Andorra

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1966 (social security).

Current law: 2008 (social security), implemented in 2009; and 2011 (social security), implemented in 2012.

Type of program: Social insurance system.

Coverage

Employed and self-employed persons.

Source of Funds

Insured person: A choice of 2.5%, 5%, or 7.5% of gross earnings (old age) plus 3% of gross earnings (disability and survivors).

The insured's contributions also finance sickness and maternity and work injury benefits.

Self-employed person: A choice of 10%, 12.5%, or 15% of average monthly earnings of all insured persons covered by the National Social Security Fund in the previous year (old age) plus 10% of gross earnings (disability and survivors).

Average monthly earnings of all insured persons covered by the National Social Security Fund in the previous year are €1,990.21.

The self-employed person's contributions also finance sickness and maternity and work injury benefits.

There are no maximum earnings used to calculate contributions.

Employer: 7.5% of gross earnings (old age) plus 7% of gross earnings (disability and survivors).

The employer's contributions also finance sickness and maternity and work injury benefits.

There are no maximum earnings used to calculate contributions.

Government: Any deficit.

Qualifying Conditions

Old-age pension: Age 65, with at least 145 months of contributions (85 to 144 months of contributions if at least 60% of the contributions were made during the last 15 years before the date the benefit is paid).

Spouse's supplement: Paid if the insured's spouse is aged 65 or older and is ineligible for a pension in his or her own right; a top-up benefit is paid if the spouse receives a pension in his or her own right of less than 10% of the value of the insured's pension.

Disability pension: Must be assessed with a Category A disability, Group I disability (at least 60% loss of earning capacity and capable of performing his or her normal or equivalent work), Group II disability (incapable of performing his or her normal or equivalent work), and Group III disability (incapable of performing any gainful activity); or a Category B disability (incapable of performing any gainful activity and requiring constant attendance to perform daily functions). Insured persons younger than age 21 must have at least one month of contributions; if aged 21 to 49, must have contributions of at least three times the insured's age minus 54; 96 months, if aged 50 to 65.

Constant-attendance supplement: Paid if the insured requires the constant attendance of others to perform daily functions.

The assessed degree of disability may be reviewed on the request of the insured or the National Social Security Fund.

Survivor pension: The deceased must have had at least 36 months of contributions during the last 48 months prior to death, or 60 months of contributions during the last 72 months prior to death. If the death occurred as the result of an accident or occupational disease, the contribution period requirement is waived.

Eligible survivors include the spouse, or cohabitating partner aged 55 or older. Divorced spouses or separated partners aged 55 or older at the time of the insured's death are eligible.

The survivor pension ceases on remarriage or new cohabitation.

A surviving spouse younger than age 55 receives a pension for a limited amount of time.

Noncontributory supplement: Paid if the survivor pension is less than 50% of the legal minimum wage. The deceased must have made at least 240 months of contributions based on the legal minimum wage and the survivor's income must be less than the average declared salary to the social security institution during the calendar year immediately prior to the year in which the insured's death occurred.

The legal monthly minimum wage is €962.

Funeral grant: The grant is paid to the person who paid for the funeral.

Old-Age Benefits

Old-age pension: The value of the insured's pension is linked to the number of contributions made and the contribution rate chosen by the insured. Each monthly contribution is converted into pension points by dividing total monthly contributions (insured person and employer) by the value of the pension point used to calculate the pension contribution. At retirement, an annual pension is calculated by multiplying the insured's total lifetime pension points by the value of the pension point used to calculate the pension benefit. The benefit is paid monthly.

The value of the pension point used to calculate the pension contribution is €17.36792. The value of the pension point used to calculate the pension benefit is €2.17099.

Spouse's supplement: 10% of the insured's monthly pension is paid. If the spouse receives a pension in his or her own right, the spouse's pension is topped up to equal 10% of the insured's pension.

Benefits are payable abroad.

Benefit adjustment: Benefits are adjusted annually according to the value of the pension point. The pension point is adjusted annually according to changes in the consumer price index.

Permanent Disability Benefits

Disability pension: 30% of the insured's average monthly earnings in the last 12 months before the disability began is paid for a Category A, Group I disability; 50% for a Category A Group II disability; 75% for a Category A Group III disability; and 90% for a Category B disability.

The disability pension is replaced by the old-age pension at age 65. If the old-age pension is lower than the disability pension, the old-age pension is raised up to the level of the disability pension.

Benefits are payable abroad.

Benefit adjustment: Benefits are adjusted annually according to changes in the consumer price index.

Survivor Benefits

Spouse's pension: 50% of the old-age or disability pension the deceased received or was entitled to receive is paid.

Noncontributory supplement: The survivor pension is topped up to 50% of the legal monthly minimum wage.

The legal monthly minimum wage is €962.

Orphan's pension: 30% of the legal minimum wage is paid to each eligible child.

Benefits are payable abroad.

Funeral grant: A lump sum of €1,990.21 is paid.

Benefit adjustment: Benefits are adjusted annually according to changes in the consumer price index.

Administrative Organization

National Social Security Fund (http://online.cass.ad/web/lacass/home), managed by an Administrative Council and Director, administers the program.

Sickness and Maternity

Regulatory Framework

First law: 1966 (social security).

Current laws: 2008 (social security), implemented in 2009, and 2011 (social security), implemented in 2012.

Type of program: Social insurance system.

Coverage

Employed and self-employed persons.

Source of Funds

Insured person: See Old Age, Disability, and Survivors.

Self-employed person: See Old Age, Disability, and Survivors.

Employer: See Old Age, Disability, and Survivors.

Government: None.

