What will happen to the minimum wage increase after the Constitutional Court's recent announcements
The increase in the minimum wage in Colombia is once again in the eye of the storm. Photo: Image generated with artificial intelligence.
TL;DR
- The State Council suspended the provisional effects of the decree setting the 2026 minimum wage at $1,750,905 (a 23% increase).
- The government is ordered to issue a temporary, substitute minimum wage determination.
- The suspension aims to prevent irreversible economic effects while the legality of the increase is examined.
- Concerns are raised about the criteria used to fix the increase, specifically the 'vital wage' concept and its proportionality to inflation and productivity.
- The government has issued a temporary decree maintaining the 23% increase after discussions with businesses.
- The situation creates legal and economic uncertainty for businesses and workers until the State Council makes a final ruling.