Unemployment in Andorra

Unemployment assistance for involuntary unemployment (ajut per desocupació involuntària) is a formal form of social assistance in Andorra for people who have become involuntarily unemployed and whose own and family resources are insufficient. It does not replace contribution-based unemployment insurance. The Government or the Ministry of Social Affairs administers and pays the benefit. The Employment Service (Servei d’Ocupació) is responsible for registration, placement, activation, counselling, training and monitoring compliance with obligations. The Procedures Service (Servei de Tràmits) accepts applications, while the Andorran Social Security Fund (Caixa Andorrana de Seguretat Social) — abbreviated CASS — verifies insurance data and contributions. Andorran nationals and foreigners lawfully resident on a permanent basis may register with the Servei d’Ocupació as jobseekers. When applying and throughout the payment period, they must retain their lawful, actual and permanent residence in Andorra. The documents usually include the registration form, information about professional experience, a CV, diplomas and, where applicable, driving licences or professional licences. After registration, contact must be made within 48 working hours; an appointment is required. The current office of the Servei d’Ocupació is located in the Edifici Les Columnes, Avinguda Tarragona 58–62, ground floor, in Andorra la Vella. The benefit requires, among other things, that the unemployed person was previously employed as a worker, has not yet reached the regular retirement age, does not receive an incompatible pension and lost the job no more than six months earlier. The job loss must have occurred against the person’s will; the person must want to work and be fit for work. Voluntary resignation without a recognised reason and termination by mutual agreement exclude the benefit. In the case of dismissal for disciplinary reasons, a legal challenge is required. If the dismissal is finally confirmed as justified, the benefit ends, and periods already paid without entitlement may adversely affect later expectations of support. The administration also examines household income and assets and whether another benefit with the same purpose is already being received. A residence permit for family reunification usually excludes financial assistance; an exception may apply in the event of unforeseen need. Access also requires meeting CASS conditions. People aged 26 or older need at least 36 contribution months within the last 60 months; people aged 25 or younger need at least 18 contribution months. Registration with the Servei d’Ocupació must have taken place at least 45 days before the application, or 90 days must have passed since the event triggering the claim. Compensation paid on termination of employment extends the relevant period by half the number of compensated days, up to a maximum of 120 days. The benefit is based on the official minimum wage (SMI). Since 1 July 2026, this has been one thousand five hundred sixty-eight euros and sixty-seven cents per month, or nine euros and five cents per hour. The payment may not exceed the applicable personal or family LECS thresholds for sufficient means (LECS). For a couple, the family threshold increases by 70%; for two people entitled to an old-age pension, it increases by 80%. For an additional family member, the increase is 50% for children under 14 and 70% for older members. Single parents receive a 20% supplement, and recognised disabilities increase the threshold by 20% each. During support, general CASS and pension insurance remain in force; the person’s own contribution is deducted from the benefit. After a positive decision, the Servei d’Ocupació concludes a written individual activation agreement (Acord d’activació) with the eligible person. Support initially begins for six months and may be extended by no more than three months if the person is at least 50 years old or lives with dependent relatives who are indirectly insured. The extension application must be submitted within the 30 days before expiry. After a diagnostic interview, the Servei d’Ocupació prepares a personal return-to-work plan and appoints a counsellor. During payment, the person must actively seek work, accept a suitable job offer, participate in agreed counselling, training, employment or retraining measures, report changes to their CV or employment status and attend meetings with the Servei d’Ocupació or employers. In the event of medical incapacity, a certificate from an authorised doctor in Andorra must be submitted within 72 hours. At least 80% of appointments for training measures must be attended. An offer is considered suitable if it pays the rate for the relevant category and at least the SMI after transport costs are deducted when the workplace is more than ten kilometres away. The work should correspond to the desired or previous occupation and to the person’s physical and professional suitability; the last occupation also counts as a reference if it lasted at least three months. A person without their own vehicle may accept an offer if the employer provides transport or national public transport makes the route possible. The workplace may be no more than 20 kilometres away. Payment begins on the first day of the month after the application or after the complete documents have been submitted. The general decision should be issued no later than two months after a complete application. If documents are missing, the administration allows ten working days for correction. When starting a new job, the person must inform the Servei d’Ocupació within no more than ten days. Support may then be suspended for up to six consecutive months. Participation in an employment programme may also trigger a suspension of up to six months, after which support may resume. It ends, among other circumstances, upon paid employment, more than one refusal of a suitable offer, refusal of a training or activation measure, an incompatible pension or retirement, loss of residence or work authorisation, a six-month suspension, attendance below 80% or a serious breach of labour law. After the benefit has been exhausted or has ended, a new application is possible only when the conditions are met again and the person has worked for at least twelve months during the preceding 24 months. Registered jobseekers who do not receive this assistance may, under certain conditions, voluntarily join a special CASS scheme. The requirements include being aged 18 to 65, having lived continuously in Andorra for at least three years and being registered with the Servei d’Ocupació. Anyone over 35 additionally needs 36 months of previous Andorran contributions. The insured person pays ten percent of the full SMI in the general insurance branch; at the SMI applicable from July 2026, this is approximately 156.87 euros per month. The pension branch is not part of this scheme, although family members may be co-insured. After employment ends, CASS may also reimburse healthcare costs for registered jobseekers for a maximum of 60 days when they have fewer than six contribution months, 90 days with six to 36 months, and 120 days with more than 36 months, provided residence is maintained. For returning to work, the Servei d’Ocupació provides information and registration, career counselling, support for self-employment and business creation, training opportunities and job placement. The 2026 private employment programmes are aimed, among others, at people aged 16 to 25, people over 45 and under 65, long-term unemployed people who have been without work for more than six months, benefit recipients and people with disabilities or special protection needs. In these programmes, an initially six-month fixed-term contract may become an indefinite employment relationship. The public integration programme covers people with disabilities or special protection needs, long-term unemployed people who have been without work for more than twelve months, people aged 60 to under 65 and benefit recipients after 60 days. Contracts in that programme last no more than six months and are remunerated at the SMI plus the employers’ CASS contributions. An employment programme and the ajut per desocupació involuntària cannot be received at the same time. In February 2026, 238 jobseekers were registered with the Servei d’Ocupació. For 2025, 33 positive decisions on support were reported, involving a total of 198,182.05 euros; the average period of receipt was three months and the average total amount per user was 6,005.52 euros. In 2025, employment programmes helped 82 unemployed people return to work, including 48 through private programmes and 34 through public programmes.