CUT urges government to approach 16% minimum wage increase

The Central Unitaria de Trabajadores (CUT) valued Interior Minister Armando Benedetti's proposal for a 12% increase in the 2026 minimum wage but urged the government to get closer to the 16% sought by unions. CUT president Fabio Arias made this direct appeal to President Gustavo Petro. Negotiations continue with key dates from December 22 to 30.

The debate over Colombia's 2026 minimum wage progresses amid divergent positions from unions, businesses, and the government. On December 17, 2025, Interior Minister Armando Benedetti announced in an interview with RCN's La FM that the government could decree an increase above 12%, prompting a positive but conditional response from the CUT.

CUT president Fabio Arias valued Benedetti's proposal but stressed the need to approach 16%. "From the Central Unitaria de Trabajadores, it seems like a good announcement to us, but we continue insisting, especially to those who will ultimately make the decision, President Gustavo Petro, to get as close as possible to 16%," Arias stated. He added that a 16% rise would be "excellent news for Colombian workers," setting the minimum wage at $1,650,680 plus $232,000 in transportation aid.

Labor Minister Antonio Sanguino, meanwhile, pushed for agreement through concertation. He revealed that after the meetings failed by December 15, a new 48-hour period opened to submit reservations and continue discussions. Labor federations hold to their 16% demand, while employers propose 7.21%, which would set the minimum at $1,525,598 with $214,420 aid.

Sanguino noted that without consensus, the increase would be set by decree before December 30, as in previous years. Benedetti hinted at a possible surprise above 12%, nearing the union stance. Both sides show willingness to negotiate, though without yielding yet.

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President Gustavo Petro signs decree for Colombia's 23% minimum wage hike to 2 million pesos in 2026, as workers celebrate and businesses express concerns.
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Colombia Decrees 23% Minimum Wage Increase for 2026 After Intense Negotiations

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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.

Following President Petro's announcement and Labor Minister Antonio Sanguino's confirmation of the 2026 minimum wage decree—due December 29-30 and introducing the 'vital wage' concept—the Central Unitaria de Trabajadores (CUT) demands a 16% rise, while industry leaders caution against inflating living costs amid over 5% inflation.

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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.

After stalled talks, Colombia's government will decree the 2026 minimum wage on Dec. 29-30, debuting the 'vital minimum wage' for family dignity per ILO standards, President Petro announced. Crucially, it won't mandate raises for salaries above the minimum.

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Following the Council of State's suspension of the original decree, the Colombian government issued Decree 0159 on February 19, 2026, provisionally setting the 2026 minimum wage at $1,750,905—a 23% increase from 2025—plus a $249,095 transport subsidy, totaling nearly $2 million. The measure affects 2.4 million workers (impacting ~10 million people) and awaits a final Council ruling.

Amid debates between workers, employers, and the government over the 2026 minimum wage adjustment, Neivans share their views. Proposals range from 16% by unions to 7.21% by business groups, as the labor minister seeks consensus to curb inflationary effects.

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The Autonomous Fiscal Rule Committee (Carf) warns that the recent 23% minimum wage hike to $2 million—decreed on December 30—could cost $5.3 trillion in 2026 (0.3% of GDP), complicating fiscal sustainability. Labor Minister Antonio Sanguino announced plans to desindex key goods from the wage and provide SME relief to curb inflation.

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