Page 52 - economic report 2021

2019, reached €965 per month from September 2021, but with 14 yearly payments for a 40-
hour working week (the equivalent of 12 monthly payments of €1,126). For this reason, Andorra
is seeing heavy competition when recruiting workers from its neighbouring country.

Construct on and the The wage trend by sector was diverse in 2021.
manufacturing industries are the On the one hand, there were notable wage
sectors that most raised wages. rises in construction (5.1%), manufacturing
industries (5.1%), extraterritorial bodies (3%),
real estate activities and business services
(2.9%), health and veterinary activities (2.1%) and transport, storage and communications (2.6%).

At the other extreme, wage decreases were seen in Other social activities and community
services (-5.9%), hotels and catering (-0.9%), commerce (-0.8%) and education (-0.2%). In the other
activities, the wage trend was positive but lower than average. In this group, there was a notable
slowdown in wage growth in Public administration (0.1%).

Consequently, in 2020, the difference between sectors remained virtually the same. So, the
highest wage is 3.4 times higher than the lowest wage (as in 2019 and 2020). Specifically, the
highest remunerations are still historically found in the financial sector, where wages are 2.2 times
higher than the average. This level contrasts with that of domestic work for the community which
– with wages 37% below the average – is the worst paid sector. The second sector in the wage
ranks is production and distribution of electricity, gas and water, with wages 55% higher than
the average, followed by extraterritorial bodies – with wages 26% higher than the average - and
public administration – paying 21% more. Note the trend in construction in 2021, in which wages
went to 1% over the average after 11 years of being below, coming close to their relative level
50
before the financial crisis. Among the sectors with below-average wages are notably commerce
and hotels and catering, two sectors that employ a large part of Andorra’s population (31.3% of
total employees), in which the relative position worsened, with wages 15% and 29% lower than
the average, respectively.

Finally, in the wage breakdown by gender, the average wage for women, according to CASS data,
remains below the average wage for men (€1,920 against €2,467), a gap that widened in 2021
to 28.5%. This circumstance occurs in all the sectors, with the sole exception of extraterritorial

The Andorran economy: general developments | VI. Prices and costs
WAGE QUOTIENT MEN/WOMEN BY SECTORS. 2021
Chart 6.4

Source: CASS (Andorran Social Security System) / Department of Stat st cs.