Colombia could increase the minimum wage by 11 % in 2026

In 2026, workers in Colombia could receive an 11 % wage increase, according to current discussions being held by the Ministry of Labor with other relevant authorities.

It is estimated that next year, the current Legal Monthly Minimum Wage (SMMLV in Spanish) will rise “to double digits, reaching almost 3 million pesos with contributions,” despite “alarming business projections regarding total labor costs.”

The base figure is projected to be around 1.6 million pesos. Internally, estimates of the real cost of a worker to the employer are around 3 million pesos.

The Ministry of Labor has proposed an 11 % increase. “This proposal aims to restore workers’ purchasing power, significantly exceeding inflation projections for the end of the adjustment cycle.”

With this increase, the minimum wage would rise from $1,423,500 to $1,580,085; the transportation allowance would increase from $200,000 to $222,000, bringing the total amount received by workers from $1,623,500 to $1,802,085.

However, if employer contributions to pension and health insurance, social benefits (bonuses, severance pay, and vacation pay), and parafiscal contributions (Compensation Funds) are included, the total employer burden would be approximately between $2,730,000 and $2,800,499 COP, which is double the net minimum wage.

The deadline for an agreement from the tripartite committee is December 15. If no agreement is reached by then, the National Government will have until December 30 to decree the increase on its own.

M.Pino

Source: marca

(Reference image source: Flavia Carpio on Unsplash)

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