What will happen to the transport subsidy after the minimum wage increase suspension
The decision adopted by the Council of State to provisionally suspend Decree 1469 of 2025, which set the minimum wage at $1,750,905, left many questions in the air regarding the future of thousands of workers in Colombia...
TL;DR
- The provisional suspension of the 2026 minimum wage decree does not affect the transport subsidy.
- The transport subsidy, set at $249,095 for those earning up to two minimum wages, continues to be legally effective.
- Payments already made based on the suspended minimum wage decree are protected and will not be retroactively adjusted.
- The transport subsidy's purpose is to offset displacement costs or provide connectivity for telework.
- A new decree is expected within eight days, which will determine if the transport subsidy remains at its current value or is adjusted.
- If the new minimum wage is lower, more workers could become eligible for the transport subsidy.