In December, the discussion for the increase in the minimum wage of 2023 will formally begin. The business sector and the workers’ unions will seek to reach an agreement with the intermediation of the National Government.
(Minimum salary 2023: how is the bid and what is taken into account).
According to experts, three components are involved in negotiating the minimum wage.
First, inflation for the year ending. On this, the Constitutional Court said that the increase in the minimum wage can never be less than the increase in consumer prices in the year that is ending.
Second, the annual GDP and its projection, productivity contribution to the growth of the economy and the contribution of wages to national income.
In fact, the percentage of productivity is established by the National Administrative Department of Statistics (Dane) and is endorsed by the Permanent Commission on Labor and Salary Policy.
(The factors that will determine the rise in the minimum wage for 2023).
And thirdly, the result of the negotiation between the parties involved (Government, employers and workers), as well as “socioeconomic conditions in which the minimum wage is being negotiated”, explained Stefano Farné, director of the Labor Market and Social Security Observatory of the Externado de Colombia University.
In the latter, the role of the Government is crucial, as it acts as a mediator between the parties involved.
(Minimum wage: the path that begins to travel for its definition).
According to the expert, this year, the key aspect of the negotiation is the inflation expectations that are being generated not only in the unions, but also in the employers.
Therefore, to determine the increase in the minimum wage for 2023, “sIt would be good for the Government to commit to giving clear signals that it does not want prices to continue to rise next yearFarne said.
And he added that, although the rise in inflation is inevitable at the world level, the government “should try to dampen expectations of rising inflation as much as possible,” in order to achieve a viable negotiation with long-term results.
We analyze the forecasts with which the negotiation began and the impacts that the increase would have.
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