Since January 1, 2025, the amount pensioners receive increased. Learn how the increase is calculated.
How much pension will people who earn more than the minimum earn.
He President Gustavo Petro decided to decree an increase of 9.54% for people who earn the minimum wagegoing from being in $1,300,000 to $1,423,500, This directly influences the pension payment for those people who receive this allowance. Likewise, those who receive more than this price will have a different increase.
According to him Article 14 of Law 100 of 1993pensions are readjusted annually to maintain constant purchasing power. This adjustment depends on whether the pension is equivalent to the minimum wage or if it is higher than this, and is done as follows:
For the pensions which are equal to current monthly legal minimum wagethe increase is carried out automatically in the same percentage by which the minimum wage increases. In 2025, the sminimum wage increased by 9.54%going from $1,300,000 in 2024 to $1,423,500. Consequently, the pensions that equivalent to the minimum wage will have the same increase of 9.54%.
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On the other hand, pensions above the minimum wage are adjusted each year based on the percentage variation of the Consumer Price Index (CPI) certified by DANE, which stood at 5.2%.
How much will pensions increase for people who earn more than the minimum wage?
The formula used to calculate the pension readjustment above the minimum wage is quite simple and is based on the percentage increase in the ÍConsumer Price Index (CPI). To find the new pension value, multiply the current pension amount by the sum of 1 plus the percentage increase in decimal form. The general formula would be:
- New pension = Current pension × (1 + Percent increase)
For example, if a pension of $2,000,000 must be readjusted based on a CPI of 5.2% (which is equal to 0.052 in decimal form), the calculation would be as follows:
- New pension = 2,000,000 × (1 + 0.052)
The result of this calculation is $2,104,000, what represents the new pension amount after the 5.2% adjustment. This process guarantees that pensions above the minimum wage are adjusted each year to maintain their purchasing power against inflation.
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Since when will pensions increase in Colombia?
In Colombia, pensions are readjusted on January 1 of each yearas established by the Law 100 of 1993. By 2025, pensions will increase based on two factors:
- Pensions equal to the minimum wage: They will raise the January 1, 2025 in a 9.54%the same percentage by which the minimum wage increased.
- Pensions higher than the minimum wage: The January 1, 2025but depending on the 2024 CPIwhich was from 5.2%.
Therefore, the increase will be effective from January 1, 2025 for both pension categories.
Source: Digital Integrated System
