Bogotá, Colombia – After weeks of intense negotiations, talks to determine Colombia's 2025 minimum wage have reached an impasse. Labor unions and business associations have failed to reach an agreement, leaving the national government to set the increase by presidential decree.
President Gustavo Petro has called a press conference for Tuesday, December 24 at 1:30 PM to announce the final figure amidst a tense atmosphere of high expectations.
In the last extraordinary meeting, it became clear that the differences were insurmountable. While labor unions, led by the Central Unitary Workers' Union (CUT), proposed a 12% increase that would raise the minimum wage to $1.45 million pesos, business associations, such as Acopi, initially suggested a 5.2% increase, adjusting the wage to $1.36 million pesos.
A confidential figure, presented by the employers at the last negotiating table and which would be close to 7%, did not convince the unions either.
The current minimum wage of $1.3 million pesos plus a transportation subsidy of $162,000 pesos was the result of a 12% increase in 2024, but projections for this year have been more conservative.
Ricardo Bonilla, former Minister of Finance, had anticipated that an increase above the inflation rate plus the productivity point would be unlikely. This suggests an adjustment close to 6.2%, which would place the wage at $1.380,600 pesos. Another possibility is an increase of 6.96%, raising it to $1.390,480 pesos.
The lack of consensus reflects the complexity of the negotiations. While labor unions argue that a significant increase is key to guaranteeing the purchasing power of workers, business associations warn of the adverse effects of an excessive increase in a context of economic slowdown.
Workers eagerly await the government's decision, which could set a precedent in the country's labor relations. This debate not only affects the pockets of millions of Colombians but also raises a crucial question: how far are we from achieving a balance between the needs of employees and the capabilities of employers?
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