Andorra Raises Minimum Wage to €1,525.33 from January 2026

Andorra's government has set the minimum wage at €1,525.33 per month effective January 2026, up 5.4% from the previous level after applying twice 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 cabinet meeting. He stressed the executive's aim to boost purchasing power for low earners, positioning the new rate at 58% of last year's average salary—nearing the 60% threshold in the European Social Charter.

Casal pointed to an 8% rise in average salaries since 2023 as a sign of robust labor market health. He argued the adjustment creates a "cascade effect," with employers often lifting pay for workers just above the minimum to retain talent—a pattern seen in prior hikes. The minister added that the increase fits within a positive economic context and supports businesses without disrupting low-wage sectors, as part of ongoing labor market oversight.

Responding to questions on the average salary metric, Casal justified including all worker earnings, even those beyond 40 weekly hours whether contracted or not. These reflect actual income and must count toward the 58% ratio, calculated across the full range of national pay scales, he said.

The finalized CPI dipped slightly from November's 2.8% and has remained unchanged since October. It also guides updates to many rental contracts. Since 2019, the minimum wage has climbed more than 45% from €1,050, surpassing €1,500 for the first time. The hourly rate underpinning the monthly figure stands at €8.80 for a standard 40-hour week.