12% Increase in Minimum Wage Set for Colombia in 2024

Exciting news out of Colombia – the minimum wage is set to increase by 12% in 2024, according to Labor Minister Gloria Ines Ramirez. This will bring the figure to 1.3 million pesos ($340) per month.

With an increase of 140,000 pesos ($36.63) per month, workers will see a significant boost in their earnings.

The wage increase is a much-needed relief for the country, which is currently grappling with high inflation and a struggling economy. In fact, the twelve-month inflation rate to the end of November reached a staggering 10.15%.

While the increase for 2024 is less than the rise seen in 2023, it is a step in the right direction for workers. Interestingly, the agreement was not reached with business leaders, despite multiple discussions and meetings between the government and industry groups, Ramirez told journalists.

Even though an agreement was not reached, the lack of consensus will not impact the implementation of the new minimum wage, as it is ultimately determined by the government.

Despite the lack of agreement for 2024, business associations and workers’ unions had previously managed to reach an agreement with the government on minimum wage increases for 2022 and 2023.

With the Colombian economy experiencing a slowdown, the minimum wage hike will provide much-needed support to workers. The central bank’s technical team had increased its 2023 growth outlook to 1.2% at the end of October, but the economy actually shrank by 0.3% in the third quarter compared to the year-earlier period, prompting bank chief Leonardo Villar to warn that the forecast was unlikely to be met.

It’s clear that the wage increase comes at a crucial time for workers in Colombia, and it will make a meaningful difference in their lives.

($1 = 3,822.05 Colombian pesos)

» …
Read More rnrn