Page 51 - Economic report 2020

Box 6.1
LAW 17/2022, OF 9 JUNE, ON MEASURES TO IMPROVE CITIZENS’ PURCHASING POWER

This Law proposes establishing certain measures within Modification of the indirect tax rate applied to
the financial and social fields to help improve citizens’ certain products relating to feminine hygiene and
purchasing power. Among the measures are notably: baby care, so they come under the reduced tax rate.

Obliging businesses to raise, by at least 3.3%, wages Regarding energy self-consumption, elimination of
that are below €27,130.44 per year and which have the limitation on producing electricity at the source
not been raised by this percentage in the last twelve of consumption. So, the Government is authorised
months and are not new employment contracts to pass regulations to develop the figure of
signed in the last twelve months. producer-consumer, the permitted territorial scope
of self-consumption and the necessary aspects for
A 3.67% increase to contributory retirement effective implementation of the measure.
pensions, widows’ pensions and disability allowances
deriving from a non-occupational accident or Postponement of compliance with the obligation
common illness, and disability allowances deriving to file annual accounts with the Accounts Registry
from an occupational accident or professional until the financial year starting in January 2023,
illness from 1 June 2022, for those who receive a to temporarily ease the legal requirements for
monthly pension/allowance that is below the CASS businesses other than joint stock or limited
interprofessional minimum wage, and who can companies that have an annual income of less than
show a minimum contribution period of 25 years. €150,000.

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Wages accelerate but grow below
inflation for the second consecutive year. AVERAGE WAGES AND INFLATION Chart 6.3
Interannual variation rate (%)

The data from the Workforce Survey reflect
a wage dynamic that is lower than the one
shown by CASS data, with an increase in the
average monthly wages of employees of 3.6%,
to €2,229 gross. According to this source, in
2022, about 21% of private sector employees
earned more than €2,534 gross, a percentage
that rises to 38.5% in the case of the public and
semi-public sector. In contrast, this is inverted
in the case of the lowest wages (below €1,611), Inflation Average wages
which are concentrated in the private sector
(39.3% of the total) more than the public Source: CASS (Andorran Social Security System) / Department of Statistics.
sector (20.9%). The Survey also shows that the
average wages of employees increases with age to reach a maximum in the 45-54 age bracket, Andorran economy: general developments | VI. Prices and costs
while tending to decrease in older brackets.

In the case of the minimum interprofessional wage, this was raised again in 2022, for the seventh
consecutive year, in this case by 7.1%, much more than the average wage, as in the previous
three years. Consequently, the minimum hourly wage rose to €6.93 (for workers aged 18 and
over), the equivalent of €1,201.20 per month for a 40-hour week. The increases over the last
few years meet the commitment for the minimum wage to be half of the average wage which,