Is This the Real Minimum Wage?
The minimum wage increase for 2026, defined last December, was 23%. Photo: iStock
TL;DR
- The EU suggests using reference values like 60% of the gross median wage or 50% of the gross average wage for minimum wages.
- Colombia's minimum wage is higher than these EU reference values.
- The ILO states the minimum wage should protect vulnerable workers and consider social factors like poverty reduction and economic factors like productivity and inflation.
- Colombian law requires considering various economic and social factors for minimum wage setting, some of which are difficult to quantify.
- A customary practice involved adding past inflation and productivity growth, plus a discretionary government factor.
- For 2026, a surprising 23% increase was decreed, significantly above the expected range.
- The Council of State could potentially limit this discretionary factor to ensure economic justification for future increases.