Minimum Wage in Andorra: Rates, Trends & Compliance

How Does Minimum Wage Apply to Different Workers In Andorra?

In Andorra, the minimum wage applies uniformly across different worker types under the Labour Code. The 2026 figures are EUR 8.80 per hour and EUR 1,525.33 per month, with no pending updates announced.

Full-Time Employee Wages

Full-time employees are entitled to the minimum wage of EUR 8.80 per hour. While industry collective agreements could set higher floors, none are currently known in Andorra. For example, a full-time employee working 160 hours a month would earn EUR 1,408.

Part-Time Employee Wages

Part-time wages are calculated proportionally based on hours worked. Under Andorran law, the formula is straightforward: hourly rate multiplied by hours worked. For instance, a part-time employee working 80 hours a month would earn EUR 704.

Interns and Trainees

Interns and trainees are generally entitled to the minimum wage unless specific training agreements provide otherwise. Any exceptions require formal approval from the Inspecció de Treball. Employers must register these agreements to ensure compliance.

Domestic Workers

Domestic workers fall under the standard minimum wage framework in Andorra. There are no separate laws governing their wages, ensuring they receive at least the statutory minimum.

Expats

Expatriates in Andorra are subject to the same minimum wage laws as local workers. Work permits often reference wage floors to ensure compliance with national standards. No specific bilateral agreements alter these requirements.

Minimum Wage for Top Paying Roles In Andorra

While the statutory minimum wage sets the legal floor, market rates for skilled roles in Andorra reflect demand and scarcity. Key sectors like finance and tourism drive high salaries.

• Financial Analyst: EUR 50,000 - EUR 70,000 (USD 55,000 - USD 77,000). High demand in Andorra's growing financial sector.
• Software Developer: EUR 45,000 - EUR 65,000 (USD 49,500 - USD 71,500). Scarcity of skilled developers in the tech industry.
• Hotel Manager: EUR 40,000 - EUR 60,000 (USD 44,000 - USD 66,000). Key role in Andorra's tourism-driven economy.
• Marketing Director: EUR 55,000 - EUR 75,000 (USD 60,500 - USD 82,500). Essential for promoting Andorra's luxury goods sector.
• Legal Advisor: EUR 60,000 - EUR 80,000 (USD 66,000 - USD 88,000). High pay due to complex regulatory environment.
• Pharmaceutical Sales Manager: EUR 50,000 - EUR 70,000 (USD 55,000 - USD 77,000). Growing demand in health and wellness sectors.
• Real Estate Agent: EUR 40,000 - EUR 60,000 (USD 44,000 - USD 66,000). High commissions in Andorra's property market.

Penalties for Non-Compliance with Minimum Wage Laws in Andorra

The Inspecció de Treball enforces minimum wage compliance in Andorra. Inspections can be triggered by employee complaints, random audits, or sector-specific sweeps. Fines for non-compliance range from EUR 500 to EUR 10,000 per violation, and criminal prosecution is possible for severe breaches.

Back-pay claims can go back up to five years, allowing employees to recover unpaid wages. Company directors may face personal liability under specific provisions of the Labour Code. Playroll helps employers stay compliant by offering expert guidance on Andorran wage laws.

Factors Influencing Minimum Wage in Andorra

In 2026, economic factors such as inflation and cost-of-living adjustments significantly influence minimum wage decisions in Andorra. The country's favourable tax regime and economic integration efforts also play a role.

Industry-Specific Variations

Industries like finance and tourism often have higher wage thresholds due to skill demands and economic importance. Market rates in these sectors can far exceed the minimum, impacting compliance strategies for employers.

Economic Conditions

Andorra's inflation rate, which was 2.5% in 2025, has influenced the minimum wage trajectory. The country uses a formal indexation mechanism to adjust wages in line with economic conditions.

Government Policies and Legislation

The minimum wage in Andorra is governed by Decree No. 8/2026. Recent regulatory changes have focused on aligning with EU standards, and employers should monitor these developments closely.

Tax Implications of Minimum Wage

Minimum wage earners in Andorra fall within the 10% corporate income tax bracket, with no specific exemptions for low earners. However, certain credits may apply depending on individual circumstances.

Employers must contribute 15.5% of gross salary to Social Security (CASS). These contributions stack on top of the headline wage, increasing the total employment cost. Contribution rates remain constant regardless of wage increases.

Minimum Wage History and Trends in Andorra

Over the past decade, Andorra's minimum wage has steadily increased from EUR 7.50 per hour in 2016 to EUR 8.80 per hour in 2026. This trajectory reflects ongoing economic adjustments and policy shifts.

The most recent change in 2026 raised the minimum wage from EUR 8.35 to EUR 8.80 per hour, driven by inflation and cost-of-living reviews. This change was implemented smoothly, with clear guidelines from the Govern d'Andorra.

Looking forward, no specific future increases have been announced, but economic indicators suggest potential adjustments. Employers should stay informed to anticipate payroll changes.

How To Stay Compliant When Hiring in Andorra With Playroll

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• Meet minimum wage requirements: Our built-in compliance checks and vetted contracts mean your agreements will always meet all legal requirements for statutory benefits, minimum wage, and more.