Hire in Andorra

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Andorra has an advanced marketplace economic system that is driven by finance, retail, and tourism sectors. Andorra is authorized to hold rate variations from different EU countries, and therefore travellers enjoy shopping on duty-free goods. In 2017, the Andorran government announced the results of the labor force survey for the first time. Andorra has an unemployment rate of 1.7% compared with neighboring countries, which is in a very advantageous position. The unemployment rate in Spain in 2016 was 17.3%, and in France, it was 9.4%. This positive value is closely related to the gradual increase in employees and wages and the significant decrease in the number of people registered with the labor administration. Other important indicators are the recovery and the increase in imports since 2008 of more than 1.3 billion euros. The tourism industry has also increased its profits, touching almost 8 million tourists each year.

Overview of Andorra

Andorra is a small independent European country nestled among the southern peaks of the Pyrenees Mountains, bordered on the north and east by France and the south and west by Spain. It is one of Europe's tiniest countries. Andorra la Vella is the capital.

Total population – 77,142 (2019)

GDP – 3.66 billion USD (FY20) 

Economic Overview

Andorra's economy is based on tourism, which accounts for around 80% of GDP. The duty-free status of Andorra and its summer and winter resorts draw an estimated 9 million tourists each year. Andorra's comparative advantage has reduced in recent years as the economies of neighbouring France and Spain have opened up, allowing for more goods to be available with cheaper tariffs. With its "tax haven" status, the banking sector also makes a significant contribution to the economy. Because fertile land is scarce, agricultural production is limited, and most food must be imported. Sheep farming is the most common livestock activity. Cigarettes, cigars, and furniture are the most common products manufactured. Andorra is a member of the European Union's Customs Union and is treated for commercial purposes.

Market size 

Consumer Goods was Andorra's main export industry in 2014, accounting for 63.20 percent of total exports. In 2014, Andorra exported 1,032 different products.

In 2019, Andorra's annual GDP growth rate was 1.85 percent.

A brief glimpse of the industries -  

  • Agriculture: Natural resources are modest, but they include potential hydroelectric power, mineral water, lead, timber, iron ore, and hot springs, which have led to the development of some of Europe's most prestigious health spa resorts. Agriculture is limited due to the hilly terrain. In truth, only 2% of Andorra's land is suited for agriculture. Nonetheless, the Valira Valley is home to the production of grains such as barley, wheat, rye, oats, and the raising of cattle and sheep. Most cropland is used for hay production, and rivers in the country provide irrigation water for modest vegetable and tobacco farms. Tobacco is the most profitable crop, accounting for 8% of total farmland. Andorran tobacco and eastern tobacco are among the tobacco varieties grown. There are approximately 1,100 cattle and 9,000 sheep in the region, and meat output has increased little in recent years. To meet local demand, the majority of Andorra's food must be imported.
  • Manufacturing: Furniture, cigarettes, and cigars for export are among Andorra's main manufacturing items. Because of Andorra's reputation as a tax haven, cigarettes are substantially cheaper than France or Spain. As a result, smuggling cigarettes out of Spain has become a big concern, particularly during the 1990s, when smuggled cigarettes accounted for 15% of all cigarettes sold in the country. The EU and member states exerted significant political and diplomatic pressure on the Andorran administration due to this problem. As a result, the percentage of counterfeit cigarettes on the Spanish market fell to 12% in 1997 and 5% in 1999.

Trade, Services, and Tourism: The services sector accounts for the majority of Andorra's GDP. Tourism, in particular, makes for more than 80% of GDP. Visitors from Spain and France, in particular, throng to the country all year to purchase watches, cigarettes, technological products, and jewelry. During the winter, tourists flock to the nation to ski in resorts such as Soldeu. The little glacial lakes that dot Andorra's alpine terrain are another tourist draw. Lake Juclar is the largest glacial lake globally, with a surface size of 28 hectares and tens of thousands of tourists flocking to see its untouched beauty. The country attracts about 10 million foreign visitors each year, making it the world's most visited country per capita.

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Cost of living in Andorra

Andorra's average prices are 10 to 25% less expensive than most European countries and about 40% less expensive than Singapore and Hong Kong. This is mostly attributable to reduced import tariffs and cheaper corporate and personal taxes. Despite its tiny size, the country has a well-developed banking system that helps to support the economy and provides for a broad market. According to the Department of Statistics, the inflation rate was 2.6 percent in 2017 - this is a regulated inflation rate that can be traced back decades, implying that prices will not fluctuate significantly in the next few years. A monthly salary of US $3,559 is enough to live comfortably in this city.

