Ad Payroll Social

Andorra payroll and social security, 2026

Source-cited working-paper draft for employees, employers and self-employed persons. No accountant has signed off this Guide.

1. Who this applies to

Use for employment exercised in Andorra and persons included in Andorran social security (CASS). Determine tax residence, actual work location, employment/self-employed status and applicable social-security legislation separately. A tax treaty does not by itself remove CASS; a foreign social-security coverage certificate needs the applicable agreement and dates. Do not default an unknown worker to resident or treat every company director as an ordinary employee. Social Security Law 17/2008, arts 18–19, 22–36; IRPF Law 5/2014, arts 8, 12, 50.

Resident individuals use IRPF; non-residents use IRNR on Andorran-source employment unless the operative treaty changes the result. A daily frontier worker can be non-resident under the specific residence rule. IRNR article 36 bis gives qualifying frontier/seasonal workers fully subject to CASS an elected employment calculation using specified IRPF deductions, prorated personal reduction and bonus. This does not make every such worker an Andorran tax resident or grant every family/home relief. IRPF art 8; IRNR Law 94/2010, arts 12, 25, 29, 36 bis.

Directors fall within self-employment only under article 19's cumulative remuneration, legal-residence and other conditions. An unpaid director with other qualifying direct coverage has an express exclusion; prove non-remuneration through the declaration, articles and, where required, company resolution. For a new company, the director contribution obligation starts thirty calendar days after company registration. Effective-working controlling partners can expressly elect the permitted self-employed route, with its conditions and twenty-four-month re-entry restriction. Working family members, titled professionals, sole traders, farmers and registered professional artists have their respective article 19 categories. Mixed employment and self-employment can create obligations in both categories. Social law art 19.

Special public-service, student, disability and other statutory coverage regimes need their own facts; this Guide supplies the ordinary employee/self-employed methods and the specifically described retired/young-worker exceptions, not a pension-benefit valuation.

2. Rates, bands and thresholds

The old 2025 minimum/average wages and the universal salary-band withholding table with a 7% ceiling are not 2026 methods. For ordinary CASS-covered employment use the actual ministry rate notice, not an estimated percentage selected from gross salary alone. IRPF regulation arts 24–26.

3. The base

Employee gross pay and CASS

Build global pay from fixed and variable salary, bonuses, contractual extra payments, remuneration in kind and the included termination/settlement items. CASS uses pay to which the worker is entitled, or actual pay if higher, with the express pension/startup-equity and other statutory exceptions. There is no general salaried contribution ceiling established by these ordinary provisions; do not cap employee pay at a self-employed percentage of average wages. Retain actual hours and each employer's liability for a multi-employer worker. Social law arts 33, 96–100; contribution regulation art 18.

For partners classified as salaried or assimilated under article 18, article 98(4) sets a separate minimum: use the monthly global pay entitlement, but never less than the official monthly minimum wage. For 2026 that floor is EUR 1,525.33 in January–June and EUR 1,568.67 from July. Record the partner’s legal classification and applicable wage period. This full contribution-base floor is distinct from article 99’s general-branch health complement and from the own-account director rules below. Social law arts 18, 98(4); January wage circular; July wage circular.

Genuine client tips/liberalities and qualifying reimbursements are different from salary. Qualifying occasional work meals, overnight hotel costs abroad and business travel require the circumstances and documentary proof in regulation article 18. Public transport is at invoiced cost; own-car travel is EUR 0.31/km plus evidenced tolls/parking. A flat allowance or bank label does not prove exclusion: nonqualifying amounts enter the contribution base in full. Necessary job training and business collective transport can be business use rather than a private benefit; private discounts, family benefits and below-legal-interest loans need separate valuation. Regulation art 18; tax administration benefits-in-kind response.

For cash payroll, employee CASS = contribution base × employee rate; employer CASS = base × employer rate. Deduct the employee share from wages and add the employer share to employer cost. The employer cannot transfer its contribution to the employee by agreement. For benefits in kind, distinguish cash available from the total assessable remuneration: do not subtract a noncash benefit from cash twice. Working pension recipients use the applicable general-only regime; early retirement can instead suspend the pension under article 205. Occupational injury is within the statutory general branch, not an invented extra percentage on ordinary pay. Social law arts 97, 100, 103, 205.

