Andorra Sets Minimum Wage at €1,525.33 from January 2026

Andorra's government has set the minimum wage at €1,525.33 per month from January 2026, a 5.4% increase equivalent to double the final 2025 consumer price index of 2.7%.

Minister and government spokesman Guillem Casal announced the figure at a press conference after the weekly Council of Ministers meeting. He described the move as a way to enhance purchasing power for low-wage earners, bringing the minimum to 58% of the prior year's average salary—close to the 60% benchmark in the European Social Charter.

Casal noted an 8% rise in average salaries since 2023, reflecting a robust labor market. He pointed to the "cascade effect" of minimum wage increases, where employers often adjust pay for those just above the threshold to retain staff, as seen in past years. The adjustment fits a positive economic backdrop, supporting workers without burdening companies or low-pay sectors, with plans for continued labor market oversight.

Responding to questions on average salary calculations, Casal argued that all compensation—including overtime beyond 40 hours, contracted or otherwise—counts as real earnings. This approach ensures the 58% ratio reflects the full range of wages in the country.

The 2025 CPI held steady from October, easing slightly from November's 2.8%, and will influence rental contract adjustments. Since 2019, the minimum wage has climbed over 45% from €1,050, surpassing €1,500 for the first time. The monthly amount stems from an €8.80 hourly rate over a 40-hour week, 52 weeks a year, divided by 12.

Recent Statistics Department data showed November's median salary at €2,122.32, up 4.5% year-on-year, with 45,384 salaried workers—a 3.3% rise—and a wage mass of €115.78 million, gaining 7.2%. October preliminaries reported a median of €2,139.95 (up 3.4%) and average of €2,676.55 (up 5.5%), with 44,419 workers and a wage mass of €118.89 million (up 9.4%).