The Government of Andorra has approved an increase in the minimum wage for 2025. Through Decree 4/2025, published in the Official Gazette of the Principality of Andorra, it is established that the minimum wage will increase by 5.2% starting from January 1, 2025.
What will the new minimum wage be in 2025?
With this increase, the hourly minimum wage is set at €8.35, representing a significant rise compared to the previous year. In monthly terms, for a 40-hour workweek, the minimum monthly salary will be €1,447.33.
Why has this increase been approved?
The Andorran Government has taken into account the evolution of the Consumer Price Index (CPI), which recorded a +2.6% variation in 2024. However, the minimum wage increase is 5.2%, exceeding the CPI adjustment to improve workers’ purchasing power in the Principality.
Impact on businesses and employees
This increase will impact labor costs for businesses, making it crucial for employers to review their salary structures and adjust their budgets to comply with the new regulation. For employees, it represents an improvement in their guaranteed minimum compensation.
Conclusion
This new adjustment to the minimum wage reflects the Andorran Government’s commitment to improving working conditions and protecting purchasing power. As a business consultancy, we recommend that companies review their contracts and adjust their salary structures to comply with the new regulations and avoid any potential issues.