Gustavo Petro announces a 16% increase in the minimum wage in Colombia

The Colombian President, Gustavo Petro, confirmed this Thursday that the increase in the minimum wage was defined for 2023. It will be 16%, that is, a total of 1,160,000 pesos plus the transportation subsidy, which increased by 20%. Thus, the minimum wage for next year will be $1,300,606 pesos (about $272).

The decision was made known after a meeting between the head of state, representatives of employers, unions and the Minister of Labor, Gloria Inés Ramírez.

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The head of state assured that he hopes that with the increase that was arranged, “the purchasing power that has been lost in recent months due to inflation will be recovered.”

Petro He assured that with the minimum wage of 2023, he also hopes that the increase in productivity can be recovered on average and “also allows us to make internal demand jump in Colombia and its most vulnerable sectors, in such a way that we can correct a situation of growth of hunger”.

The president explained that he is convinced that if domestic demand grows, the Colombian economy will grow “far beyond the not very optimistic forecast that international conditions are imposing for Colombia.”

???? #Attention | President @petrogustavo announces that the minimum wage will increase 16% by 2023.

Minimum salary: $1,160,000
Transportation Assistance: $140,606 pic.twitter.com/m5IDbPjqV3

– Colombian Presidency ???????? (@infopresidencia) December 15, 2022

For several days, talks had been taking place at the tripartite table (Government, businessmen, unions), which had the objective of defining the increase. The minimum trading floor was a rise of 13.77 percent, which comes from the sum of the inflation data to November of 12.53 percent and productivity of 1.24 percent. And the ceiling was the figure of 20 percent that the workers’ unions proposed.

President Jaime Alberto Cabal, president of Fenalco, at the time, assured that among the agreements reached to restore purchasing power to people are the de-indexation of the increase in the minimum of a series of prices and services and formally requesting the Ministry of Finance the commitment to lower the usury rate, recalculating the formula that is applied today.

Source: Elcomercio

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