Andorra is a small European country known for its unique fiscal and social system. Among its institutions, the Caixa Andorrana de Seguretat Social (CASS) stands out, responsible for managing the Principality's social security system.
Feb 18, 2024
The CASS was established in 1967 to provide protection for Andorran citizens and residents in the event of illness, occupational accidents, or maternity. Here is a full description of how this system works and what its cost is for people living and working in Andorra.
The social security system in Andorra, like many countries, is divided into two parts: economic benefits and reimbursement benefits. The former cover various situations of disability, temporary incapacity, widowhood, orphanhood, or retirement; while the latter are related to healthcare in the event of a work accident, common illness, or maternity.
Temporary Incapacity: It is granted to workers who, due to an illness or accident, cannot perform their work functions for a specific period. The amount will vary depending on the regulatory base and the type of contingency (common illness or work accident).
Widowhood: A pension is granted to the widow or widower of a deceased worker. The amount is calculated based on the beneficiary's age and the duration of the marriage.
Orphanhood: Pensions are granted for children under 18 years of age (or 21 if they are studying), whose father or mother has passed away.
Retirement: The minimum age to access retirement is 62 years, although there are certain incentives for early retirement. The amount of the pension is calculated based on the worker's average salary over a specific period, as well as the number of years contributed.
These benefits cover part of the medical expenses resulting from work accidents, common illnesses or maternity; such as medical consultations, exams, surgical treatment or pharmacological treatment, among others. Generally, the CASS assumes 75% of these expenses, while the worker must face the remaining 25%.
However, it is worth mentioning that public employees have a special regimen through which they are entitled to free healthcare. Likewise, non-working people over the age of 60 enjoy this benefit.
Both employees and employers must make contributions to the social security system. Below are the current rates:
Workers: They must contribute 7% of their gross salary to the CASS to contribute to the general system and another additional 2% for reimbursement benefits.
Entrepreneurs: For their part, they must contribute 15.5% of each employee's gross salary, which is distributed in 9.5% for the general system and 6% for reimbursement benefits.
Despite not being a member of the European Union, Andorra has several ongoing bilateral agreements signed with neighboring countries such as Spain or France in relation to the coordination of social security systems. Among other things, these agreements allow:
Mutual recognition of rights and obligations in terms of social security between the two signatory countries.
The application for welfare benefits that include medical care, hospitalization, etc., by individuals who are displaced beyond a temporary stay.
The transfer of accumulated contributions between the two systems towards a single pension.
It should be noted that each of these agreements must be reviewed on an individual basis, as they vary depending on diplomatic relations with each country and the specific social security regulations of each.
Foreign workers wishing to work in Andorra must obtain a work and residence permit before they can opt for benefits from the Andorran social security system. To do this, it is necessary to meet a series of requirements and process the corresponding application with the Ministry of Social Affairs and Housing of the Government of Andorra.
Upon its entry into force, this permit will grant non-national workers the same access to benefits and services of the Social Security system on equal terms with any Andorran citizen.
The Caixa Andorrana de Seguretat Social (CASS) is the entity in charge of managing the social security system in Andorra, a fundamental aspect to ensure social protection of both citizens and residents. Social Security in Andorra includes economic benefits for disability, temporary incapacity, widowhood, orphanhood, or retirement, as well as reimbursement benefits associated with healthcare in the event of a work accident, common illness, or maternity.
The financing of this system comes mainly from the contributions made by workers and entrepreneurs, who contribute between 7 and 15.5% of their gross salary, respectively. Although Andorra is not part of the European Union, the country has signed international agreements with some member states to regulate the mutual recognition of rights and obligations in terms of social security.
