Following initial government signals of a 12%+ increase, Colombia's labor unions and pensioners have submitted reservations to the proposed 16% rise for the 2026 minimum wage. Unions demand exceeding inflation to cover family basket costs, citing constitutional and ILO backing, while businesses warn of job losses, higher costs, and political motivations.
The debate on Colombia's 2026 minimum wage continues to heat up. After Interior Minister Armando Benedetti suggested over 12% on December 17—prompting CUT to urge approaching the unions' 16% target—labor federations CUT, CGT, CTC, CPC, and CDP, alongside pensioners' confederations, filed reservations with the Ministry of Labor over the government's 16% proposal.
Unions challenge its fit with the 'vital and mobile' minimum wage concept from the Constitution and ILO studies, arguing it must surpass 5.3% inflation given the basic family basket's high cost. They dismiss evidence tying above-inflation hikes to unemployment, informality, or broader inflation, citing stable recent macroeconomics, and call for reviewing linked tariffs and prices.
Pensioners highlight risks to those on pensions above the minimum.
Businesses push back forcefully. Acopi president María Elena Ospina labeled the talks 'political and irresponsible' in an election year, advocating 7.21% (inflation + 0.91% productivity) in a La Nación interview. She noted only 2.4 million of 23 million workers earn the minimum (13.3 million earn less, unbenefited), warning a 16% jump—triple inflation—would inflate costs, prices, interest rates, and erode purchasing power, devastating MiPymes (99.7% of firms, 80% formal jobs).
Ospina faulted President Gustavo Petro's labor reforms for ignoring small businesses and outlined priorities for the next administration: security, tax relief, sector collaboration.
The Ministry of Labor will assess worker and employer inputs to determine extraordinary sessions or a decree by late December.
