PEO in Andorra

Hire Globally, Pay Locally, Expand Effortlessly

INS Global is a trusted provider of international Human Resources services, supporting companies that want to hire, manage, and pay employees across more than 160 jurisdictions worldwide. Through a Professional Employer Organisation (PEO) solution in Andorra, companies can begin operations, onboard employees, and remain compliant with local labour and tax regulations while avoiding the complexity of building a full internal HR structure.

A PEO in Andorra offers a practical and compliant way to manage employees in a highly regulated labour market. By outsourcing key HR and payroll functions, companies can focus on business operations while ensuring employment administration aligns with national requirements, including social security registration through the Andorran CASS system and correct payroll reporting.

INS Global’s PEO services in Andorra provide access to experienced local professionals who manage employment administration, payroll processing, and compliance monitoring. This model is particularly effective for companies entering the Andorran market for the first time or expanding small or remote teams.

A Professional Employer Organisation (PEO), similar to an Employer of Record (EOR), provides HR and administrative services in foreign jurisdictions. Companies use PEOs to operate in new markets while avoiding the regulatory and administrative burden associated with establishing a local legal entity.

When entering a new market, local labour regulations can create operational friction and divert internal resources toward compliance management. A PEO supports companies by managing essential employee services such as payroll, benefits administration, and regulatory compliance, helping businesses save time and control costs.

Why Should You Choose a Global PEO Instead of Company Incorporation in Andorra?

Establishing a company in Andorra involves registration procedures, regulatory approvals, and ongoing reporting obligations. Working with a PEO removes the immediate need for a physical and legal presence, allowing teams to remain focused on strategic and revenue-generating activities.

A PEO:

• Reduces setup timelines
• Reduces upfront and ongoing costs
• Limits exposure to bureaucratic and legal risk
• Provides access to local expertise and established HR networks

How Does a PEO in Andorra Work?

INS Global’s PEO solution in Andorra supports employee hiring and administration in four clear steps:

1. We assess your operational needs and design a tailored employment support plan.
2. Our PEO framework enables compliant hiring and workforce management in Andorra.
3. All administrative and legal aspects of payroll, social security, and HR compliance are handled by INS Global.
4. Your employees focus on daily operations while we manage HR administration and regulatory obligations.

How Do PEOs and Employer of Record Differ?

Before entering a PEO or EOR arrangement, it is important to understand how these models differ in practice:

• A PEO provides HR and payroll services to employees working for another company.
• PEO services typically include payroll processing, tax reporting, and compliance support.
• An Employer of Record acts similarly to a PEO but also becomes the legal employer of the workforce.
• An EOR assumes full legal responsibility for employment contracts and statutory obligations.
• Under a PEO arrangement, employment contracts generally remain between the company and the employee.
• Under an EOR arrangement, contracts are legally issued by the EOR on behalf of the client company.

Depending on local regulations, the terms PEO and EOR are sometimes used interchangeably, and many providers, including INS Global, offer both models based on client needs.

Labour Law Overview Relevant to PEO Services in Andorra

Employment contracts in Andorra must be issued in writing and are typically drafted in Catalan. Contracts define salary, working hours, job responsibilities, and termination conditions, with remuneration paid in euros. Statutory protections apply consistently across sectors.

Standard working hours are generally set at 40 hours per week. Overtime is permitted within legal limits and must be compensated according to contractual and statutory rules.

Employees are entitled to at least 30 calendar days of paid annual leave, in addition to national and parish-level public holidays. Sick leave, maternity leave, and paternity leave are administered through the social security system, subject to contribution and certification requirements.

Working Hours in Andorra

The standard working time in Andorra is generally set at 40 hours per week, typically distributed over five working days.

Overtime is permitted within legal limits but must be compensated either through additional pay or time off, depending on the applicable agreement. Employers are required to maintain accurate records of working hours.

Daily and weekly rest periods are mandatory, with employees entitled to at least one full day of rest per week, usually Sunday.

Family and Sick Leave in Andorra

Andorra provides statutory protections for illness, maternity, and family-related leave through its social security framework.

Maternity leave is typically granted for a period before and after childbirth, with benefits funded through the social security system, provided eligibility and contribution conditions are met. Paternity leave and parental leave provisions also exist, supporting shared caregiving responsibilities.

Employees are entitled to paid sick leave, subject to medical certification. Compensation is generally covered by the social security system after any initial waiting period, with employer obligations focused on compliance and reporting.

Employer Contributions in Andorra

Employers are responsible for registering employees with the CASS social security system and making monthly contributions that fund healthcare, pensions, and family benefits. Employer contribution rates are higher than employee rates and must be calculated accurately as part of payroll.

A PEO ensures that payroll calculations, tax withholding, and contribution payments are processed correctly and reported in line with Andorran requirements.

Why Choose a PEO to Help You Hire and Manage Employees in Andorra? How INS Global Supports Expansion

INS Global’s PEO solution in Andorra acts as a strategic partner for companies seeking to hire quickly and compliantly in a small but highly regulated labour market.

A Professional Employer Organization, similar in function to an Employer of Record, enables companies to employ staff in Andorra without immediately establishing a local legal entity. This is particularly valuable given the administrative requirements, work authorization processes, and social security obligations that apply in the country.

By managing payroll, employment contracts, statutory benefits, and ongoing HR administration, a PEO reduces operational complexity and ensures full compliance with Andorran labour law. This allows businesses to focus on market entry and growth while minimizing legal and administrative risks.

To explore how INS Global can support your expansion into Andorra with tailored employment solutions, contact our team of experts today.