How to Hire Remote Employees In 


The Basics

Employer Taxes
Payroll Frequency
Official Language

Employment in 


Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Time savings: Hiring through a subsidiary or EOR can take months of onerous paperwork and legal wrangling. This is only multiplied if you want to hire in multiple countries.
Reduced overhead: You can save tens of thousands of dollars in onboarding costs by hiring through a company like Panther. You also have fewer responsibilities to provide benefits, further reducing overhead.
Greater flexibility: Contractors can be brought on as-needed. If they are not a good fit, you can choose not to renew them without incurring significant additional termination costs.
Reduced legal risk: Contractors generally don't have the host of legal protections that typically cover full-time employees.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: While it's important to understand local contractor law, for most firms, misclassification risk is minimal.
Lack of Control: For a worker to be classified as a contractor, they should be allowed to work independently on their assigned tasks. Hiring full-time employees offers a wider range of management options.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.

Set up a subsidiary in 


A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Andorra can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Andorra, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Andorra.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Andorra is not the same as paying workers in your own country. Employees have to be paid using Andorra’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.


 Specific Information

Working Hours

The standard work in Andorra is 40 hours over five days.


In Andorra, employees overtime is only allowed if a shortage of staff makes it necessary for the available employees to work extra hours, if there is a temporary increase in the business’ activities (e.g., the month of December for a retailer that sells many items related to Christmas), or if other extraordinary circumstances require it.

Payroll Tax



  • Social security

Minimum Wage

The minimum wage in Andorra is is 5.63 per hour and 975.87 per month, for all workers. The minimum wage is set by the government and adjusted twice a year


Pay Cycle

Andorra employees receive their salary in monthly basis.

13th Salary

No Info.


Paid Time Off (PTO)

In Andorra, employees are entitled to 30 days of paid yearly vacation in addition to public holidays. More vacation days may be included in employment agreements and collective bargaining agreements.

Employee’s leave is normally scheduled by collective agreement or by agreement between the employer and the employee. If there is no such agreement, the employer schedules the leave, based on the needs of the business. Employees must be notified of when they will receive leave at least 45 days in advance.

Public Holidays

There are 14 public holidays.

Sick Days

Employees are entitled to 12 months of sick leave, which may be extended in six month increments for up to three years. Employees are paid a varied proportion of their salary depending on how much sick leave they require. Salary is determined by the employee's average daily earnings over the previous 12 months of employment, or minimum pay if no earnings are available.

Maternity Leave

Female employees receive 20 weeks of paid maternity leave and two additional weeks for each additional child in the event of multiple births or adoptions.

The expecting woman can start her maternity leave up to four weeks before the due date. Benefits are provided at 100% of a female employee's average daily wages for the previous 12 months worked out of the previous 24 months.

Benefits are paid at 100% of the female employee’s average daily earnings, based on the last 12 months worked of the 24 months prior to leave. Part of the female employee’s maternity benefit is paid to the father either after birth of the child or after the female employee returns to work.

Paternity Leave

The father receives a portion of the female employee's maternity benefit either after the kid is born or after the female employee returns to work.

Beginning six weeks after the birth, the child's father, or the mother's spouse or partner, has the option of taking the balance of the mother's maternity leave.

Parental Leave

There are no provisions in the Andorra law regarding parental leave.

Other Leave

No Info.

Marriage Leave

No Info.

Bereavement Leave

No Info.


Termination Process

In Andorra, the contract may be terminated in the following circumstances:

  •  upon the expiration of the term or termination of the work for which the employee was hired; upon mutual agreement of the parties;
  • upon the death or permanent disability of the person worker from performing the work contracted;
  • upon the death, incapacity, or retirement of the employed person; upon the worker's deprivation of liberty by a court
  • upon the worker's declaration of ban.

Notice Period

The notice period is one day for every month of service, up to 90 days. Employment contracts may have a variety of various notice provisions.

Employees are expected to provide their employer between 14 and 30 days notice of their resignation.

Severance Pay

The Severance Pay in Andorra depends on the Duration of Employment:

  • If an employee is terminated without cause, he or she is entitled to the equivalent of two months' salary plus one week's pay for each full year of service, if the employee has worked for the employer for up to five years.
  • If the employee has worked for more than five years but less than fifteen, he is entitled to three months' salary plus two weeks' pay for each year of service.
  • Employees who have worked for their employer for at least 15 years are entitled to six months' salary plus three weeks' pay for each year of service.

Probation Period

Probation period is cannot exceed one month.