Andorra Approves 5.4% Rise in Employment Subsidies Amid Record-Low Unemployment
Government boosts subsidies for hiring vulnerable groups, youth, and long-term unemployed, aligning with minimum wage hike as jobless claims hit.
Key Points
- 5.4% subsidy increase matches minimum wage adjustment; unemployment at historic low of 238.
- 2025: Supported 38 companies hiring 82 people (48 private, 34 public); 33% private hires from vulnerable groups.
- Private sector: €371/month first 6 months, €557 next 6 for indefinite; €500 bonus for multiples.
- Prioritises 16-25s, 45-65s long-term unemployed, disabled, vulnerable; new public options like reduced hours.
The Andorran government has approved a 5.4% rise in subsidies for employment promotion programmes, aligning the increase with the minimum interprofessional wage adjustment, as unemployment remains at a historic low of 238 people registered with the Andorra Employment Service.
The programmes, put forward by Minister of the Presidency, Economy, Labour and Housing Conxita Marsol, target hiring in the private sector, public-sector and social initiatives for employability, and job placement with practical training for young people. In 2025, they supported 38 companies in hiring 82 individuals—48 in the private sector and 34 in the public sector—with nine private firms employing more than one worker each. Among private-sector hires, 33% came from vulnerable groups, a figure that reached 82% in the public sector.
Government spokesperson Guillem Casal detailed the 2026 private-sector programme following the Council of Ministers meeting. It continues to prioritise 16- to 25-year-olds, 45- to 65-year-olds who are long-term unemployed or receiving involuntary unemployment benefits, and people with disabilities or in vulnerable situations. Subsidies offer €371 per month for the first six months of a fixed-term contract and €557 per month for the next six months of an indefinite contract, for a total of €5,568 per hire. Firms that complete both phases and hire multiple target-group members qualify for an extra €500 bonus.
The public-sector and social employability programme keeps its emphasis on people with disabilities, those in vulnerable situations, long-term unemployed individuals (over 12 months), 60- to 65-year-olds, and recipients of involuntary unemployment aid. For 2026, it adds options such as reduced working hours for the 60-65 age group, rehiring within the same department after 15 months, and online applications through the electronic headquarters.
A separate initiative aids active 16- to 25-year-olds who have finished socio-labour inclusion training, providing an initial six-month contract that can convert to indefinite status and includes on-the-job training. Casal noted that the model follows the established annual pattern with these updates.
Original Sources
This article was aggregated from the following Catalan-language sources: