This will happen with the payment of severance pay and social security after the suspension of the minimum wage

The Council of State ordered this Friday the provisional suspension of the effects of Decree 1469 of 2025, through which the National Government had set a 23% increase for the minimum wage of 2026.

This will happen with the payment of severance pay and social security after the suspension of the minimum wage

TL;DR

  • The Council of State suspended the 23% minimum wage increase for 2026 due to insufficient technical justification by the government.
  • The suspension creates uncertainty about social security contributions, severance pay, and bonuses for workers and employers.
  • Payments made in January and early February under the now-suspended decree are considered valid.
  • Companies are advised to continue payments at the current rates to avoid legal issues until a new decree is issued.
  • Severance pay for 2025, deposited by the February 14th deadline, is unaffected as it's based on the 2025 wage.
  • The government must issue a new decree within eight days, respecting legal criteria like inflation and productivity.
  • President Petro criticized the decision as an attack on purchasing power, while business groups expressed concern about job creation.
  • Workers will continue receiving the increased salary until the new administrative act is published; no retroactive payments will be made for already paid wages.