President Gustavo Petro issued Transitory Decree 0159 on February 19, 2026, keeping the minimum wage at $1,750,905, a 23% increase from 2025. This measure responds to an order from the Council of State while it decides on the original decree. The government defends the figure for integrating economic and constitutional criteria, though business groups express concerns over employment and inflation.
On February 19, 2026, President Gustavo Petro signed Transitory Decree 0159, setting the 2026 minimum wage at $1,750,905, a 23% increase from the $1,423,500 of 2025. This decision is taken while the Council of State resolves the merits of the previous year's wage hike, following a judicial order to issue a provisional measure.
The figure is calculated by adding 13.6% from economic parameters in Law 278 of 1996—including expected inflation of 5.3%, productivity of 0.91%, wage contribution to national income of 2.81%, labor share in mixed income of 1.65%, and estimated GDP growth of 2.9%—plus an additional 9.4% to partially close the gap with the vital wage estimated by the International Labour Organization. The decree notes that the basket for a sufficient income exceeds by 23% the coverage of the 2025 minimum wage.
Labor Minister Antonio Sanguino defended the measure: “This decree is transitory and responds to a judicial order, while the high court decides on the merits of the increase.” He added that it complies with Article 53 of the 1991 Constitution, which guarantees a minimum vital and mobile wage, integrating not only economic criteria but also human dignity and the progressivity of labor rights.
However, business groups like Fenalco warn that the increase could lead to the loss of over 700,000 jobs, while Bruce Mac Master, president of Andi, expressed concerns over effects on inflation, employment, informality, competitiveness, and viability of SMEs, affecting more than 11 million people with incomes below the minimum.
Fitch Ratings warned that the hike will pressure banking portfolio quality, with narrower margins, higher credit costs, and deterioration in debtors' payment capacity, amid inflation near 6% and interest rates around 11% for 2026. The transport subsidy rose 24.5% to $249,095, unchanged in the main decree.
