Foreign nationals generally require an immigration authorisation to live and work in Andorra. Residence and work authorisations are subject to immigration quotas, which are set by the Andorran Government and can vary by occupation and category.

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Foreign nationals who intend to reside and work in Andorra generally require a residence and work authorisation. Cross-border workers who live outside Andorra may apply for a frontier worker authorisation.

• Payroll Frequency: Salaries may be paid monthly, fortnightly, weekly or daily, but the payment period cannot exceed one month. Salary must generally be paid within three calendar days after the end of the agreed payment period. 
• Social Security: Employees are registered with the CASS, Andorra's social security system, from the beginning of employment, including during probation.
• Social Security Contributions:
  
  • Employer: 15.5%
  • Employee: 6.5%
  • Total: 22% 
• Minimum Wage: From 1 July 2026, the minimum wage is €9.05 per hour, equivalent to €1,568.67 per month for a standard 40-hour week. 
• Payroll Documentation: Employers must provide employees with a payslip detailing salary components and the employee's CASS contribution.

• Contract Types: Contracts may be indefinite, fixed-term, seasonal, intermittent, temporary replacement, short-term or session-based. Employment contracts must be made in writing. 
• Probation: A probationary period must be included in the written contract if applicable and is generally limited to two months. It may extend to three months where remuneration is at least three times the minimum wage, or six months where remuneration is at least five times the minimum wage.
• Working Hours: The standard working week is 40 hours of effective work. 
• Overtime: Additional working hours are subject to statutory limits and compensation requirements.
• Termination: For indefinite contracts, an employer may generally terminate without cause by giving 12 days' notice per year worked, or the proportional amount for shorter service, capped at 30 days, together with compensation equivalent to 25 days' salary per year worked, subject to statutory limits. Disciplinary dismissal may take place without notice where a qualifying serious breach exists. 
• Employee Resignation: Employees generally provide 10 working days' notice where they have worked for less than one year and 15 working days where they have worked for more than one year.

• Annual Leave: Employees are entitled to at least 30 calendar days of paid annual leave per year. By agreement or collective agreement, this can be converted to 22 working days. 
• Sick Leave: Employees may retain a statutory entitlement to salary during qualifying periods of illness, subject to the applicable conditions and social security provisions.
• Maternity Leave: Maternity leave is 20 weeks. Six weeks immediately following childbirth are compulsory, with the remaining period subject to the statutory rules governing its use. 
• Paternity Leave: From 2026, paternity leave is six weeks, forming part of a progressive increase to 20 weeks by 2030. Two weeks immediately following the mother's corresponding period are compulsory and must be taken jointly with the mother.
• Public Holidays: Employees are entitled to paid public holidays established under Andorran labour legislation and the applicable annual calendar. 
• Family Benefits: Andorra provides additional statutory leave and protections relating to family responsibilities, adoption and childcare.

• Tax Residency: Individuals are generally considered tax residents in Andorra if they spend more than 183 days in the country during the calendar year, or if their main centre of economic or personal interests is located in Andorra.
• Residents: Tax residents are generally subject to Andorran personal income tax on their worldwide income.
• Non-Residents: Non-residents are generally subject to tax on income considered to arise in Andorra. Employment income earned for work performed in Andorra may be subject to the non-resident income tax regime. 
• Tax Year: January 1 – December 31.
• Personal Income Tax: Andorra applies a relatively low personal income tax system, with a standard rate of 10%. A minimum exempt amount and reduced effective rate apply to certain levels of general income. 
• Tax Returns: Where required, individual income tax returns are generally filed between 1 April and 30 September of the following year. Employers are responsible for applying the applicable payroll withholding on employment income.

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