The reasons President Petro gave for saying the vital minimum wage should be $2'155,000
Petro defends a high increase in the minimum wage. Photo: iStock and Presidency
TL;DR
- President Gustavo Petro proposed a vital minimum wage of $2,155,000 pesos to close economic gaps.
- An economist's analysis indicates that minimum wage has lagged behind labor productivity since 1996, with a significant accumulated gap.
- The economist calculated that a minimum wage adjusted for inflation and productivity would be $2,155,410 pesos in 2025, instead of $1,423,500.
- Some government officials, like the Minister of Mines and Energy, support higher minimum wage increases.
- Legal experts caution that issuing a new decree with a high percentage increase, similar to the suspended one, could lead to contempt of court.
- The Council of State previously suspended a decree for its method and criteria, not just the percentage increase.
- Legal advice suggests the new decree must be strictly based on criteria like inflation, productivity, and GDP growth as per Law 278 of 1996.