Pensions
Petro signs new decree maintaining $2 million minimum wage amid protests
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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.
A Drees study reveals that 35% of people retiring between 2012 and 2020 saw their living standards rise, with retirees now faring almost as well as workers. Three COR-commissioned studies confirm the benefits of raising the legal retirement age, an economically sound but politically charged option.
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President Gustavo Petro defended his pension reform in response to Skandia CEO Santiago García, who warned about minimum wage hikes above inflation. Petro stressed that long-term sustainability relies on national wealth and productivity, not real wages. He highlighted that pensions must adjust to the vital basket.
The Ministry of Finance has begun processing pension payments for about 7,000 retirees, including teachers, following months of delays due to a dispute with the Kenya Revenue Authority (KRA). This step is expected to bring relief after their suffering without income. The ministry explains that payments will follow the previous tax rules to avoid further delays.
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In France, demographic imbalances in the public sector force the state to heavily fund pensions for former civil servants. With nearly 6 million public workers, or one in five employees, the number of active agents falls short of retirees, requiring significant over-contributions.
The Superintendency of Pensions announced a 3.45% increase in the Universal Guaranteed Pension (PGU) for beneficiaries under 82 years, raising it to $231,732 starting February 1, 2026. This adjustment is based on the 2025 IPC variation and also impacts related pension amounts. Additionally, new taxable ceilings for pension contributions were reported from January.
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The Superintendencia de Pensiones has published Normativa NCG N° 354, regulating the establishment and launch of new Administradoras de Fondos de Pensiones (AFPs), aligned with the 2025 pension reform. The norm raises the minimum capital requirement to UF 50,000 and sets experience standards for directors and investment executives, also applying to existing AFPs from April 2027.
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