Andorra Labor Law: Complete Guide

Published on October 4, 2025 and written by Cyril Jarnias

The Principality of Andorra, nestled between France and Spain, offers a unique legal framework in labor law. Although the country is not part of the European Union, its labor law system is largely inspired by European standards while maintaining its specificities. Let’s explore together the main aspects of Andorran labor law.

Employment Contracts Tailored to Local Needs

In Andorra, employment contracts are governed by Law 31/2018 on employment relationships. This legislation provides for several types of contracts:

– Permanent contract (CDI): This is the most common and stable form of employment. – Fixed-term contract (CDD): Limited in duration, it addresses specific company needs. – Seasonal contract: Widely used in the tourism sector, particularly for the ski season. – Training contract: Designed for young people entering the job market.

Andorran particularity: The probation period can last up to 6 months for managers and 3 months for other employees, which is relatively long compared to other European countries.

Social Protection: An Evolving System

The Andorran social security system, managed by the Caixa Andorrana de Seguretat Social (CASS), covers risks related to illness, maternity, workplace accidents, and old age. Contributions are shared between the employer (15.5%) and the employee (6.5%).

Note: Since 2025, the Andorran government has implemented new measures to strengthen worker protection, particularly regarding parental leave and continuing education.

Compensation: A Rising Minimum Wage

The interprofessional minimum wage (SMI) in Andorra is regularly reassessed. In 2025, it stands at 1,431.20 euros gross per month for a full-time job. This amount is higher than in some neighboring countries, reflecting the relatively high cost of living in the principality.

Good to know: Andorran employers are required to pay 13 months of salary per year, with the 13th month typically paid in December.

Competitive Salaries in Certain Sectors

Although the average salary in Andorra is around 2,500 euros gross per month, some sectors offer particularly attractive compensation:

– Banking and finance sector – Luxury industry and retail – High-end tourism – Liberal professions (lawyers, doctors, etc.)

Particularity: The wage gap between men and women is narrowing, thanks to active policies promoting professional equality.

Social Dialogue: Growing Unions

Although unionism is a relatively recent phenomenon in Andorra, trade unions play an increasingly important role in defending workers’ rights. The main Andorran unions are:

– Unió Sindical d’Andorra (USdA) – Sindicat Andorrà de Treballadors (SAT)

These organizations actively participate in collective bargaining and social dialogue with the government and employers.

Strengthened Workers’ Rights

Andorran workers enjoy numerous rights, including:

– 30 days of paid leave per year – Legal working hours set at 40 hours per week – Protections against unfair dismissal – Right to continuing education

Recent development: The telework law, adopted in 2024, now regulates this growing practice, guaranteeing teleworkers the same rights as on-site employees.

In conclusion, Andorran labor law provides a protective framework for employees while allowing some flexibility for employers. Recent legislative developments demonstrate the country’s commitment to modernizing its labor market and attracting international talent.