Employee Benefits in Andorra

Bonuses and additional payments

Unlike in many parts of Europe, in Andorra, the payment of a 13th-month salary or annual bonus is not mandatory. Bonuses are granted at the employer’s discretion and are often performance-based. These bonuses are typically outlined in employment contracts or company policies and are disbursed according to the terms specified therein.

Annual leave

Employees in Andorra are entitled to paid vacation leave after completing one year of service. The statutory entitlement is 30 calendar days per year. This leave is fully paid and can be taken throughout the leave year, as agreed between employer and employee. 

Additional leave may be offered as part of an employment contract, though it is not required by law. Many employers offer enhanced leave policies to stay competitive and improve retention. 

Unused statutory leave must be taken within the prescribed period after it is earned, depending on the employer’s policy or collective agreements. Payment in lieu of unused leave is only permitted upon termination of employment.

Sick leave

In Andorra, employees are entitled to 12 months of sick leave, which may be extended in six-month increments for up to three years. Employees must provide their employer with the initial medical certificate within 48 hours. The salary during sick leave is based on the average earnings of the employee 24 months prior to the sick leave.

Parental leave

Employers must provide 20 weeks of paid maternity leave, with an additional two weeks for multiple births or adoptions. Pregnant employees are eligible for full pay during maternity leave, funded by social security. Written notice and medical documentation are required to be submitted to the employer confirming the pregnancy and expected delivery date.

Additional benefits

Free public healthcare is available to all Andorran citizens, but many employees still rely on private healthcare providers for faster service. Employers cover a significant portion of mandatory benefits, but we can consult with you about optional supplemental coverage options, such as private health insurance or additional pension contributions. As your employer of record in Andorra, we may be able to offer cost-effective access to group health and wellness programs.