The decision to increase the minimum wage for 2025 in Colombia enters its final stretch and proposals and recommendations for the increase continue to appear from different entities. This time the turn was for the National Association of Financial Institutions (Anif), who assured that the increase should be 6%.
(See: ‘Be consistent with the country’, the academy’s position for increasing the minimum).
For the study center, the minimum wage in the country, in recent years, has been impacted by political factors beyond the technical ones, which has caused “grow consistently above inflation and productivity“.
He argued that “In 2023, 54.7% of workers received income of up to one minimum wage, higher than what was observed in previous years, which shows a growing concentration at low wage levels” and “Minimum increases are disproportionately affecting small businesses, which bear a greater burden of labor costs compared to large businesses“.
Regarding 2024, he recalled that 56% of employed people are in informal employment, “being excluded from the benefits of minimum wage negotiations” and An econometric analysis revealed that presidential unfavorability is correlated “with salary increases higher than those determined by economic fundamentals“.
(See: How much has the minimum wage evolved in the last 20 years?).
Thus, for Anif, The minimum increase should be a maximum of 6%, based on inflation projections for all of 2024 of 5% and productivity growth in the current year of 0.78%.
“This would avoid further widening the gap between formal and informal workers.“, argument.
If the minimum is raised by the 6% that Anif proposes, It would be an increase of 78,000 pesos and this salary would remain at 1,378,000 by 2025.
Businessmen and unions have assured that the increase should be between 5% and 7%, the unions are asking that it be above double digits, that is, from 10% up, and the Government has commented that the decision should be between 6.2% and 6.5%.
(See: The clues and calculations of how much the minimum wage would increase in 2025).
Minimum wage.
Dates to take into account
This is the agenda you should keep in mind when negotiating the minimum:
– Tuesday, December 3: Productivity figures to be delivered by the National Administrative Department of Statistics (Dane) are discussed.
– Wednesday, December 4: GDP figures are discussed.
– Friday, December 6: The inflation figure is analyzed.
– Monday, December 9: It will be time to evaluate the unemployment figures for October, the closest ones for the discussion of the minimum.
(See: Minimum wage 2025: this is what it would look like with the increase proposed by Gustavo Bolívar).
– Wednesday, December 11: The proposals for increasing the minimum wage for 2025 are officially received.
– Thursday December 12th and Friday December 13th: Discussions will take place to reach an agreement.
– Sunday, December 15: first legal expiration for the agreement of the minimum.
– Monday, December 16: presentation of written objections from each party involved in the negotiation (unions, company representatives).
– Thursday, December 19: session to study the caveats.
– Tuesday 24, Wednesday 25, Thursday 26 and Friday 27 December: extraordinary minimum consultation days.
(See: Labor unions are upset by increases in the minimum proposed by the Government).
– Monday, December 30: deadline for issuing the minimum wage.
Minimum wage.
CAMILO HERNÁNDEZ M.
Digital Portfolio Editor
