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.
On December 29, 2025, President Gustavo Petro issued the decree raising the minimum wage from $1,300,000 to $1,750,905—the highest adjustment in recent terms—factoring in inflation, productivity, and the family basket cost of about $2.9 million for a household of 3.4 people, per updated surveys aligning with ILO standards.
In a presidential address, Petro emphasized a real 18.7% increase to boost demand, employment, sales in small businesses, and reduce poverty for 2-3 million Colombians. "Nothing creates more wealth than work."
The unilateral decree followed deadlock in talks, bypassing consensus. Business groups like Andi, whose president Bruce Mac Master labeled it 'populist,' warn of inflation spikes, job losses in formal sectors, strained public finances, and harm to SMEs. Employer costs per minimum-wage worker exceed $2.8 million monthly, including contributions (health 8.5%, pension 12%, ARL), primes ($1,083,300 twice yearly), and severance ($2M + 12% interest). Experts predict 15-20% price rises in services.
The integral salary for executives is set at $22,761,765 (13x base), easing payments while preserving rights. At $3,707/USD, the base equates to about US$539.