The Federation of Freight Transport Entrepreneurs (Fedetranscarga) established its position regarding the national government’s decree that establishes the minimum wage for 2026, and pointed out concerns about the technical support, procedure and economic effects of the measure. The organization stated that the increase was defined based on references to studies by the International Labor Organization (ILO) and to the constitutional concept of minimum vital remuneration.
According to the federation, ILO studies indicate that the setting of the minimum wage must consider both the needs of workers and economic variables such as the payment capacity of companies, productivity, economic growth, employment and informality. In its response to the Government, Fedetranscarga maintains that these factors would not have been fully taken into account in the decision adopted.
Questions to the Government procedure
Fedetranscarga stated that the increase in the minimum wage raises doubts about the procedure used by the Executive, considering that the definition of the minimum vital remuneration corresponds to the legislative sphere. In that sense, he pointed out that the Government introduced the concept of minimum vital income without this being discussed in the institutional scenario provided for salary agreement.
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The federation indicated that this discussion did not take place in the Labor Policies Concertation Commissiona tripartite body in which workers, employers and the Government must participate. From their perspective, the absence of this space in the definition of the salary increase constitutes one of the main points of their response to government action.
What impacts would the measure have according to Fedetranscarga?
In its statement, Fedetranscarga warned that the increase in 23.78% The minimum wage for 2026 would not be aligned with productivity or inflation in 2025. According to the federation, this situation could generate effects on formal employment and raise barriers to entry into the labor market.
The union explained that in the cargo transportation sector, drivers’ salaries represent the 17.5% of the cost structure, and that the monthly cost of a worker earning the minimum wage will increase considerably starting January 2026. This adjustment, according to the federation, will directly impact the operating costs of companies in the sector.
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Effects on companies and public finances
Fedetranscarga pointed out that more than 80% The Colombian business fabric is made up of micro, small and medium-sized companies, which would face greater difficulties in sustaining their payrolls after the salary increase. In its response to the Government, the union warned that this situation could compromise the financial sustainability of the companies.
The federation also referred to the fiscal impact of the increase, indicating that each additional percentage point of the minimum wage implies a greater State disbursement in payrolls and pensions. In this context, he pointed out that the decreed increase occurs in a scenario of fiscal deficit and could affect the increase in prices, interest rates and the competitiveness of the national economy.
Source: Integrated Information System