Qualifying Conditions

Cash sickness benefits: Must have at least 25 days of contributions for the first claim. For subsequent claims, with less than one year of contributions, the insured must have at least 15 days of employment in the last month before the claim; with one to three years of contributions, at least 10 days in the last two months before the claim; with four to five years, at least five days in the last three months before the claim; and with more than five years of contributions, there are no conditions.

Cash maternity benefits: Must have at least six months of coverage before the expected date of childbirth (or adoption) and three months of employment in the previous six months. A self-employed person must have at least six months of coverage and six months of contributions during the last six months before the expected date of childbirth (or adoption).

Sickness and Maternity Benefits

Sickness benefit: 53% of the insured's average daily wage in the last 12 months is paid for the first 30 days of sick leave; 70% of the insured's average daily wage in the last 12 months is paid from the 31st day.

Benefits are paid after a three-day waiting period, from the first day if the insured has more than five years of contributions.

Maternity and paternity benefit: 100% of the insured's average daily wage in the last 12 months before the maternity leave is paid to the mother for 16 weeks; two additional weeks are paid for each child in case of multiple births or multiple adoptions. (The father can receive the benefit from the sixth week after childbirth instead of the mother.); 100% of the average daily wage in the last 12 months before childbirth or adoption is paid to the father for 14 days after childbirth or 14 days after the mother returns to work.

Workers' Medical Benefits

Benefits include primary, specialist and maternity care; hospitalization; and transportation under certain conditions.

Cost sharing: The National Social Security Fund reimburses medical expenses, up to 75% of the scheduled fees (100% for maternity care; 90% for hospitalization; 65% for functional rehabilitation, speech therapy and orthopedics). If the health care provider is not a signatory of the National Social Security Fund, reimbursements are based on 33% of the scheduled fees.

There is no limit to duration.

Dependents' Medical Benefits

Medical benefits for dependents are the same as those for the insured.

Administrative Organization

National Social Security Fund (http://online.cass.ad/web/lacass/home), managed by an Administrative Council and Director, administers the program.

Work Injury

Regulatory Framework

First law: 1966 (social security).

Current laws: 2008 (social security), implemented in 2009, and 2011 (social security), implemented in 2012.

Type of program: Social insurance system.

Coverage

Employed and self-employed persons.

Source of Funds

Insured person: See Old Age, Disability, Survivors, Sickness and Maternity.

Self-employed person: See Old Age, Disability, Survivors, Sickness and Maternity.

Employer: See Old Age, Disability, Survivors, Sickness and Maternity.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period.

Temporary Disability Benefits

66% of the insured's average daily wage in the last 12 months is paid for the first 30 days; 80% from the 31st day until the degree of disability has been assessed.

Permanent Disability Benefits

Permanent disability pension: For an assessed disability of a least 60%, the pension is 100% of the average monthly earnings in the last 12 months multiplied by the assessed degree of disability.

Partial disability: For an assessed disability from 41% to 60%, the pension is the insured's average monthly earnings in the last 12 months multiplied by 75% of the assessed degree of disability. If the assessed disability is from 10% to 40%, the pension is the insured's average monthly earnings in the last 12 months multiplied by 50% of the assessed degree of disability.

For an assessed degree of disability of less than 10%, a lump sum of three times the insured's average monthly salary in the last 12 months is paid.

The permanent disability pension is replaced by the old-age pension at the age of 65 if the old-age pension amount is greater than the disability pension.

The assessed degree of disability may be reviewed at the request of the insured or the National Social Security Fund.

Benefits are payable abroad.

Benefit adjustment: Benefits are adjusted annually according to changes in the consumer price index.

Workers' Medical Benefits

Benefits include primary and specialist treatment, transportation, and hospitalization.

Scheduled fees are reimbursed according to conventional rates.

Survivor Benefits

Spouse's pension: 50% of the old-age or disability pension the deceased received or was entitled to receive is paid to a surviving spouse older than age 55 who is not gainfully employed and ineligible for a pension in his or her own right.

Eligible survivors include the spouse, or cohabitating partner aged 55 or older. Divorced spouses or separated partners aged 55 or older at the time of the insured's death are eligible.

The spouse's pension ceases on remarriage or new cohabitation.

A surviving spouse younger than age 55 receives a spouse's pension for a limited amount of time.

Orphan's pension: 30% of the legal monthly minimum wage is paid to each child younger than age 18.

The legal monthly minimum wage is €962.

Benefits are payable abroad.

Benefit adjustment: Benefits are adjusted annually according to changes in the consumer price index.

Administrative Organization

National Social Security Fund (http://online.cass.ad/web/lacass/home), managed by an Administrative Council and Director, administers the program.

Unemployment

Regulatory Framework

There is no separate unemployment program, but government assistance is available for identified cases of need.

Family Allowances

Regulatory Framework

First law: 2008 (social security).

Current law: 2008 (social security), implemented in 2009

Type of program: Universal.

Coverage

Employed and self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Family allowance: Must have been a resident of Andorra for at least seven years and covered by the National Social Security Fund for the last three years, with at least 24 months of contributions.

Means tested: Monthly income must be less than one and a half times the average monthly earnings of all insured persons in the previous year.

The average monthly earnings of all insured persons in 2013 were €1,990.21.

Family Allowance Benefits

Family allowance: At the birth of the second or subsequent child, 10% of the legal minimum monthly wage is paid monthly for each child.

The legal monthly minimum wage is €962.

Birth grant and adoption allowance: A lump sum of 50% of the legal minimum monthly wage is paid for each child.

The legal monthly minimum wage is €962.

Administrative Organization

National Social Security Fund (http://online.cass.ad/web/lacass/home), managed by an Administrative Council and Director, administers the program.