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.
Colombia's Council of State, in its Fourth Section, provisionally suspended Decree 1469 of 2025, issued by President Gustavo Petro's Government, which set the 2026 monthly minimum wage at $1,750,905—a 23.7% increase over the prior value—plus a $249,095 transportation subsidy. The ruling stems from shortcomings in the supporting memorandum, which inadequately addressed criteria under Law 278 of 1996, such as the inflation target (projected at 6.4% for 2026 by the Central Bank), productivity, wages' contribution to national income, and 2025 GDP growth.
The court gave the Executive eight days to issue a transitory decree incorporating these factors, while reviewing the merits of the case. Luis Fernando Mejía, CEO of Lumen Economic Intelligence, stated: 'The ruling does not immediately alter the cost shock, but introduces uncertainty that may impact formal hiring and inflation expectations.' Former Finance Minister José Manuel Restrepo added: 'It changes absolutely nothing; it just demands technical rigor in justifying the 23%.'
The Government insists the original decree remains in force until the new one. President Petro said: 'Suspending a vital minimum wage decree risks the Constitution, which does not allow eroding wage purchasing power.' Labor Minister Antonio Sanguino urged: 'This fortnight's pay must include the corresponding adjustment, effective from January 1, 2026.' Business groups like Andi and Fenalco welcome the emphasis on procedure but call for protecting workers; Andi President Bruce Mac Master urged 'maintaining the increase where possible.'
The suspension affects about 70 indexed goods and services, including traffic fines, SOAT insurance, medical consultations, and VIS/VIP housing. January 2026 inflation hit 5.35%, with rises in restaurants (9.01%), health (7.38%), and transport (5.76%). Under the original increase, Colombia would have the region's fifth-highest minimum wage at US$539.6, aiding 11.38 million workers below minimum in 2025. The provisional measure is not retroactive, safeguarding prior payments.
