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Andorra's Social Protection Spending Hits €375.5M in 2025, Up 9.2%

Public spending on social protection in Andorra climbed to a record €375.5 million last year, fueled by sharp rises in elderly and illness benefits despite drops in family and unemployment aid.

Key Points

  • Total spending reached €375.5 million, 9.4% of GDP and 29.6% of public administration outlays.
  • Elderly benefits rose 11.7% to €203.7 million, driving most growth; illness/disability up 7.3% to €81.9 million.
  • Per capita outlay increased 4.7% to €4,412; family allowances down 6.6%, unemployment aid down 5%.
  • Spending up 64% since 2020, with current transfers at €312.4 million (83.2% of total).

Public spending on social protection in Andorra totalled €375.5 million in 2025, marking a 9.2% increase from €343.8 million in 2024 and setting a new record high, according to government data tracked by the Department of Statistics.

This figure, up €31.7 million year-on-year, accounted for 9.4% of GDP—an increase of 0.5 percentage points from 2024—and comprised 29.6% of settled public administration spending, excluding financial assets, liabilities, and transfers to public entities. Per capita outlay rose 4.7% to €4,412, compared with €4,213 the previous year.

Elderly benefits drove much of the expansion, climbing 11.7% to €203.7 million (54.3% of the total) with an added €21.3 million. Illness and disability support increased 7.3% to €81.9 million (+€5.6 million), as illness benefits grew 12.2% to €53.5 million while disability aid dipped 0.9% to €28.4 million. Housing expenditure advanced 5.2% to €30.8 million, including €25.3 million for social housing (+€1.5 million).

Survivors' benefits rose 8.9% to €22.6 million, and social exclusion aid gained 8.5% to €2.1 million. In contrast, family and child allowances fell 6.6% to €13.1 million, and unemployment support declined 5% to €2.7 million.

By economic category, current transfers dominated at €312.4 million (83.2% of the total), up 9.6%, while personnel costs increased 9.5% to €28.5 million and real investment held steady at €27.8 million.

The figures cover outlays by the central government, parishes, National Housing Institute, Andorran Women's Institute, Social Security Fund (CASS) reimbursements from its general and retirement branches, and the pension reserve fund. Data for Sant Julià de Lòria parish relied on an estimate due to missing 2025 settlements, with prior-year revisions and methodological adjustments affecting historical series.

Over the past five years, social protection spending has surged nearly 64% from €228.9 million in 2020, though the 2025 growth rate eased from 16.6% in 2024.

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