Minimum wage in Andorra (SMI) for 2023

Yes, in Andorra there is also a minimum interprofessional salary, also called SMI. The minimum wage is set periodically at least once a year by the Andorran Government. But what is this decreed minimum wage?

What is the interprofessional minimum wage or SMI

Dating back to 19th century Australia and New Zealand, minimum wage legislation typifies a minimum wage amount that must be paid to a worker within a given jurisdiction through a specific law for this, whether monthly, daily or hourly. This law obliges the employer to pay at least said amount to all its registered workers.

​As each country or region usually establishes its own legal standards regulating the minimum wage and the way to control its compliance, in this article we are going to write the one corresponding to Andorra.

Minimum wage legislation in Andorra

In Andorra, the relationship between employer and employee is established in Law 31/2018 on labor relations. This law indicates that "The fixed salary cannot be less than the base salary established by the collective agreement for each professional group, and in the absence of a collective agreement or if this issue is not regulated, the interprofessional minimum wage".

This interprofessional minimum wage is regulated in article 73 of this same legislation, according to which "it is the remuneration that the company must obligatorily pay to the salaried person in all cases, even in contracts in which a salary per unit of work or a mixed salary has been agreed".

On the other hand, it is established that "the Government will periodically set, at least once a year, the minimum interprofessional salary". This is done through decrees published in the BOPA (Official Gazette of the Principality of Andorra) published approximately in mid-November of the previous year.

In this way, any salaried person over the age of 15 must be remunerated with the salary established by said decrees. In addition, minors who are 15 years old cannot carry out any work activity during the school period and can only work during school vacation periods up to a maximum of two months per calendar year, provided they enjoy at least one month of vacation. school in the summer and half of the school holidays during the rest of the year.

Minimum wage in Andorra in 2023

It has recently come out Decree 498/2022, of 11-30-2022, setting the interprofessional hourly minimum wage for the year 2023 in Andorra, according to which the minimum interprofessional salary setting table is established for said year. It has been published on December 7, 2022 and implies an increase in the minimum wage of 7% compared to the previous year. This is the minimum wage to apply from January 1, 2023:

This minimum wage continues to be approximately consistent with what we concluded was the minimum necessary to live in Andorra according to the cost of living of the country itself. We hope that the article has been of interest to you, thank you very much for your attention. You can read more about the minimum wage each year in the CASS page (Andorran Social Security Fund).