How much is the minimum wage in Andorra in 2026
The Government sets the interprofessional minimum wage at least once a year by decree published in the BOPA. In January 2026 the hourly minimum wage for the year was set, and in July an extraordinary 2.8% increase was approved due to the rise in the cost of living.
From 1 July 2026, the minimum wage is €1,568.67 per month for the ordinary legal working day, equivalent to €9.05 per hour (previously €8.80). The monthly wage is calculated by multiplying the hourly wage by 40 hours and 52 weeks and dividing by 12 months.
The minimum wage applies to all salaried employees, including those on contracts by unit of work or mixed salary, under article 73 of Law 31/2018 on labour relations.
What the company pays on top: CASS and other costs
On top of that gross wage, the company pays the employer's CASS contribution, Andorra's social security. In total, 22% of the wage is contributed: 6.5% by the worker (3% general branch and 3.5% retirement) and 15.5% by the company, rates noticeably lower than those in Spain or France.
The Andorran minimum wage is effectively free of personal income tax: income tax is progressive with a maximum rate of 10% and the exempt minimum absorbs these low incomes.
Practical result: a minimum wage of €1,568.67 gross leaves the worker around €1,466 net per month, more than is left in Spain with a minimum wage of €1,221 gross.
Comparison with Spain and neighbouring countries
The Andorran minimum wage is approximately 28% higher than the Spanish one (€1,568.67 versus €1,221 per month in 14 payments) and also exceeds Portugal's €920.
The difference is more noticeable in net terms because Andorra combines low contributions with a maximum personal income tax of 10%, compared with Spain's 47% marginal rate. For a company setting up a subsidiary and relocating staff, that structure significantly reduces the labour cost of each employee.
What to review before hiring in Andorra
The July 2026 increase makes it necessary to review all pay below the new scale, especially older contracts and collective agreements that carry over previous minimum wages.
Bear in mind also that each sector's collective agreement may set base wages above the legal minimum for each professional group. The fixed salary cannot be lower than the base salary of the applicable agreement.
Minimum wage and part-time work
For part-time contracts, the minimum wage is prorated according to the agreed working hours. The calculation is based on the hourly wage of 9.05 euros, so an employee at 50% must earn at least 784.34 euros per month.
Andorran law does not allow paying below the minimum under any circumstances, including apprenticeship or socio-occupational inclusion contracts, although these may have special Social Security contribution conditions.
