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Minimum wage in Andorra 2026: how much is it and how it affects your company

By Agora Consultors 

Every year the Government of Andorra updates the minimum wage Andorra 2026 (SMI). For this year, the figure has been set at €1,525.33 per month, an increase of 5.4% compared to 2025. Understanding how the minimum wage Andorra 2026 affects companies, workers, and the self-employed is fundamental to keeping your activity up to date and complying with current regulations.

What does the minimum wage Andorra 2026 imply?

The SMI for 2026 is €1,525.33 gross per month (approximately €8.80/hour), for a full-time working week of 40 hours. This amount was approved by Decree 8/2026 and is mandatory from January 1, 2026.

Evolution of the SMI and European objectives

In recent years, the evolution has been constantly rising:

  • 2024: €1,376.27/month
  • 2025: €1,447.33/month
  • 2026: €1,525.33/month (+5.4%). The Government’s objective is to bring the minimum wage closer to 60% of the average wage, following the recommendations of the European Social Charter.

How it affects companies and the self-employed

Every company with workers in Andorra must adapt its payrolls to the new amount. In addition to the salary, it is necessary to recalculate the CASS contributions, which are calculated on the gross salary. If you have part-time workers, remember that the SMI is prorated according to the hours.

Likewise, the minimum wage is the basis for many calculations: social security contributions for the self-employed, the thresholds for some immigration permits, and the solvency required for passive residence (300% of the annual SMI). Therefore, being well-informed about the minimum wage Andorra 2026 is vital.

Do you need help managing your payrolls?

At Àgora Consultors we are experts in labor management and advisory in Andorra. We ensure that your payrolls and contributions are always updated and in order. Contact us without obligation and avoid unnecessary problems.

We are at your disposal for any further questions.

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