President Petro addresses a lively rally supporting Colombia's 23.7% minimum wage increase, as business leaders warn of job losses amid government suspension.
President Petro addresses a lively rally supporting Colombia's 23.7% minimum wage increase, as business leaders warn of job losses amid government suspension.
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Government defends 23.7% minimum wage increase after suspension

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The Council of State provisionally suspended the decree setting a 23.7% minimum wage increase for 2026, but the government and labor representatives seek to maintain it. President Gustavo Petro called for a national mobilization on February 19 to defend the vital wage. Fenalco warned of risks to over 700,000 formal jobs.

On February 16, 2026, the Concertación Commission began at the Ministry of Labor to discuss the minimum wage adjustment, convened by Minister Antonio Sanguino at President Gustavo Petro's instruction. This meeting, involving the government, business guilds, and labor unions, follows the provisional suspension of the decree setting a 23.7% increase, leaving the wage at $2 million plus a $249,095 transport subsidy.

Sanguino described the conversation as fluid and stated that 'de lado y lado de la mesa se encuentran en favor de mantener el incremento de 23,7% del salario mínimo'. The government reaffirmed its commitment to a vital and mobile minimum wage, as per the Constitution, and plans to issue a transitional decree while defending the measure judicially. Finance Minister Germán Ávila noted that the vital wage is an acquired right and that economic analyses will be conducted to respond to the Council of State.

Meanwhile, Jaime Alberto Cabal, president of Fenalco, warned that maintaining the 23.7% would risk over 700,000 formal jobs and hinder dignified employment for 13 million informal workers. 'No es posible reabrir la discusión ni cambiar los parámetros técnicos establecidos', explained Cabal, who also expressed concern for over one million micro and small enterprises, representing 93% of the business fabric, which could not absorb the increase. He added that the hike is already impacting inflation in sectors like transport, out-of-home food, and health.

Petro, in a televised address, disagreed with the suspension ordered by Council of State magistrate Juan Camilo Zas Moreno, citing Constitutional Court ruling C-815 of 1999 that prioritizes labor protection. He called for gatherings on February 19 at 4:00 p.m. in public squares to support the proposal, emphasizing that 'la defensa de la medida no se limita a argumentos jurídicos o económicos, sino que también requiere la fuerza del pueblo trabajador'.

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X discussions reflect divided opinions on the 23.7% minimum wage increase suspension: progressives and unions reject it and support Petro's mobilization call, businesses like Fenalco warn of over 700,000 job risks and inflation, while some firms like Grupo Éxito confirm implementation without layoffs.

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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.

Following the Council of State's suspension of the 2026 minimum wage decree, President Gustavo Petro signed a new measure on February 19 from Plaza Bolívar in Bogotá, keeping the wage at $2 million (including transport subsidy) despite the ruling. The signing came amid protests defending the 23%+ increase, as the government pushes for a 'vital wage' by 2027.

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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.

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.

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After stalled talks, Colombia's government will decree the 2026 minimum wage on Dec. 29-30, debuting the 'vital minimum wage' for family dignity per ILO standards, President Petro announced. Crucially, it won't mandate raises for salaries above the minimum.

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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Colombia's minimum wage rose 23% for 2026, prompting over 14% of firms to switch from integral to ordinary salaries. A study by the Colombian Federation of Human Management indicates 32% of companies cut expenses while 24% turn to AI automation. Meanwhile, J.P. Morgan notes a robust labor market beforehand, with unemployment at historic lows.

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