Real increase in the minimum wage after inflation of 5.62%.

Colombia ended 2021 with an annual inflation of 5.62 %, the highest in the last 5 years. It should be clarified that inflation is rising worldwide due to the effects of the pandemic.

According to data provided by the National Administrative Department of Statistics, the sectors with the most important variations in inflation last year were food and beverages (17.23 %), restaurants and hotels (8.83 %) and transportation (5.69 %). International phenomena such as problems in supply chains and the national strike influenced the increase in the value paid by consumers for basic food basket products in the country.

Looking at inflation by sector, it was concluded that poor and vulnerable households ended 2021 with an inflation of 6.85%, while for the rich it was 4.39%.

This gap between one and the other, according to the Dane, “is associated with two very important elements: the greater weight of food and rent and public services within the basket of households in poverty”.

Having these data clear, what was then the increase in real terms of the minimum wage for 2022.

THE MINIMUM It must be remembered that the minimum wage in Colombia for the current year is one million pesos plus the transportation subsidy of 117,172 pesos. The increase with respect to 2021 was 10.07 %, but taking into account last year’s inflationary data, the real increase of the minimum will be 4.45 % at a general level, while for poor families it will be 3.22 %. Source: PORTAFOLIO

Source:

https://www.portafolio.co/economia/finanzas/salario-minimo-en-colombia-2022-aumento-real-del-minimo-tras-inflacion-del-2021-560348