Andorra CASS Targets €1.2M Recovery from 2,950 Underpaying Self-Employed by 2027

Andorra's Social Security faces a deadline of December 31, 2027, to regularize contributions from 2,950 self-employed workers who underpaid between 2021 and 2025, potentially recovering €1.2 million before prescription takes effect in 2028.

The CASS has identified discrepancies in declared contribution bases compared to business income data from the Tax Agency, affecting this group of cases still pending review or processing. The process must conclude within legal time limits, originally spanning 2024 to 2027, to secure the estimated €1.2 million influx in 2027. This would lift self-employed revenue by an additional 1.7% over standard collection rates.

The regularization effort builds on prior cross-checks, with projections baked into the 2026 and 2027 budgets. Self-employment continues its rapid expansion: from 5,426 registered contributors in 2015 to a forecasted 10,055 by 2027, surpassing 10,000 for the first time. Contributions from the sector have more than tripled over 12 years, rising from €22.75 million to a projected €74.65 million.

Recent figures underscore the trend, with a monthly average of 9,381 self-employed contributors in the first five months of 2026, up 4.9% from 2025. The full-year estimate reaches 9,586, a 5.2% increase, fueled by average monthly salaries of €2,803.79. Revenue from this group is set to grow 11% in both 2026 and 2027.

CASS overall expects 50,696 salaried workers on average in 2027, a 2% rise, with total payroll mass up 5.5% amid a robust economy. Yet the general branch, covering healthcare, projects a €40.26 million cash shortfall. Own revenues of €239.87 million will fall short of €280.13 million in expenses, relying entirely on government transfers. The 10% contribution rate cannot cover rising healthcare costs, projected to increase 8.1% to €174.5 million due to an ageing population, pricier treatments and drugs, and broader public services.

The pension branch, by contrast, forecasts a €15.67 million surplus for the reserve fund, though long-term fragility calls for reforms. Pension expenses will rise 11.8% to €189.12 million, with beneficiaries up 5.1% to 19,944. The active-to-pensioner ratio will ease from 3.12 to 3.05.

Budget priorities include €6 million for IT upgrades and €1.5 million for headquarters repairs. New digital tools will offer insured users renewed health cards and faster processes with providers for referrals, approvals, and billing to improve oversight and efficiency. Funds will also support EU Association Agreement compliance, including a roadmap for social security coordination and rollout of the EESSI system for cross-border data sharing.