Unions say no agreement reached at minimum wage negotiation table, are $2 million guaranteed?
Once the State Council provisionally suspended the minimum wage increase, the Permanent Commission for the Concertation of Salary and Labor Policies meeting was convened to reach an agreement on said salary. The issue is that the Minister of Labor, Antonio Sanguino, assured that an agreement was reached with most business guilds to maintain the increase at 23.7% in the transitory decree that the Executive must obligatorily issue, but the guilds' interpretation is that it was a unilateral decision. The truth is that the Government will issue the transitory decree in the coming days, as requested by the judicial body. This document will maintain the basic minimum wage for 2026 at $1,750,905 per month and $2 million with transport allowance. Does this guarantee that companies will maintain the salary in this range?
TL;DR
- The Colombian government will issue a decree maintaining the minimum wage at $1,750,905 monthly, plus transport allowance, totaling $2 million.
- The State Council had provisionally suspended a previous minimum wage increase, leading to this new decree.
- Major business guilds like Andi and Asobancaria support maintaining the wage increase.
- Key SME, agricultural, and retail associations (Acopi, SAC, Fenalco) claim the decision was unilateral and warn of negative economic consequences, including job losses.
- Acopi president states that if the State Council overturns the increase, new contracts may be adjusted, while existing ones remain unchanged.
- Some companies, like Madecentro, have committed to maintaining the higher minimum wage for their employees, managing increased costs through internal adjustments.