Most recently, in 2021, Canada`s David Card was one of three Nobel laureates in economics, where Card analyzed the impact of the minimum wage increase on employment in the U.S. state of New Jersey and concluded that the minimum wage increase has no direct impact on the decline in employment. What is a revolutionary theory compared to the one known since the 90s, which suggested that wage increases or higher wages create fewer jobs given the increase in costs or expenses for companies or employers. The minimum wage statistics in Colombia are excellent. It is interesting to see how it has increased year after year and how each time the salary is devalued. Each time, employees are pressured with minimum wages that are not enough for anything. Is it convenient for Colombia to dollarize? Or could it be worse? I have parents who earn minimum wage, and it`s not enough, it`s a difficult situation. Colombian President Iván Duque Márquez has announced that the increase in the minimum wage will be 6%, so that it will remain at 980,657 pesos. Thus, the new legal monthly minimum wage will be COP$877,803, and the new transportation allowance applicable to employees earning up to 2 months of legal minimum wage will be COP$102,854; for a total of $980,657 from the COP. The minimum wage increase for 2022 is 10.07% compared to 908,526 pesos of the minimum wage in 2021 (+91,474 pesos). It came into effect on January 1, 2022, at the same time as the 10.07% increase in the transport subsidy (+10,718 pesos) for people earning up to 2 months of minimum wage.
In total, the increase concerns employees who receive a minimum wage with transportation subsidy + 102,192 pesos. Very good summary or history of the minimum wage in Colombia and transportation assistance. Very useful to have the reference of the regulations and also that you can download the decree that sets the minimum wage for all years. Very good work. Can you imagine Colombia, where companies are free to set the wages of their workers? Unfortunately, Colombia is not a country that is distinguished precisely by being a fair country, on the contrary, if I am not mistaken, it is one of the corructos of the world, the minimum wage is too minimal, it is an echo, but at least it is something fixed and legal, I think it is a reality with which we must live. until someone really comes to power that will move the country towards Not Bad. In some countries of the world, there are minimal differences in the difference between the cost of living and income received and encourage companies to locate or locate in areas where the minimum wage is lower. This is not a new topic and has served many master`s theses on economic issues. The statutory monthly minimum wage and travel allowance apply at national level. Current legal monthly minimum wage and transportation allowances for the year 2020 It is curious that many years ago the value of the minimum wage was fixed, that is, no increase was made every year, as is the case for the years 1950 to 1955 or 1969 to 1971, 1974 to 1975; But on other occasions during the same year, several increases were made, more affected by the variation in inflation.
In any event, it was not until 1979 that the adjustment was made only annually. * Decree 3506 of December 1983 unified the minimum wage for the urban and rural sectors, an association that came into force in 1984. Negotiations on raising the minimum wage in Colombia for 2022 were rooted in the economic situation resulting from the Covid-19 (coronavirus) pandemic, which, due to biosecurity measures, was supposed to stop the spread of the virus and prevent thousands of deaths. has led to a decline in economic activity in many global economies, including Colombia. By 2021, economic activity had picked up, but monetary stimulus and logistical challenges around the world boosted inflation. In this scenario, the parties agreed to increase the minimum wage to a level of one million pesos and by a percentage not seen in nearly 50 years, thinking of preserving the purchasing power of Colombians, especially those with fewer resources. The interprofessional minimum wage (SMI) is the amount of the minimum wage, or the value of the minimum wage, that an employee receives for the legal working day, regardless of the type of contract he has. Unlike previous years, the emergency situation caused by the coronavirus epidemic and therefore COVID-19 was the main factor in this decision.
Throughout the year, President Iván Duque`s actions have focused on reviving the economy, one of the areas hardest hit by the pandemic. The dismissal of thousands of employers and the cessation of various types of activities remained the main argument within the employers` union, which proposed an increase of 2.7% for the minimum wage and 5.5% for transport subsidies, for a total of 1,010,000 pesos. Already today, the minimum wage is set annually by the Standing Committee for Consultation on Wage and Labour Policy, established by Act No. 278 of 1996 but almost never agreed; And finally, it is the government that ends up setting the minimum wage below the number we commonly know as the “decree minimum wage.” How is the minimum wage determined each year in Colombia?: On December 26, the national government issued Decree No. 2360 of 2019, which established the current legal monthly minimum wage (SMLMV), which will apply from 1. January 2020, to the tune of eight hundred and seventy-seven thousand eight hundred and three pesos (877,803 USD). Who is the Commission that negotiates the minimum wage? Given inflation estimated in 2021 at 1.48%, this decision increases workers` real wages.