How much could the minimum wage rise in 2023 and what are the forecasts?

Fedesarrollo believes that the Government will seek to raise the minimum between 20% and 25%. The director of Fedesarrollo said that inflation would lead to these new minimum wage levels.

The increase of 10.07% was the last increase in the minimum wage set by then President Iván Duque in December last year, at a time when it was believed that the industry unions had reached a favorable agreement, the country had to wait until the last days of the year for it to be determined by decree. And although we are still in the month of August, the pace of inflation is leading to speculation about what the increase could be for the year 2023.

Today, the current legal minimum wage of 1 million pesos received its first adjusted estimate, and in the middle of the Asobancaria conference in Cartagena, the director of Fedesarrollo, Luis Fernando Mejía, was the first to address the issue, explaining that the increase in the cost of living could lead the Government to bet on an increase between 20% and 25%.

How much does the increase represent?

With a 20% increase, the legal minimum wage in force for the year 2023 would reach 1.2 million pesos, but the transportation allowance (today at 117,172 pesos), would move to 140,606 pesos; that is, a total of $1,340,606. While if it were 25% the salary would stand at $1,250,000, the transportation allowance at $146,465 for a total of $1,396,465.

Source: AS Colombia.

https://colombia.as.com/actualidad/salario-minimo-2023-cuanto-podria-subir-y-cuales-son-las-previsiones-n/#:~:text=With%20a%20increase%20of%2020,a%20total%20of%20241,340,606.