Government issues new 2026 minimum wage decree after court suspension

Following the Council of State's suspension of the original decree, the Colombian government issued Decree 0159 on February 19, 2026, provisionally setting the 2026 minimum wage at $1,750,905—a 23% increase from 2025—plus a $249,095 transport subsidy, totaling nearly $2 million. The measure affects 2.4 million workers (impacting ~10 million people) and awaits a final Council ruling.

Colombian government issues new transitory decree for 2026 minimum wage after suspension

In response to the Council of State's precautionary suspension of Decree 1469 (December 29, 2025)—which had set the same wage level—the Ministry of Labor published Decree 0159 on February 19, 2026. This provisional measure maintains the monthly minimum wage at $1,750,905 (up 23% from $1,423,500 in 2025) and the transport subsidy at $249,095, for a total of nearly $2 million. The decree stems from a salary concertation table and is pending a ruling on the nullity process in the Council's Contentious Administrative Chamber.

Labor Minister Antonio Sanguino emphasized during mobilizations: “That decree will maintain the vital salary of Colombian workers and argue the articulation between the law and the prevalent character of the vital and mobile salary established in article 53 of the Political Constitution.”

The increase follows Law 278 of 1996, incorporating 5.3% inflation, 0.91% productivity, 2.81% salary contribution to national income, and 2.9% projected 2025 GDP growth (totaling 13.9%), plus a 9.4% adjustment to narrow the gap between the vital basket ($873,441 per ILO standards) and minimum wage basket ($711,750), weighted 59%/41%. A 4.54% gap remains.

Impacts span education (tuitions, SENA), health (copays), housing (VIS/VIP), fines, and insurance (SOAT). Economist David Cubides of Banco de Occidente noted indirect effects on non-indexed services like transport and restaurants. Asofondos highlighted pension strains, with lifetime annuities rising 57% (to $550 million), tied to productivity or 35% average IPC.

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Realistic courtroom illustration of Colombia's Council of State suspending the 2026 minimum wage decree amid reactions from workers and officials.
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Council of State suspends minimum wage decree for 2026

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The Council of State provisionally suspended Decree 1469 of 2025, which set the 2026 minimum wage at $1,750,905 with a 23.7% increase. The government must issue a new transitory decree within eight days, while the original decree remains in effect until published. Various sectors reacted, from guild support to the executive's defense.

Colombia's Council of State provisionally suspended the decree setting a 23.7% minimum wage increase for 2026, ordering the Government to issue a new transitory decree within eight days. The action, driven by doubts over technical justification, keeps the original increase in effect until the new rule. Experts and business groups highlight the resulting uncertainty, as the Government stresses upholding labor rights.

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Following stalled talks where unions demanded a 16% rise and businesses warned of economic risks, President Gustavo Petro decreed on December 30 a 23% increase in Colombia's 2026 minimum wage, to 1,750,905 pesos plus 24.5% higher transportation aid of 249,095 pesos, totaling 2 million pesos monthly. The hike benefits 2.4 million formal workers and aims for an ILO 'vital wage,' but prompts debate on inflation, SME impacts, and competitiveness.

The Autonomous Fiscal Rule Committee (Carf) warns that the recent 23% minimum wage hike to $2 million—decreed on December 30—could cost $5.3 trillion in 2026 (0.3% of GDP), complicating fiscal sustainability. Labor Minister Antonio Sanguino announced plans to desindex key goods from the wage and provide SME relief to curb inflation.

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Following President Gustavo Petro's December 30 decree of a 23% minimum wage increase for 2026, debate intensifies between workers celebrating relief and businesses fearing job losses and costs. With no prior agreement among stakeholders, focus shifts to implementation and mitigating risks like inflation and informality.

Following stalled negotiations, Labor Minister Antonio Sanguino confirmed the 2026 minimum wage increase—now incorporating President Gustavo Petro's 'vital minimum wage' for family living costs—will be announced Dec 29-30 and decreed by Dec 31, per ILO standards.

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Amid debates between workers, employers, and the government over the 2026 minimum wage adjustment, Neivans share their views. Proposals range from 16% by unions to 7.21% by business groups, as the labor minister seeks consensus to curb inflationary effects.

 

 

 

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