What are the payroll costs in Andorra?

Social security contributions to CASS total 22% of gross salary: 15.5% paid by the employer and 6.5% withheld from the employee. Personal income tax tops out at 10%, so take-home pay is high by European standards.

Can a foreign national start work in Andorra right away?

No. Non-residents need a work and residence authorization before they start, and the government sets annual quotas for these permits. Build several weeks into your hiring plan and confirm quota availability early.

How does Good Balance Global hire employees in Andorra?

As your Employer of Record (EOR), we act as the legal employer in Andorra. We register the employee with CASS, run payroll in euros, and withhold contributions and income tax each month. You manage the role and the day-to-day work.

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Payroll and benefits guide

Andorra

CapitalAndorra la Vella

Fiscal Year1 January - 31 December

Date Formatdd/mm/yyyy

CurrencyEUR (Euro)

Payroll FrequencyMonthly

Employer Taxes15.5%

Employee Costs6.5%

Overview

Languages: Catalan
Income tax: 0% – 10%
VAT: 4.5%; Reduced rates: 2.5%, 1%, 0%. Andorra levies a general indirect tax (IGI) instead of VAT. A special 9.5% rate applies to banking and financial services.

Contributions

Employer

CASS general branch (health and sickness)

8.5%

CASS retirement branch

15.5%

Total employer cost

Employee

CASS general branch (health and sickness)

3.5%

CASS retirement branch

6.5%

Total employee cost

Minimum Wage & Working Hours

Minimum wage: EUR 1,568.67 / Monthly; Effective 1 July 2026 under Decree 253/2026; EUR 1,525.33 applied from January to June 2026
Standard working hours: 40 hours per week

Leave

Annual leave30 calendar daysPaid by the employer
Sick leaveUp to 12 months, extendableCASS pays a daily allowance after a 3-day waiting period: 53% of average pay for the first 30 days, then 66%
Maternity leave20 weeksPaid by CASS at 100% of average salary; from week 7 the leave can be shared with the other parent
Paternity leave28 consecutive daysPaid by CASS at 100% of salary

Leave type	Duration	Notes
Annual leave	30 calendar days	Paid by the employer
Sick leave	Up to 12 months, extendable	CASS pays a daily allowance after a 3-day waiting period: 53% of average pay for the first 30 days, then 66%
Maternity leave	20 weeks	Paid by CASS at 100% of average salary; from week 7 the leave can be shared with the other parent
Paternity leave	28 consecutive days	Paid by CASS at 100% of salary

Termination

13th salary: Not mandatory

Benefits

CASS health coverageMandatory
Public health and sickness coverage funded by employer and employee contributions
Private health insuranceCommon
Top-up cover for the share of medical costs CASS does not reimburse

Visas & Work Permits

Work and residence authorization
Requirements
Job offer from an employer registered in Andorra
Issued by the Immigration Department within annual quotas set by the government

FAQ

Sources

Last updated: November 1, 2026

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