The Government set by decree the minimum wage for 2026 with the highest increase in recent years: What does it mean for workers?
A few days before the end of the year, the National Government defined the current legal minimum wage (SMLV) for 2026 by presidential decree, after the agreement between workers, businessmen and the Executive failed within the deadlines set by law.
President Gustavo Petro decreed an increase in the 23.7%, the highest in recent years. The decision was made after several weeks of intense discussions in the Permanent Commission for Coordination of Salary and Labor Policies, without reaching an agreement between the parties. With this setting, The minimum wage remained at $2 million.
The agreement was declared failed after the labor confederations insisted on a double-digit increase, while the business sector defended a proposal close to 7.21%arguing risks in terms of inflation, productivity and sustainability of companies.
Also read: When is transportation assistance not paid in Colombia?
Since when does the 2026 minimum wage start to apply?
With the issuance of the decree, the new minimum wage will begin to take effect as of January 1, 2026 throughout the national territory. This means that, from that date, public and private companies must adjust salaries, payments and settlements that are calculated based on the SMLV.
The Government confirmed that the decree would be published between December 29 and 30as traditionally occurs during the last week of the year, to ensure that the rule comes into effect from the beginning of the new calendar.
How much will the minimum wage be by 2026?
With the decreed increase, the minimum wage for 2026 was around two million pesos including transportation assistancea figure that was highlighted by the Government as a step to recover the purchasing power lost in recent years.
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The increase of SMLV It will have direct effects on daily household expenses. Items such as rent, transportation and some services are usually adjusted based on the minimum wage and the Consumer Price Index (CPI).
As the wage increase approaches 23 %the projections place the CPI below that level, which opens the debate on whether or not the increase will drive new inflationary pressures.
This is how the different sectors reacted
Unions celebrated the decision, considering that it represents relief for low- and middle-income households. In contrast, business associations and analysts warned that an adjustment above productivity could affect formal employment and put pressure on prices.
