Colombia to Temporary Decree on Minimum Wage
(MENAFN) The government of Colombia announced Monday that it will issue a temporary decree addressing the 2026 minimum wage following a provisional suspension by the nation’s highest administrative court.
The dispute over the wage hike intensified as officials reconvened the Permanent Commission on Wage and Labor Policy to address the situation. The Council of State had earlier issued a precautionary suspension of the 23.7% increase enacted in December through a decree by President Gustavo Petro.
While the court’s decision left millions of workers uncertain about their pay, Labor Minister Antonio Sanguino emphasized that the government remains committed to supporting workers. "We will defend to the utmost the right of workers to a living wage," he said after a negotiation session. "The government will comply with the court's order by issuing a new transitional decree, but we are not ruling out maintaining or even exceeding the original figure," he added.
The Council of State described its action as a “precautionary measure” following multiple legal challenges. The court questioned whether the December decree met technical requirements outlined in Law 278 of 1996, which mandates that wage increases account for current inflation and national productivity. Officials also warned that a large wage hike could drive some businesses into the informal sector to avoid higher labor costs.
In a notable development, business organizations—including the National Association of Colombian Businessmen (ANDI), led by Bruce Mac Master—have expressed concern about rolling back the wage now that it has already been applied.
The dispute over the wage hike intensified as officials reconvened the Permanent Commission on Wage and Labor Policy to address the situation. The Council of State had earlier issued a precautionary suspension of the 23.7% increase enacted in December through a decree by President Gustavo Petro.
While the court’s decision left millions of workers uncertain about their pay, Labor Minister Antonio Sanguino emphasized that the government remains committed to supporting workers. "We will defend to the utmost the right of workers to a living wage," he said after a negotiation session. "The government will comply with the court's order by issuing a new transitional decree, but we are not ruling out maintaining or even exceeding the original figure," he added.
The Council of State described its action as a “precautionary measure” following multiple legal challenges. The court questioned whether the December decree met technical requirements outlined in Law 278 of 1996, which mandates that wage increases account for current inflation and national productivity. Officials also warned that a large wage hike could drive some businesses into the informal sector to avoid higher labor costs.
In a notable development, business organizations—including the National Association of Colombian Businessmen (ANDI), led by Bruce Mac Master—have expressed concern about rolling back the wage now that it has already been applied.
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