'It wasn't technical': business leaders back halt to 23% minimum wage increase
The Council of State ordered the provisional suspension of the decree that set the minimum wage increase for 2026.
TL;DR
- The State Council provisionally suspended the decree setting the 2026 minimum wage increase.
- Business groups, including Fenalco, Consejo Gremial Nacional, and Andi, largely support the decision, arguing the increase lacked technical and legal foundations.
- These organizations contend the significant wage hike negatively impacts cost structures, inflation expectations, and formal employment sustainability.
- Acopi expresses concern about legal uncertainty for micro and small businesses resulting from the suspension.
- The decision creates an eight-day deadline for the government to issue a new decree while the State Council makes a final ruling.
- Some political figures also acknowledged the predictability of the suspension due to a perceived lack of solid technical basis for the original decree.