Andorra PS Proposes 10 Amendments for Indexed Wages and Pensions in 2026 Budget

The Social Democratic Party (PS) opposition has tabled ten amendments to Andorra's 2026 budget bill, prioritising annual indexing of public sector salaries and the minimum wage to the consumer price index (IPC) as a structural safeguard against eroding purchasing power.

PS councillors Pere Baró and Laia Moliné unveiled the measures at a Consell General press conference, framing them as targeted reallocations to prioritise citizens' needs, public services, and social cohesion over a purely economic focus. Baró stressed the need for a stable mechanism to prevent wages from lagging behind living costs, warning that limiting raises to the minimum wage alone risks concentrating more workers at that level. Moliné described the package as offering "a clear alternative to the government's budget: a fairer, more social one with a balanced country model."

Central to the proposals is a tiered pension adjustment linked to the minimum wage and IPC: pensions below the minimum wage would rise by double the IPC; those between one and two minimum wages by the full IPC; up to three minimum wages by half the IPC; and higher amounts by 25% of the IPC. This ensures "no pensioner loses purchasing power," Baró said, adding that "living costs have risen for everyone, making it unfair to leave any pension unchanged."

For public employees, the amendments would grant up to two triennis to interim staff who became civil servants after the Public Function Law took effect, particularly those with over six years' service who secured posts between February 2019 and 2020. New pay scales would also apply to retired and pre-retired workers excluded from earlier deals.

To bolster unions, the PS requests €100,000 in public funding—redirected from economic promotion budgets—to enhance social dialogue, which Moliné called "an investment, not an expense," amid criticisms that current processes fail to yield wage pacts.

Other shifts include transferring €24 million from Andorra Turisme to the tourism ministry for greater political oversight; retaining Andorra Telecom capital transfers within the company to cut tariffs for families and small businesses; and reallocating cultural funds, including the €460,000 for Fundació Museu Andorra, to museums, heritage, outreach, strategic projects, and the National Library.

Youth initiatives propose a comprehensive study on extending the Planet Youth addiction prevention programme through 2026–2031, evaluating methodology, resources, coordination, and metrics. Funding for a 2026 EU Association Agreement referendum would come via €81,000 reallocated from the head of government's special relations staff, securing around €83,000 for elections.

The budget remains under review, with no government reply yet.