Without an agreement, it could again be defined by presidential decree.
News Colombia.
Colombia is in one of the most relevant discussions of the year: the definition of the minimum wage for 2025. This decision directly affects 3,716,000 workers who receive this income, according to Dane figures, but it also influences the entire economy, since many goods and services are indexed to the percentage increase in the minimum wage.
With preliminary proposals already on the table, a range between the “floor” and the “ceiling” has been defined for the adjustmentwhich guides the negotiations.
The Minister of Labor, Gloria Inés Ramírez, explained that the proposals delivered on December 11 allow a clear negotiation range to be established:
- Floor (5.2%): This figure corresponds to the proposal of the Colombian Association of Micro, Small and Medium Enterprises (Acopi), based on the inflation projection for 2024. With this increase, the minimum wage would go from $1,300,000 to $1,367,000, which which represents an increase of $67,600.
- Roof (12%): This percentage was raised by the labor confederations, including the CUT, the CGT and the CTC, who argue that a substantial adjustment is necessary to improve the purchasing power of workers. If approved, the minimum wage would increase by $156,000, remaining at $1,456,000.
The importance of the schedule
The negotiation process is subject to a strict schedule:
- December 15: Deadline for the Permanent Commission for the Coordination of Salary and Labor Policies to reach an agreement.
- December 30: If consensus is not achieved, President Gustavo Petro may set the increase by decree.
Although the ideal is to achieve a consensus between businessmen, unions and the Government, the possibility that the adjustment is decreed directly is becoming more and more likely due to the lack of agreement.
Implications of the increase
The increase in the minimum wage not only affects those who receive it directly, but also sectors such as social security, where contributions are calculated based on this income.
In addition, the defined percentage will influence the cost of indexed goods and services, such as rent and educational tuition.
An increase close to the “floor” could be seen as a relief for entrepreneurs, especially SMEs, which represent 80% of the Colombian business fabric.
However, from the perspective of workers, a lower increase would limit purchasing power in a context of high inflation.
On the other hand, an adjustment close to the “ceiling” could benefit workers, but would generate tensions in productive sectors that warn of possible increases in labor informality and production costs.
Final screening
Experts agree that the increase could be between 6.2% and 7%, a midpoint that balances the demands of both parties.
This range had already been raised by the former Minister of Finance, Ricardo Bonilla, and coincides with the current Government’s priorities of avoiding excessive adjustments that generate inflationary pressure.
The cost of a worker would increase by $270,000 for companies with a minimum increase of 12%. The first legal deadline to agree on the 2025 minimum wage has already expired. The unions and centers are divided into 6.8 points
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— Diario La República (@larepublica_co) December 17, 2024
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