Social shock plan to increase salaries and pensions and limit rents

The Government of Andorra has presented an important package of social measures to improve the purchasing power of citizens, limit the rise in rents and increase the amount of pensions from the Caixa Andorrana de la Seguretat Social (CASS) and solidarity pensions.

Thomas Osborne
Thomas Osborne
05 December 2022 Monday 21:42
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Social shock plan to increase salaries and pensions and limit rents

The Government of Andorra has presented an important package of social measures to improve the purchasing power of citizens, limit the rise in rents and increase the amount of pensions from the Caixa Andorrana de la Seguretat Social (CASS) and solidarity pensions. The head of the Government, Xavier Espot, together with the ministers of the Presidency, Economy and Business, Jordi Gallardo, and that of Territory and Housing, Víctor Filloy, was in charge of announcing the new measures.

Xavier Espot pointed out that for weeks the Andorran Executive was seeking a consensus solution with the members that make up the Consell Econòmic i Social (which brings together the most representative business and trade union organizations). "Despite the dialogue, which has allowed us to bring positions closer, it has not been possible to reach an agreement, and for this reason the Government has decided to promote a set of measures that seek to bring together the precepts of both parties in a weighted, balanced and fair manner", Espot stated. The objective of these measures is to increase the purchasing power of citizens, trying to ensure that the rental price does not have a great impact.

Of the three axes of action of the measures (salaries, rents and pensions), the revaluation of emolum ents acquires special importance. The minimum wage will increase by 7% and will be placed at 1,286.13 euros per month. This increase is added to the one already ordered by the Andorran Executive in May 2021, with which the real increase in the minimum wage in the last year stands at 14%.

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The second axis of the package of social measures focuses on rents. The Administration's initiative differentiates between extended contracts and those that are in force. For those extended, the increase in rental income can only be set at a maximum of 5%. In the case of contracts in force, the increase may only reach 2%. Víctor Filloy affirmed that, with this measure, the purchasing power of the most vulnerable families will not be substantially affected, since the increase in rent will always be below the revaluation of wages.

Thirdly, the aid is focused on pensions. As indicated by the head of the Government, both retirement, widowhood and disability pensions below the interprofessional minimum wage – that is, those managed by the CASS – as well as solidarity pensions for the elderly and for people with disabilities, will receive an increase of 7%. “This Government continues to give great importance to the social aspect and the protection of the most disadvantaged people”, stated Xavier Espot.

These measures, aimed at enabling the population as a whole to better cope with the crisis, are in addition to all those that have already been implemented in recent months with the aim of boosting consumption capacity, recovering purchasing power and promoting savings and The sustainability. Both Espot and Gallardo and Filloy highlighted some of the most outstanding measures already underway, such as the one that was recently approved to provide aid of 150 euros for heating consumption, free public transport, the partial refund of taxes on the fuel, the Renova Plan, the extension of rental contracts, the flexibility of the requirements for aid and the creation of subsidized housing.

The head of the Government also indicated that the Executive is aware of the difficult situation the country is going through. “I don't want to settle into a false conformism. We are aware that a large part of the citizenry has purchasing power problems and that there are enormous difficulties in accessing rental housing. We know it, and since we know it, we are carrying out all these actions," added Espot.