Minimum Wage in Andorra is at a decent level compared to some countries. A person who is a citizen of Andorra usually receives a salary of about 3,800 EUR per month. Salaries vary between 1,157 EUR and 16,500 EUR. Minimum wages in Andorra are higher than the minimum wage in Spain. This is because Andorrans are entitled to one extra day off on national and parish holidays, and are paid double for the same amount of hours worked. However, this day cannot be changed. Therefore, it is important to understand the laws and benefits before signing up for a job. Here are some important details. Also, know the Unemployment Rate.
Cost of Living in Andorra
The average cost of a basket of goods in Andorra is less than half of that in New York City. Gasoline / petrol is sold at an average price of USD 1.24 per liter. A benchmark car sedan costs USD 19,411 when taxes and duties are included. Although the cost of living in Andorra is very high, it is still far cheaper than many other places in Europe.
Andorra is an extremely safe country to live in, with two main roads out of the country and a police force that patrols the borders. Because there is no airport, residents often leave their cars running while on vacation. Andorra’s tax system is not as complicated as other countries. Andorra is not known as a tax haven, but there is very little to worry about, making it a great place to live.
Unemployment Rate in Andorra
In terms of unemployment rate, Andorra is one of the lowest in the world. The country has a low unemployment rate of around 3%. Unemployment is lower than the global average, ranging between 5% and 10%. The country has a low tax rate, and its working hours are relatively relaxed. The average working week is 40 hours, and people are required to take breaks of 30 minutes every six hours. The country’s maximum annual working hours are 1800 hours.
While the Andorran government is keen to attract foreign investment, the unemployment rate remains relatively low, at 2.1%. The country has a high life expectancy, with an average of 82 years of age. Its education system is trilingual and its urban environment is safe. However, a recent economic crisis led to higher unemployment. The Covid-19 pandemic, which led to a 12% increase in deaths in Europe, is to blame for Andorra’s unemployment rate. Andorra’s unemployment rate was at its highest level in ten years by the third quarter of 2021, and the unemployment rate is now at 2.1% for people over 15 years old. The government’s wage support scheme is only supporting a fraction of the labour force.
According to the Minister of Presidency, Economy and Enterprise, Jordi Gallardo, the minimum wage in Andorra should increase by 3.5% between 2020 and 2021. This is significant considering the consequences of the coronavirus. Andorrans will also benefit from one extra day off each year during traditional national and parish holidays. However, this day off cannot be moved. Those who work for a living will benefit from the increase, as will those who are self-employed.
While Andorrans enjoy lower rents than in many other European countries, utilities and food are not cheap. Even if they are inexpensive, a basic apartment with utilities will cost around EUR150 per month. Fortunately, clothing prices in Andorra are much lower than in other European countries. You can buy a good pair of designer jeans for USD50. On the other hand, a gallon of gasoline costs around USD0.5.
Taxes in Andorra
The government of Andorra has been emphatic in informing its citizens and unions about the proposed economic measures. For starters, they have increased the minimum wage by 3.2%, according to the CPI (Consumer Price Index). This increase is expected to benefit around 3,000 people. This increase will also be reflected in social benefits and retirement income for people working in the local economy for at least 25 years.
The tax rate has decreased slightly for food, water, libraries, archives, museums, and cultural institutions. It has increased to 10.5% for banks and other financial services. However, first-year taxpayers will get a reduction of 50% of the settlement fee. The rate will be 10% for the rest of the tax base. The minimum wage in Andorra is around €18,000, which is considerably higher than the average in most European countries.