’s economy is oriented primarily around tourism and commerce — sectors that inevitably shape both the character of employment legislation and the dynamics of collective negotiation.

When employers and trade unions were unable to agree on wage increases in early 2024, the Andorran government intervened by legislating for CPI-linked pay rises. This episode demonstrates that collective bargaining does occur in Andorra, yet the state continues to play a significant role in establishing floors — particularly in relation to the minimum wage — when the social partners reach an impasse.

Collective bargaining agreements (convenis col·lectius) can improve upon statutory minimums in a range of areas, including annual leave entitlements (for instance, substituting calendar days for working days), overtime compensation arrangements, bonus structures, and working pattern flexibilities. Where a collective agreement is in force within a sector, its provisions apply to all workers in that sector regardless of individual contract terms. Foreign nationals employed legally in Andorra are fully entitled to join a trade union and benefit from the protections afforded by applicable collective agreements.

Compliance with both statutory obligations and collective agreement terms is actively monitored by the Andorran Labour Inspection Department, which oversees employers across all sectors. Workers who consider that the terms of a collective agreement are not being observed by their employer may raise a formal complaint with this body. For information on collective agreements applicable to your particular sector, contact the Andorran Ministry of Social Affairs or the relevant departament de relacions laborals.

Are there any particular employment protections or challenges that expats should be aware of in Andorra?

All employment contracts in Andorra must be drafted in the official language, Catalan. Although many employers — especially in retail, tourism, and financial services — conduct daily operations in Spanish or French, the legally binding contract document will be in Catalan. Expats are strongly encouraged to engage a bilingual legal adviser to review any contract before signing, so that they fully understand their rights and responsibilities.

Employers face stringent obligations when recruiting foreign workers, including demonstrating a genuine need to hire from abroad and first advertising the vacancy within the local labour market. The government imposes annual immigration quotas — set at 100 permits for work authorisation without residence and 50 for self-employed individuals as of 2025. The limited availability of work permits for new arrivals can constrain job mobility once workers are established in the country.

Work and permanent residence permits are initially issued for one year and may be renewed up to three times at two-year intervals. Once those renewal cycles are exhausted, further renewals are granted in ten-year terms. Expats whose employment circumstances change — for example, moving between employers or transitioning from employed to self-employed status — should be aware that a fresh permit application may be required, and that such changes can affect the continuity of CASS contributions and associated entitlements.

Recognition of overseas professional qualifications in Andorra is not governed by any single overarching framework comparable to the EU’s mutual recognition directives. Regulated professions — including medicine, law, and architecture — typically require individual assessment by the relevant Andorran professional body or government ministry before qualifications obtained abroad are formally accepted. Expats in skilled or regulated occupations should begin this process well before their intended start date.

Salaries tend to be most competitive in technically demanding roles and in sectors such as finance, tourism, banking, and retail, particularly in and around the capital Andorra la Vella. Expats accustomed to stronger collective labour frameworks — such as Germany’s codetermination rights or France’s works council structures — may find Andorra’s trade union landscape comparatively limited. Nevertheless, the overall package of low income tax, modest employee social contributions, and clear statutory protections remains genuinely competitive.

Frequently asked questions

Are my foreign professional qualifications automatically recognised in Andorra?

No. In contrast to the position within the European Union, Andorra has no automatic mutual recognition framework for overseas qualifications. Regulated professions — encompassing fields such as medicine, law, engineering, and education — require individual evaluation and approval by the relevant Andorran professional body or ministry. Roles that are not formally regulated generally do not require official recognition, though employers will form their own view of foreign credentials. If your position requires formal recognition, begin the process as early as possible.

Can I access my CASS pension contributions if I leave Andorra before retirement?

If you depart Andorra before retirement age and your CASS contribution record is shorter than 15 years, you will not be entitled to a monthly pension. Instead, you will receive a lump sum whose value reflects the pension points accumulated up to the date of your withdrawal. If you have contributed for 15 years or more, you retain the right to a monthly CASS pension from age 65, even if you are living in another country at that point. Contact CASS directly to clarify your individual entitlements.

What happens to my employment rights if my visa or residency status changes?

Your entitlement to statutory employment protections under Andorran law is contingent on holding valid and active work authorisation. Should your residency or work permit expire or change in type — for instance, if you move from an employer-sponsored permit to a self-employed permit — your legal employment status is altered accordingly. It is essential to maintain continuity of your permit and to inform both your employer and CASS of any changes. Breaks in CASS contributions can have consequences for sick leave eligibility and the accrual of pension points.

Does Andorra have an agreement with my country to avoid paying social security in two countries at once?

Andorra has bilateral social security agreements with Spain and France that prevent double contributions and permit the aggregation of contribution periods for pension purposes. No equivalent agreement exists with the majority of other countries. If your home country is neither Spain nor France, specialist advice is advisable to assess whether you face a risk of double contributions, particularly if you are a cross-border worker or retain financial ties to your former country of residence.

Is income tax in Andorra deducted at source by my employer, or do I need to file a tax return?

Andorran employers are required to withhold personal income tax (IRPF) from employees’ salaries at source. However, depending on your individual circumstances — for example, if you have additional income streams, investment income, or earnings from outside Andorra — you may still be required to submit an annual tax declaration. The Andorran Ministry of Finance publishes official guidance, and a local tax adviser can help you determine what obligations apply specifically to you.

Are there any sectors where expats are particularly common or where conditions differ?

Finance, tourism, banking, and retail — particularly in and around Andorra la Vella — tend to offer the highest salaries and attract a notable share of foreign workers. Seasonal work in tourism is especially prevalent and is governed by seasonal contracts that carry distinct rules on renewal and termination compared with permanent arrangements. Always verify whether a sector-specific collective agreement applies in your workplace, as this may provide entitlements that go beyond the statutory minimums.

What is the process for claiming sick pay in Andorra?

CASS funds sick pay at 53% of your salary for the first 30 days of absence, increasing to 66% for days 31 through 540, and settling at 60% for any period beyond that. A medical certificate from a CASS-registered doctor is required to support a sick leave claim. You must inform your employer without delay and submit the certificate accordingly. Some employers elect to supplement CASS sick pay — particularly in the early days of illness — so it is worth reviewing your contract or applicable collective agreement for any such provision.

Can a fixed-term contract be renewed indefinitely in Andorra?

Fixed-term contracts must contain a clearly defined start and end date and are subject to a maximum duration of two years. If the employment continues beyond this limit, the contract converts automatically to an indefinite arrangement. Seasonal contracts are a notable exception and can never convert to permanent contracts under any circumstances. If you have reason to believe that your employer is using successive fixed-term contracts to circumvent your right to indefinite status, you are entitled to seek advice from the Andorran Labour Inspection Department.