Petro calls elimination of special prime for congressmen fair

President Gustavo Petro defended the government's decree eliminating the special services prime for congressmen, worth $16,914,540 monthly. The non-retroactive measure will take effect for new legislators from July 20, 2026. Petro argued it is fair given Congress's rejection of tax reforms targeting the wealthy.

On January 19, 2026, the Colombian government issued Decree 0030, revoking Decree 2170 of 2013 and eliminating the special services prime for senators and representatives. This prime, worth $16,914,540 monthly, was an additional remuneration component, distinct from the legal prime for formal workers, and had replaced benefits like location, housing, and health primes.

From his X social media account, President Gustavo Petro justified the measure: “They keep approving tax reforms against the poor and sink those that impose taxes on the rich. That's why I think it's very fair to reduce congressmen's salaries.” The revocation is not retroactive, so current legislators will retain the benefit until July 20, 2026, when new congressmen elected on March 8 take office.

The decree, signed by Finance Minister Germán Ávila Plazas and Public Function Director Mariela Barragán, highlights that congressmen's remuneration is disproportionate to the average Colombian income and the national economic reality. It aims to promote fiscal sustainability, public spending rationality, and equity, aligning with the 2022-2026 National Development Plan 'Colombia, World Power of Life'.

This action follows previous bills aimed at reducing legislative salaries that were sunk in Congress, one of the highest in the region.

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President Gustavo Petro announces 23% minimum wage hike to $1,750,905 COP for 2026 at podium, with cheering workers and concerned business leaders.
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Petro Decrees 23% Minimum Wage Increase to $1,750,905 for 2026 After Stalled Talks

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Following the anticipated Dec 29-30 announcement after failed Tripartite Commission negotiations—as previously reported—President Gustavo Petro decreed a 23% hike to the 2026 legal monthly minimum wage, setting it at $1,750,905 plus $249,095 transport allowance (up 24.5%), totaling $2 million. The move aims to cover vital family living costs amid criticism from business leaders over economic risks.

The Colombian government has confirmed the elimination of a special service bonus worth about 11 million pesos for each congressman, as part of efforts to cut public spending in 2026. This move aims to address the ongoing fiscal crisis and promote austerity. Finance Minister Germán Ávila explained that the benefit, initially for installation costs, became improperly generalized.

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President Gustavo Petro signed Decree 1390 of 2025 declaring a 30-day economic and social emergency in Colombia after the Congress sank the financing bill. The measure aims to raise funds to cover a $16.3 trillion deficit and ensure essential services like health. The announcement sparks legal and political debate, with reviews pending from the Constitutional Court and Congress.

President Gustavo Petro defended the placement of US$4.95 billion in bonds, Colombia's largest issuance ever, as a measure to lower the current debt costs. He linked this to the economic emergency decree, warning that its annulment by the Constitutional Court would raise borrowing expenses again.

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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 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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Colombia's Senate Seventh Commission archived the health reform bill with eight votes in favor and five against, on the last day of the ordinary legislative session. This marks the second sinking of the initiative pushed by President Gustavo Petro's government. Reactions highlight concerns over the system's financial sustainability.

 

 

 

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