Government to propose doubling CPI-based minimum wage rise to about €1,514

The government will bring a proposal to next Wednesday’s council of ministers to raise the statutory minimum wage by twice the annual consumer price index (CPI), the minister of Presidency, Economy, Enterprise, Labour and Housing, Conxita Marsol, said after a meeting of the Economic and Social Council (CES).

November’s CPI was 2.8%, and the government estimates year‑end inflation at about 2.9–3.0%. Doubling that range would imply a minimum‑wage increase of roughly 5.8–6.0%. Applied to the current monthly minimum of €1,431, that would lift pay to about €1,514–€1,516. Marsol stressed the decision is not final and that December’s inflation — a month that can push the index higher — will be taken into account before the measure is approved.

Employers and unions failed to reach agreement at the CES on a broader wage policy. The main trade union, Unió Sindical d’Andorra (USdA), demanded that the CPI increase be applied to all salaries to offset loss of purchasing power; the Confederació Empresarial Andorrana (CEA) rejected that proposal. The USdA has also reiterated longer‑term calls for a much higher minimum wage, at one point proposing a €2,500 floor, while the public education union said there are insufficient sectoral data to carry out meaningful negotiations.

Given the lack of consensus, the government intends to act only on the minimum wage and leave adjustments for other pay brackets to collective bargaining between employers and unions. Where no agreement is reached, individual firms will decide whether to apply increases.

The CEA warned that wage rises alone cannot resolve housing pressures and cautioned against placing the full burden of adjustment on employers, saying that pushing the minimum above inflation to approach 60% of the average wage would be difficult for many businesses. Marsol acknowledged the potential impact on firms and said the government could consider placing a cap on the increase if inflation were to spike above 7%, a scenario she described as unlikely. She also noted that increases to the minimum tend to exert upward pressure on other wage levels and cited data showing the average wage is rising substantially this year.

The CES meeting also reached agreement on the opening of shops and other establishments on Constitution Day next year, which falls on Saturday, 14 March. Unions and employers accepted that businesses may open that day provided legal compensation for staff is respected: either triple pay for working the holiday or two compensatory days off.