Below-minimum pay can require a general-branch health complement, rather than treating every employee's contribution base as automatically a full-time monthly wage. Regulation article 19 assigns the worker the 10% complement on the difference from the current minimum, subject to other direct coverage, multi-employer aggregation and the statutory exceptions. The indirectly insured part-time regime has its separate conditions. Identify actual hours, other coverage and the CASS decision before adding a complement. Social law arts 99, 224; regulation arts 19, 25.

CASS temporary incapacity, maternity, paternity, pregnancy-risk and invalidity benefits themselves have general/retirement contribution treatment under regulation article 21: CASS declares/pays the employer part and retains the beneficiary part. Retirement and lifetime widow pensions have general-only treatment; specified reimbursement, lump-sum and orphan benefits are outside that contribution base. Reconcile benefit periods and salary actually payable; do not charge employer salary contributions again on the same CASS-paid benefit. Regulation art 21.

Self-employed base and dated monthly quota

First classify article 19 status. Then apply article 101 to prior-year statutory net income and, for sole-owner/family-controlled directors, company turnover. Aggregate the relevant activities and companies; the statute adds back specified cohabiting-family remuneration deducted without employment status. A lower base requires an application; no declaration produces a 100% assessment, not permission to ignore a mandatory higher base. Voluntary higher bases are permitted. Social law arts 19, 101–101 bis.

All percentages/conditions come from article 101, with the 2026 reference. Apply the higher mandatory tier where triggered. Reduced 25/50/62.5/75% sole-owner or family-controller cases also require turnover below EUR 300,000 for the specified professional/business services or EUR 600,000 for other business. Family aggregation is through the second degree. Exact statutory endpoints matter: EUR 40,000 is not “above EUR 40,000”. The current-minimum floor applies to 50/62.5/75%, not automatically to the 25% base. For the ordinary 100% base the full monthly 22% quota is EUR 587.95. Art 101; CASS current contribution page.

The ordinary 25% startup rule reduces the base for the first twelve months; it does not waive the retirement branch. A restart requires the particular inactivity period: maternity/paternity/adoption or gender violence, twelve months for the stated 30–50 age group, six for the stated younger/older groups, or three for disability. All activities must qualify for the initial-activity route. Preserve the actual start dates and evidence instead of assuming a fresh entitlement on each company incorporation. Art 101(2)(a), (5).

A separate voluntary regime in article 223 quinquies applies to qualifying own-account persons under 35 in article 19(a), for the first twenty-four months. Its base is 55% of current minimum wage: first twelve months general 10% only, next twelve general 10% plus retirement 12%. It has restricted benefits and no indirect dependants as specified; it is not the generic director startup regime. Thus first-year monthly general quota is EUR 83.89 before July and EUR 86.28 from July, derived from the dated minimums. Do not replace it with 10% of 25% of average wages. Art 223 quinquies.

For an ordinary 25% contributor without qualifying direct health coverage elsewhere, article 99's separate health complement is 10% × (current monthly minimum wage − declared base). With EUR 668.13 base this is EUR 85.72 in January–June and EUR 90.05 from July; the ordinary full-branch EUR 146.99 quota is additional. File CASS0187 for the complement, effective from application until cancellation, then declare/pay monthly. A full month of temporary incapacity is declared zero; for part-month incapacity or a mid-month start, the CASS sheet expressly directs the insured to obtain its correct declaration amount. Use that amount, not an invented daily proration. CASS 2026 complement sheet, both pages; social law arts 99, 101.

IRPF withholding and annual liability

Employment net income deducts compulsory employee public social contributions and 3% of the eligible gross employment categories, capped EUR 2,500. The latter is neither a EUR 400 cap nor a general sole-trader deduction. Apply the personal/family/home/pension reductions and bonus to the actual annual facts; ad-income-tax supplies the full annual calculation. Family relief is EUR 1,000 per qualifying relative, actual qualifying tuition up to EUR 300 and the specified disability/dependency multiplier, not the legacy EUR 750 ascendant figure. Dependants have the statutory annual-income/minimum-wage test. Savings have a separate EUR 3,000 reduction and specified dividend/share/property exemptions; they do not become employment payroll deductions. IRPF arts 5, 13, 31–39, 43–49.

