The president of Fenalco, Jaime Alberto Cabal, described as “populist” and “inflationary” the government’s announcement to set by decree an increase of 11 % for the minimum wage of 2026. According to the union leader, that figure doubles inflation and breaks with the historical formula that combines inflation and productivity.
Within the framework of the second and last day of the Fenalco Congress, in Medellín, Cabal recalled that, according to The Bank of the Republic, the basis for fixing the minimum wage is to preserve the purchasing powerfirst recognizing the inflation of the previous year and then productivity.
“We are in 5.2 % and can close higher; that is the floor, never less. If the productivity is added to that, it never reaches 11 %. The bank is absolutely notice that such an increase would be inflationary and would attempt against the generation of employment,” he said.
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He added that the panorama for businessmen becomes worrying if to the above The cost overruns of the labor reform are added, which are already increasing the operation between 18 % and 34 %.
To this we must add The reduction of the weekly day, which implies more expenses because companies do not stop, he added.
You have to be aware of food performance in inflation.
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For the union leader, an increase to the level posed by the Petro government also affects the competitiveness of the country. “11 % are unprecedented in the history of Colombia, it limits the ability of companies to defend imports and slows the possibilities of exporting.”
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Likewise, indicating that it is still very early to commit to a minimum increase percentage for next year, he commented that as things are A 7 % increase could be insufficient if inflation ends between 6 % and 6.5 % for 2025.
“What worries most is that food and drinks, key items in household spending, are the ones that are going up the most,” The union leader commented.
An overwhelmed increase in minimum can deteriorate the competitiveness of companies.
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The perception of entrepreneurs on the increase
The guild’s position coincides with the perception collected in a Fenalco survey conducted in September 2025 to measure the first impacts of the labor reform and, which It included a question about the perception of merchants around the government’s approach that the increase in the minimum wage for 2026 is greater 11%.
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According to the survey, 59 % of entrepreneurs consider “very worrying” an increase in the minimum wage well above inflation because it would compromise the sustainability of their companies, while 31 % qualifies it as worrying by anticipating drastic adjustments in their structures. Just 10 % believe it would be manageable, little or nothing worrying.
“These results reflect a high level of uncertainty in the face of future labor costs, with the risk of greater informality and a less competitive environment for business activity,” The guild analysis about the opinions of the consulted says.
Jaime Alberto Cabal Sanclemente, President of Fenalco
Fenalco x
It makes no sense to go to the Concertación Table
By explaining how the minimum salary, Jaime Alberto Cabal should be, He reiterated that Fenalco will not participate in the tripartite agreement that must meet at the end of the year to define the minimum increase.
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“The government dynamited the sense of dialogue by announcing in Bucaramanga that will set the increase by decree. The agreement cannot become a clown. This will be a year of minimum populist wage because there are elections in 2026, and the technical contributions and objectives will not have a place”said the union leader.
In this context, the conclusion of the trade union is that a disproportionate rise in the minimum wage, added to the labor reform, It will sharpen informality, reduce hiring and put the sustainability of thousands of formal companies at risk.
Constance Gómez Guasca
Economy and Business Writing
