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Colombia Announces 22.7% Minimum Wage Increase for 2026

Published December 30, 2025, 08:25
Colombia Announces 22.7% Minimum Wage Increase for 2026

The Colombian government has announced a 22.7% increase in the minimum wage for 2026, setting it at 1.75 million pesos (approximately $470 or €402). This increase affects around 2.5 million workers and is the last to be announced by the current government before the May 2026 elections. The goal is to reduce inequality and improve the living conditions of workers. The new increase is more than double last year's (+9.54%), which reached 1.42 million pesos. It also exceeds inflation forecasts, which are estimated to reach 3.6%. President Gustavo Petro acknowledged that wage increases could exacerbate inflation. Economists are warning of potential impacts on the economy, including the cost of public sector payroll, pensions, and the informal labor market. The increase was announced by presidential decree, as no agreement was reached between employers and unions. In addition, a subsidy for public transport tickets was announced for workers earning up to two minimum wages. Overall, it is estimated that the lower incomes of workers could reach 2 million pesos per month.