Significant Wage Growth Reported
Andorra's median monthly salary reached €2,299.47 in December 2025, representing a notable 6% increase compared to the previous year. These preliminary figures were released by the Govern d'Andorra Departament d'Estadística, highlighting a period of sustained economic growth in the principality.
Beyond the median, the average monthly salary also saw a substantial rise, increasing by 4.8% to stand at €3,276.53. This upward trend in wages is complemented by an expansion in the workforce, with salaried employment growing by 2.1% to a total of 49,375 workers. The overall payroll for the period climbed by 7%, reaching €161.78 million.
Sectoral Performance and Economic Resilience
The growth in salaries and employment was not uniform across all sectors, with some areas experiencing more significant gains. The retail trade excluding motor vehicles sector led the median salary growth, recording an impressive 7.8% increase. This was closely followed by households employing domestic staff, which saw a 7.7% rise in median salaries. Other sectors also contributed positively, with manufacturing and real estate alongside business services both registering average salary gains of 6.1%.
In terms of employment, the utilities sector posted the largest hiring increase at 12.3%, followed by education with a 9.1% growth. Andorra's economy, characterized as a developed and free-market system driven by finance, retail, and tourism, continues to demonstrate resilience and growth above its long-term potential. Inflation is also projected to decline to 2% by the end of 2025, aligning with price developments in neighboring countries.
Broader Wage Landscape and Policy Context
The increase in median and average salaries occurs within a broader context of wage adjustments in Andorra. The minimum interprofessional wage for 2025 was set at €1,447.33 per month, reflecting a 5.2% increase from the previous year. This adjustment is part of an ongoing effort to bring the minimum wage closer to 60% of the average wage, a recommendation put forth by the European Social Charter. Since 2019, the minimum wage in Andorra has increased by 38%, outpacing the Consumer Price Index (CPI) increase of 20% over the same period, indicating a commitment to enhancing workers' purchasing power.
These figures underscore a positive economic environment in Andorra, with both median and average salaries showing robust growth, supported by increasing employment and strategic adjustments to the minimum wage aimed at improving living standards.
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