Colombia hikes 2026 minimum wage up nearly 23%

Colombia's government will raise the country's minimum wage to 1.75 million pesos per month ($470), President Gustavo Petro said on Monday (December 29), a 22.7% increase.

The new minimum wage, which applies to around 2.5 million workers across the Andean nation, will come into effect in 2026.

The hike more than doubles the 9.54% increase made this year, which brought minimum wages to 1.42 million pesos ($380), and marks the leftist administration's last minimum wage hike before elections are held at the end of May 2026.

It also surpasses predictions for next year's inflation, which central bank economists have estimated at 3.6%, down from the 5.1% projected for this year. Petro acknowledged the measure would put pressure on inflation.

The new minimum wage was announced by decree after no agreement was reached between business associations and trade unions.

Petro also announced an additional transport subsidy for workers earning up to two minimum wages a month, which combined with earnings will bring workers' total minimum remuneration to 2 million pesos ($541) per month.

Production: Herbert Villarraga, Javier Andres Rojas, Gloria Lopez/Reuters