For ordinary wages, calculate annual projected net liability using the regulation's permitted inputs, divide by projected gross pay and express the percentage to two decimal places. For CASS-covered employment the ministry calculates and communicates the applicable rate; the employer uses the notice. The ordinary calculation is not the former gross-salary bands. Fixed 10% cases include the specified lectures, missing information and other categories in article 24. The worker can request a higher rate. A change greater than one percentage point triggers regularisation; recompute remaining estimated liability over remaining pay, with the regulation's 10% adjusted-rate ceiling. Multiple-payer and sick-pay notice rules must also be tested. IRPF regulation arts 24–27.

Private benefits are valued under the actual legal/administrative rule and market evidence. Article 29 excludes specified workplace canteens, work-accident/liability insurance and authorised-school education for employees' children. Employer-paid income on account normally adds to the in-kind value unless charged to the recipient; pension contributions have their specified exception. A shareholder's private car use can instead be movable-capital income at market value, as CV0312-2024 explains, rather than employee remuneration. Record legal capacity and business/private use. IRPF arts 28–29, 50; benefits response; CV0312-2024.

The monthly working paper needs cash/noncash gross, CASS base and branch, actual tax-rate notice, employee deductions, employer cost, other recoveries and net cash. Reconcile cash gross to net cash plus deductions, then reconcile the CASS/tax remittance to the respective ledger liabilities. Labels such as NÒMINA, SALARI, BONUS, LIQUIDACIÓ, DIETES, CASS and RETENCIÓ identify documents to investigate; they are not evidence of legal tax classification. EUR is the working-paper currency; establish the conversion evidence for foreign-denominated compensation rather than discarding the transaction.

4. Deadlines and filing

Register the employer with CASS before beginning activity. Employee affiliation/start notification is within the seven days before work and no later than the first working day, including probation. It is not a five-day-after-hire grace period. Employee exit and status changes use the three-day rules; general affiliation-data changes have the separate six-calendar-day rule. Own-account affiliation/start/exit and changes use the applicable three-day rules. Keep registration/affiliation evidence at least five years. Social law arts 24–39; Labour Law 31/2018, art 82.

Declare CASS monthly and pay within fifteen calendar days after month end, with actual hours and pay. CASS0031 is the combined contributions and IRPF/IRNR declaration. Both CASS-covered IRPF and CASS-covered IRNR wages use the 1st–15th of the following month; do not additionally remit the same withholding quarterly. Non-CASS IRPF employment withholding is quarterly in April, July, October and January, with the non-CASS annual summary 1–31 January. Non-CASS IRNR has its own following-quarter-month rule. Keep the approved form and submission/payment receipt. Social law art 96; IRPF regulation arts 33–35; IRNR regulation art 24; CASS0031.

Use the ministry communication procedure for personal circumstances and remuneration changes. New relationship communications are due within ten days; variation communications within ten days of occurrence/knowledge; annual spouse-income information by 15 December before the relevant year. Ministry annual notices arrive before 15 March; use the previous rate until notified. The notice's current-month effect for CASS cases differs from the next-month rule for non-CASS recalculation. The employer's estimated pay communication, substantial changes and employee exits have their own duties; do not confuse a more-than-20% pay-change communication with the greater-than-one-percentage-point rate trigger. Certificates are supplied 1 January–31 March; CASS cases on request. IRPF regulation arts 25–35.

The ministry also issues an extraordinary annual CASS-employment withholding adjustment proposal available from 1 April. A positive balance is paid within the ordinary IRPF return window; a negative balance can be confirmed for refund within that window. If other income requires a full IRPF return, include wages and withholding there instead of separately settling the partial proposal. The fixed-rate/non-CASS exclusions in regulation 36 still apply. IRPF regulation art 36.

Eligible frontier/seasonal elections are communicated within ten days of employment start and persist until revoked. A late election before year end follows the stated annual-return route. Seasonal workers ordinarily retain 10% withholding unless they elect the alternative calculation and appoint the required resident representative within the deadline; opted-in frontier workers follow the specified IRPF withholding rules. IRNR regulation arts 30–32.

