Colombia's Minimum Wage Increase for 2025

BOGOTA (Reuters) – Colombia's minimum wage will increase by 9.54% in 2025, as announced by President Gustavo Petro on Tuesday. This hike was declared by decree after the government, business associations, and workers' unions failed to reach a consensus.

The new minimum wage will rise to 1.4 million pesos ($323.90) per month, up from 1.3 million pesos per month this year.

This increase is smaller than the one announced for this year, where the government declared a 12% wage rise for 2024.

Previously, business groups and unions had successfully negotiated minimum wage increases for 2022 and 2023. However, no agreement was reached for the current year's minimum wage.

Colombia's central bank forecasts the annual inflation rate for this year will conclude at 5.3%, with an expected decline to 3.1% by the end of 2025.

($1 = 4,395.44 Colombian pesos)