Andorra equates the increase in the minimum wage to the CPI

Andorra equates the increase in the minimum wage to the CPI

The principality has established by decree that the minimum interprofessional wage grows by 7.1% in 2023, the same increase that the consumer price index (CPI) registered last year. The Council of Ministers approved, at the proposal of the Minister of the Presidency, Economy and Business, Jordi Gallardo, said decree with retroactive effect from January 1 of this year. This step repeals the initial minimum wage fixing decree that was approved in November of last year with the aim of ensuring that there is no reduction between the growth of the minimum wage and inflation.

The interprofessional minimum wage stands at 7.42 euros per hour since last January 1, which is equivalent to a monthly amount of 1,286.13 euros. This increase, and also that of the Llindar Econòmic de Cohesió Social (LECS), directly implies an increase in some non-contributory benefits, such as those stipulated for involuntary unemployment, relatives for dependent children, solidarity for people with disabilities, of solidarity with the elderly, non-contributory supplements for old age, disability and widowhood, temporary widowhood pensions and orphan’s pensions. This decision to raise the minimum wage again responds to the Executive’s objective of progressively equating the minimum wage with the real cost of living. Likewise, steps are taken to advance the Council of Europe’s recommendation that the minimum wage be equivalent to 60% of the country’s average wage.

In this sense, the average salary quoted in the Caixa Andorrana de Seguretat Social (CASS) in 2022 rises to 2,284.67 euros, a figure that registered an increase of 5.9% compared to the previous year.

The number of job applicants fell to 370 people, 3.9% less than the previous month

Regarding the behavior of inflation, the groups that have increased the CPI the most have been those related to housing, water, gas, electricity and other fuels, as well as the one that analyzes the prices of food and non-alcoholic beverages -specifically due to the behavior of the prices of milk, cheese, eggs, bread, cereals and sugar–, and finally that which includes the prices of shows, leisure and culture, where there was a rise in the prices of organized trips. The comparison of the CPI with the data from Spain and France, 5.8% and 5.9%, respectively, leaves Andorra in a worse situation, with its 7.1% annual increase.

To complement the data on the employment situation, the monthly data from the Andorran Employment Service indicated, on December 31, 2022, that the total number of applicants seeking employment fell to 370 people, 3.9% less than the month of November and 13.6%, compared to the previous year. Likewise, the total number of jobs offered at the end of 2022 was 2,015, a slightly higher figure (+2.8%) than that of 2021.

This labor x-ray occurs at a time when the resident population increased by 2.6% in 2022, reaching 81,588 people. Andorra la Vella, Canillo and Encamp are the parishes that have assumed the main growth. By nationality, the group in which other nationalities are grouped is the fastest growing, with 1,107 more people (+12.4%), followed by people of Spanish nationality, 500 citizens (+2.5%). The French have grown very little (116 people) and the Portuguese have decreased by 108 people.

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