Minimum wage in Andorra: €9.05 an hour since 1 July 2026

Minimum wage 2026: €8.80, then €9.05 an hour

On 1 July 2026, the Govern adopted Decree 253/2026, which amends Decree 8/2026 of 14 January 2026 setting the national minimum wage (SMI) for 2026. Published in BOPA No. 77 of 8 July 2026, it has applied since 1 July 2026 to every employee aged 15 or over, according to the labour inspectorate’s circular distributed by the CASS. The minimum wage was €8.35 an hour in 2025 and €7.94 in 2024.

Gross amounts, 40 hours a week. 2024: Decree 577/2023, BOPA No. 156 of 27 December 2023. 2025: Decree 4/2025, BOPA No. 6 of 16 January 2025. January 2026: Decree 8/2026, BOPA No. 3 of 14 January 2026. July 2026: Decree 253/2026, BOPA No. 77 of 8 July 2026. Based on the labour inspectorate circulars published by the CASS.

The July increase represents €0.25 an hour and €43.34 a month, i.e. about 2.8% (indicative calculation: difference between the two monthly amounts, divided by the January amount). From 2024 to July 2026, the hourly wage rose by about 14% (indicative calculation: €9.05 compared with €7.94). The circular also gives the daily wage, €72.40 for 8 hours, and restates the reference working week of 40 hours and the annual leave: 30 calendar days or 22 working days.

Gross and net minimum wage: how much does an employee receive?

On the minimum wage, a full-time employee has received about €1,466.71 net a month since 1 July 2026, for €1,568.67 gross. The only deduction is their contribution to the CASS, 6.5% of the gross salary, which the employer deducts from pay; the employer pays a further 15.5%. At this level of income, and with no other income, no income tax is due: the taxable base remains below the tax-free personal allowance of €24,000 a year.

Indicative calculation: net = gross less the 6.5% employee contribution to the CASS; annual = monthly amount × 12, excluding any bonuses. No income tax at this level for a person with no other income.

For the whole of 2026, with six months at €1,525.33 and six months at €1,568.67, the minimum wage comes to €18,564 gross (indicative calculation). To go from gross to net at other salary levels, see the examples in our guide from gross to net salary in Andorra.

Andorra or France: which minimum wage?

Per hour, the Andorran minimum wage is markedly lower than the French Smic: €9.05 against €12.31 gross. But it is calculated on 40 hours a week, against 35 in France. Per month, the gap therefore narrows to €1,568.67 against €1,867.02 gross, and the net amounts, after the employee’s social security contributions, are almost equal.

Andorra: Decree 253/2026; net and annual amounts as an indicative calculation (CASS contribution of 6.5%, 12 months). France: ministerial order of 22 May 2026, amounts applicable since 1 June 2026 according to Service-public, net given as an indication after employee contributions. Indicative calculation: the Andorran hourly wage represents 73.5% of the French one, the gross monthly wage 84% and the net monthly wage about 99%.

This comparison does not measure the standard of living: prices, rents and tax differ from one country to the other. The differences in spending are detailed in our guide to the cost of living in Andorra and France, and income tax in the two countries can be compared with our France⁠–⁠Andorra tax comparison tool.

Who is affected?

First, employees paid the minimum and their employers; to put this amount in context, see the average salary in Andorra and the job market. But the minimum wage also serves as a unit of measurement for other rules, which each increase shifts without any further text:

• the resources required for certain residence permits;
• the contribution bases of certain self-employed people;
• thresholds for income tax and property transfer tax.

Passive residency: higher minimum resources

For passive residency, the regulation requires resources of more than 300% of the annual minimum wage for the holder, plus 100% per dependant. The July increase therefore raises these thresholds:

Indicative calculation: monthly minimum wage × 12 × 3 for the holder, plus one year’s minimum wage per dependant, the method described in the e-tràmits information sheet for renewal.

The other residence permits without work that refer to the same resource conditions, such as that of professionals with international reach, follow the same trend. The details of the status are in our guide to the conditions for passive residency in Andorra.

Contributions: what changes for the self-employed

Self-employed contributions are calculated on a base expressed as a percentage of the previous year’s average wage (€2,672.52 for 2026), not of the minimum wage. The minimum wage does, however, come into play in three places:

All the bases are detailed in our guide to CASS contributions in Andorra.

Tax and property purchase: indexed thresholds

• Income tax: the reduction of €1,000 per child under 25 or per ascendant over 65 requires, among other things, that their income does not exceed the annual minimum wage.
• Property transfer tax: the ITP exemption for a first home is reserved for buyers whose income remains below 4 times the annualised minimum wage (6 times if there are several of them), i.e. about €75,300 and €112,900 a year with the July amount (indicative calculation).

To estimate your income tax, use our tax calculator.

Minimum wage 2027: what we know

The 2027 amount is not known at 11 October 2026: the minimum wage is set each year by a Govern decree, published in the BOPA. The latest were adopted in mid-January (Decree 4/2025 of 15 January 2025, Decree 8/2026 of 14 January 2026), the one for 2024 as early as December 2023, and 2026 saw a second increase on 1 July. The thresholds that depend on it will move with it, and the calculations on this page will have to be redone. The average wage that serves as the base for self-employed contributions is, for its part, a different amount, revised every year.