Self-employed regularisation: article 96 distinguishes ordinary/extraordinary regularisation by 31 July of the current year from adaptation-year reconciliation by 31 January of the next year without surcharge/interest, followed by the specified February–July surcharge-free period. Retain the category, declaration and period so the correct route is used; relief is not an extension for unrelated arrears. Social law arts 96, 101 bis.

Pay wages to the nominated bank account, at the agreed interval no longer than a month, no later than three calendar days after the period. Give an itemised payslip and keep copies for at least three years, alongside the longer CASS evidence retention. Cash pay must meet the minimum even where food/lodging forms part of remuneration; the labour-law food/lodging value limit is 25% of the specified gross cash remuneration, not a universal tax valuation. Annual IRPF is ordinarily filed 1 April–30 September of the following year, subject to the actual filing exclusions in article 55; gross salary above EUR 24,000 alone is not the old blanket filing test. Labour law arts 74, 77–78; IRPF art 55.

5. Penalties and interest

Unpaid CASS has 5% surcharge up to one month, 10% from one month and one day through six months, and 20% beyond six months. An approved deferral requested within one month has the specified 5% treatment. CASS administrative error cancels the surcharge. Good faith, no gross negligence and no qualifying repetition permit a 50% reduction before request, or 30% if paid within ten days of request; repetition uses the two-year statutory test. Social law art 93.

CASS minor offences attract warning or 25–50 retirement-point sale values, serious offences 51–500 and very serious offences 501–20,000. Deliberately false contributions, withholding without remittance and declarations over three months late are very serious, not the old “serious” classification. Apply current point value and the actual offence/graduation; do not relabel points as euros. Arts 238–245.

Tax withholding defaults follow General Tax Law articles 23–25 and 125–132: voluntary late tax-bearing returns 2%, 5%, 10% by the statutory periods, or 15% following the specified request, with interest/sanction coordination; enforcement 2%, 10% or 20% by payment stage. Tax late interest for 2026 is 4.05%; it is not automatically the CASS enforcement rate. Wage arrears instead bear twice the legal interest, giving 6.48% annually for 2026's 3.24% legal rate. Labour offences are separately classified: minor fines EUR 50–500, serious EUR 501–3,000, very serious EUR 3,001–24,000 with statutory graduation. The old blanket EUR 500–10,000 “minimum wage fine” is not the current schedule. General Tax Law; Budget Law 1/2026 art 17; Labour law arts 78, 159, 163.

6. Cross-border points

Residence, physical working days, treaty employment/director/pension articles and the identity of the economic employer can change withholding. Obtain the actual treaty and residence proof before a reduced/exempt result. Social coverage is a separate agreement question. Domestic IRNR's ordinary employment base is gross, so employee CASS does not automatically reduce it; the elected frontier/seasonal method expressly permits the specified deductions. CASS-covered non-resident wages still have monthly withholding remittance. See ad-non-resident-income-tax for full domestic source, PE, treaty evidence and refund methods. IRNR arts 12, 25, 29, 36 bis; regulation art 24.

7. Two worked examples that recompute

Ordinary employee: annual calculation supports the actual notice

Resident, ordinary employment only, annual cash salary EUR 60,000, no family/home/pension reductions, full CASS general regime. Net employment is EUR 54,300 after EUR 3,900 employee CASS and EUR 1,800 eligible 3% expense. Personal reduction leaves EUR 30,300; tax is EUR 3,030 less EUR 800 bonus = EUR 2,230. The ordinary rate calculation is 3.72% to two decimals; assume the actual ministry notice confirms it. On EUR 5,000 monthly gross, deduct EUR 325 CASS and EUR 186 tax for EUR 4,489 net. Employer CASS is EUR 775 and cost EUR 5,775. Monthly withholding is a payment on account, not necessarily final annual liability.