Category Area of expense Category Range
Utilities Electricity, Water, Heating, Internet services, Prepaid mobile tariff US $156.25 US $71.20 - US $151.30
Transportation Cost One way ticket, local transport, Taxi tariff, Gasoline. US $6.69 US $3.09 - US $6.53
Food and Beverage Grocery, Vegetables, Meat and Poultry US $80.7 US $35.60 - US $71.20
Salaries and Financing Average monthly net salary US $2,001.37 US $1800- US $4000

Cost of Renting

Although rent costs are subjective and dependent in part on the property's condition, below is an overview of price ranges in 2018: In Andorra la Vella, a 40 m2 studio apartment or 1 bed/1 bath property costs roughly US $416 per month. In La Massana, a modern two-bedroom, one-bathroom, 80m2 unfurnished apartment costs around US $772 per month. Chalets and larger properties cost between US $1782 and US $4754 per month.

The top sectors that are expected to hire in 2021 in Andorra are:

  • Hospitality Industry
  • Retail Industry
  • Education Industry
  • Tourism Industry
  • Real Estate Industry

Top skills in Andorra 

  1. Proficiency in French, English and Spanish
  2. Experience in hospitality, gastronomy, or comparable fields.

Major skills and areas which have witnessed a recent growth rate 

  • Language (Academic and creative opportunities) 
  • Hospitality

Top skills city-wise occupation-wise

  • Andorra la Vella​: Andorra la Vella​ is the largest city in Andorra and is the hub of economic activities. The most in-demand job profiles here are translators, interpreters, and hospitality professionals. The average salaries here are around US $45,000.
  • Escaldes-Engordany: This parish comprises les Escaldes, Engordany, Els Vilars d’ Engordany, Engolasters, and El Fener. The cornerstone of the economy here is the textile industry, followed by tourism and hospitality. The average salary here is around US $50,000.

Hiring Cost

The cost of hiring is an extremely important facet for employers while conducting a recruitment process. You need to think about several factors before deciding to hire new personnel, such as: - 

  • Onboarding and training 
  • Opportunity costs 
  • Interviews and hiring processes 
  • Time invested 

Salary structure for various roles 

The table below highlights the average salaries that are offered to employees in Andorra according to different sectors:

Physician $107,512
C level executive $90,149
Dentist $82,013
Data scientist $71,211
Pharmacist $69,833
Architect $56,138
Product manager $54,464
IT Manager $52,897
Finance manager $52,531
Project manager $49,081
Software engineer $48,544
Mobile developer $45,921
Marketing manager $45,026
Sales manager $44,728
Business analyst $43,701
Business development $43,520
Research scientist $43,433
Ux designer $43,228
Operations manager $41,385
Web developer $40,047
QA engineer $38,575
Financial analyst $37,308
Data analyst $35,960
Content marketing $31,400
Web designer $31,388
Copywriter $30,596
Office manager $28,546

Employment laws in Andorra 

  1. Work schedules: Andorra's working week is 40 hours long, as it is in most countries. Any weekly hour variation due to operational reasons requires a fifteen-day notice. This does not always apply to managers and executives who have worked out other arrangements with their employers. Every employee is also entitled to a 30-minute break after every 6-hour work session. Working hours per week, including overtime, must never exceed 60 hours per week. In addition, each day's maximum hour length is 12 hours. Working hours must be limited to under 1800 per year.
  1. Salary:  In 2020, the monthly minimum wage was € 1083.33. A 6.5 percent Social Security payment is included in the employee deductions. The employer is responsible for 15.5 percent. Depending on the position, negotiating additional bonuses, incentives, or commissions with the firm is always an option.
  1. Overtime: If no other arrangement with the employer has been reached, the payment increases by 20% for nighttime labor. The following regulation applies to general overtime. Up to four hours have a 25% surcharge, four to eight hours have a 50% surcharge, and an hour after that has a 75% surcharge. Keep in mind that a typical working day should not last more than 12 hours.
  1. Holidays: In Andorra, there are only four statutory public holidays: New Year's Day on January 1, Andorran Constitution Day on March 14, Our Lady of Meritxell's Feast on September 8, and Christmas on December 25. (These days do not apply to the touristic and medical sector). If an employee is required to work on a national holiday, he or she is entitled to two days off as compensation. If the employer fails to provide compensation days, the employee is entitled to triple remuneration. Employees are entitled to 23 days of vacation per year, which are always computed in accordance with annual working hours. He or she is required to take his or her vacation throughout the same calendar year.

How Can Skuad Help You with Hiring in Andorra?

If you are looking to streamline your hiring processes in Andorra, then it is essential to partner with a team of experienced consultants. This decision can help you save a significant amount of money as well as time. Connect with Skuad experts to know more about the recruitment services on offer.

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