State Council suspends 23% minimum wage increase for 2026, jeopardizing government decision

TL;DR

The State Council provisionally suspended the decree establishing a 23% minimum wage increase for 2026.
The court cited indications of illegality and the government's use of 'vital salary' as a primary basis for the increase.
The government is ordered to issue a temporary decree with a new minimum wage within eight days.
The suspension is necessary to prevent irreversible economic and legal consequences.
The legally mandated variables for minimum wage determination include inflation, productivity, national income contribution, GDP growth, and inflation targets.
The Council found the decree lacked sufficient explanation of the causal link between legal indicators and the 23% increase.
Using the minimum wage to close social gaps is legitimate but must remain within the legal framework.
A temporary administrative decision is required to avoid a regulatory vacuum.
The Council referenced a past case (2016 minimum wage) where a decree was annulled for insufficient motivation after producing its effects.

Continuar leyendo el artículo original