oaCopy code
name: Andorra ordinary employee annual rate and monthly payroll
inputs:
  annual_salary: 60000
  monthly_salary: 5000
  employee_rate: 0.065
  employer_rate: 0.155
  expense_rate: 0.03
  expense_cap: 2500
  personal_reduction: 24000
  tax_rate: 0.10
  bonus_rate: 0.50
  bonus_cap: 800
steps:
  annual_employee_cass: annual_salary * employee_rate
  work_expense: min(annual_salary * expense_rate, expense_cap)
  net_work: annual_salary - annual_employee_cass - work_expense
  liquid_base: max(0, net_work - personal_reduction)
  gross_tax: liquid_base * tax_rate
  bonus: min(liquid_base * tax_rate * bonus_rate, bonus_cap)
  annual_tax: gross_tax - bonus
  withholding_percent: round(annual_tax / annual_salary * 100, 2)
  monthly_employee_cass: monthly_salary * employee_rate
  monthly_withholding: monthly_salary * withholding_percent / 100
  monthly_net: monthly_salary - monthly_employee_cass - monthly_withholding
  monthly_employer_cass: monthly_salary * employer_rate
  monthly_employer_cost: monthly_salary + monthly_employer_cass
expected:
  annual_employee_cass: 3900
  work_expense: 1800
  net_work: 54300
  liquid_base: 30300
  gross_tax: 3030
  bonus: 800
  annual_tax: 2230
  withholding_percent: 3.72
  monthly_employee_cass: 325
  monthly_withholding: 186
  monthly_net: 4489
  monthly_employer_cass: 775
  monthly_employer_cost: 5775

Self-employed 50% base crosses the July minimum-wage change

An ordinary sole trader has approved 50% eligibility throughout 2026, no special regime or additional health complement and twelve complete contribution months. Half of EUR 2,672.52 is EUR 1,336.26, below both minimum wages, so the applicable bases are EUR 1,525.33 for six months and EUR 1,568.67 for six months. At 22%, monthly quotas rounded to cents are EUR 335.57 and EUR 345.11; the twelve-month total is EUR 4,084.08. This is a statutory base floor, distinct from a 25% contributor's health complement.

oaCopy code
name: Andorra self-employed 50 percent base with July wage floor
inputs:
  reference_wage: 2672.52
  base_fraction: 0.50
  january_minimum: 1525.33
  july_minimum: 1568.67
  contribution_rate: 0.22
  first_months: 6
  second_months: 6
steps:
  raw_base: reference_wage * base_fraction
  first_base: max(raw_base, january_minimum)
  second_base: max(raw_base, july_minimum)
  first_quota: round(first_base * contribution_rate, 2)
  second_quota: round(second_base * contribution_rate, 2)
  annual_quota: first_quota * first_months + second_quota * second_months
expected:
  raw_base: 1336.26
  first_base: 1525.33
  second_base: 1568.67
  first_quota: 335.57
  second_quota: 345.11
  annual_quota: 4084.08

8. Ask the client first

• What are the worker's residence, work locations, legal capacity, other jobs, pension status and social-coverage certificates?
• What are the start/exit dates, hours, fixed/variable cash pay, benefits, reimbursements and absence periods?
• Which employer/worker CASS registrations, approved bases, rate notices, elections and personal-data communications exist?
• For self-employment, what are the prior-year statutory net income, all relevant company turnovers, control/family facts and actual activity dates?
• What gross-to-net records, payslips, declaration/payment receipts and arrears notices need reconciliation?
• Which family, home, pension or treaty facts change the annual tax calculation or authorised withholding?

Sources

Not yet confirmed: the old universal 7%-maximum gross-salary bands, EUR 750 ascendant reduction, salaried CASS ceiling, five-day post-hire grace period, twenty-day separate payroll remittance and blanket EUR 500–10,000 minimum-wage fine have no current primary support and are not applied. Legacy numbered DTF form mappings (300/310/311/312/315/316/317/340/341 and annexes) require the actual current approved form rather than inference from a number; the statutory CASS/non-CASS workflow above is confirmed. No complete current CASS enforcement-interest assessment is calculated from the regulation's partly superseded article 29: use the actual CASS notice and operative enforcement rule, not the tax 4.05% rate. For partial-month health complements, CASS expressly supplies the actual amount. Treaty/foreign social-coverage matrices and precise termination entitlement, food/lodging administrative valuations or special benefits require the actual relevant instrument and worker facts. Individual savings, capital gains and annual relief methods are in ad-income-tax rather than duplicated as payroll deductions. Portal consolidations lack official legal status; retain operative amendment annotations when checking historical periods.

Contributed by Michael Cutajar.

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Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-28. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call get_skill with slug ad-payroll-social on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/ad-payroll-social. If neither is available, confirm every figure against the official source pages cited above before relying on it.