Andorra Union Demands Wage Hikes and Housing Aid to Halt Worker Exodus

The Unió Sindical d'Andorra (USdA) has demanded structural wage increases and permanent adjustment mechanisms tied to real living costs, along with housing measures to stem the exodus of workers unable to afford life in the Principat.

In a statement, the union warned that relentless rises in rents, food prices, and basic services have eroded purchasing power, particularly for middle-income families. Many Andorran households now register residency in neighboring towns because local costs are prohibitive, a pattern the USdA called a "structural imbalance" endangering social cohesion and the country's demographic future. Young people struggle to leave home due to high rents, while older workers and those nearing retirement fear pensions will prove inadequate.

Public sector pay scales have seen no comprehensive update since 2002 across parishes, despite isolated actions like Escaldes-Engordany's 10% flat increase or targeted changes in Sant Julià de Lòria. The union urged local councils, as frontline public institutions, to pioneer full reviews and set an example.

The USdA deemed the 2026 minimum wage rise to 1,525.33 euros monthly—above official inflation—insufficient to secure stable lives, especially with housing eating into budgets. The planned rent thaw from 2027, permitting annual hikes up to 6% plus inflation in certain instances, could intensify pressures, as some families already share homes to cope.

The demands encompass real wage hikes, ongoing links to economic realities, anti-precariousness housing policies, and firm social dialogue outcomes to ensure workers can reside where they labor. Without them, the union cautioned, Andorra risks entrenching economic dependence and forced cohabitation.