The question of how the system of social security in each country is a recurring theme for employees, employers and self-employed sector and any place. Also generating a lot of doubts, it is an issue that tends to vary according to different rules and regulations are formulated each year around the taxation of each nation.
The truth is that any country that enjoys this system requires a contribution employers and employees to enjoy the benefits associated with it, such as a retirement pension, a sick leave due to illness, unemployment benefits ...
In the case of Andorra, the Andorran Social Security (CASS) is the organization that runs the Andorran Social Security, created in 1966 and is a semi-public organization whose mission is to ensure the administrative, technical and financial Andorran system of social security, under the control of the Government. A system currently divided into two branches: branch and branch general retirement.
Social security contributions as an employee for someone else
In the case of an employee by an employer , the Andorran law states that the percentage should the CASS raise the gross monthly salary is 22%, a figure divided between worker and employer.
Workers must allocate 6.5% of their gross monthly salary of the CASS coffers distributed by 3% to 3.5% and general branch to branch retirement; while in the case of the company that provides 15.5% (7% and 8.5% for the general branch and retirement, respectively).
Note that it is the company that handles the monthly amounts paid directly to the CASS and that some companies decide to take a higher percentage thus released in part to its employees.
Social security contributions as a self-employed
Although business has a part that is called self-employed, who are those individuals who perform regularly, personal and direct economic activity for profit without being subject to an employment contract even if you use the service paid for others.
To be considered workers are subject to the Social Security, but the difference is that they are required to have their own system in which all contributions are on your own. In the case of Andorra should be noted that the same CASS that decides who may hold this status and who does not .
Moreover, the minimum contribution base for self is 2041.35 euros as established by law, while the percentage is allocated to CASS is the same as in the case of a worker as an employee the 22% of your gross monthly salary .
It has allocated 10% for the general branch and 12% for the self-employed retirement. However, it should be noted that those freelancers who meet certain requirements specified by the same CASS will benefit reductions and pay less monthly.
If you need to receive personalized advice or have any questions about the system of contributions do not hesitate to contact your tax advisor IS21 with no obligation . We are happy to help you!