The Government of Andorra has officially announced the increase in the Interprofessional Minimum Wage (SMI) for the year 2026, which is already in force. The increase amounts to 5.4%, double the variation of the Consumer Price Index (CPI) for 2025, which stood at 2.7%, according to data published by the country’s official statistics.
With this update, the new minimum wage is set at 1,525.33.-eur per month for a full-time working schedule of 40 hours per week, equivalent to 8.80.-eur per hour. This figure clearly exceeds the 1,500.-eur monthly threshold and consolidates a trend of sustained growth in the minimum wage observed in recent years.
Why is this increase relevant?
The increase has been calculated by applying twice the official CPI for 2025, in accordance with the mechanism established by current regulations. The main objective of this formula is to prevent the lowest wages from losing purchasing power in the face of rising living costs, thereby ensuring effective protection for workers with lower incomes.
This rise clearly exceeds the increase in the CPI, which has remained at 2.7%, and highlights the Government’s intention to strengthen minimum wages beyond a simple inflation adjustment, opting instead for a real improvement in workers’ economic conditions.
Context and recent developments
Since 2019, the minimum wage in Andorra has followed a clearly upward trajectory, with repeated increases above inflation. During this period, the SMI has risen from around 1,050.-eur per month to over 1,500.-eur, representing a cumulative increase of between 45% and 50%.
This trajectory forms part of a social policy aimed at bringing the minimum wage closer to 60% of the national average wage, as recommended by the European Social Charter. The latest data indicate that the minimum wage now stands at around 58% of the average wage, an indicator that reflects significant progress towards a more balanced wage model aligned with European standards.