Author: Susana Correa Acebedo- Semi Senior Legal Services Lawyer – susana.correa@ochgroup.co
In order to analyze the implications of the increase in the current legal monthly minimum wage that must be paid to workers in Colombia, it is important to remember that the National Government through Decree 2292 of 2023 sets the minimum wage for the year 2024, and determined that the same will be the sum of ONE MILLION THREE HUNDRED THOUSAND PESOS ($1,300,000).
Additionally, it should be noted that tripartite meetings are held year after year (government, employers, and workers) in order to reach an increase in the current monthly legal minimum wage by consensus if possible, but for this year the discussion did not end with agreement and it was determined unilaterally by the national authorities.
In Colombia there is a regulatory framework that establishes how the minimum wage should be set in Colombia for 2024, which is found in constitutional provisions and specific regulations. On the one hand, article 25 of the Political Constitution enshrines work as a right and a social obligation, enjoying special protection by the state, article 53 establishes the principle of minimum, vital and mobile remuneration in decent conditions, while Articles 333 and 334 outline the social function of the company and the state responsibility in directing the economy.
On the other hand, there is the specific substantial norm found in Law 278 of 1996, in its article 20, which confers on the Permanent Commission for Coordination of Salary and Labor Policies the function of setting the minimum wage, with the objective of ensure decent living conditions for workers and their families, and in article 80 establishes deadlines and procedures, providing for government intervention in case of disagreement.
Jurisprudence, such as Sentence C-815 of 1999 and the position of the Council of State, highlights the need to consider the constitutional protection of work, the minimum vital and mobile remuneration, the social function of the company, and the objectives of management. of the economy when setting the wage increase.
Thus, also taking into account the current economic, political and social context, it is likely that the following situations will arise due to the given increase, which was equivalent to twelve percent (12%) compared to the year 2023:
- There is no increase greater than 5% in real terms of the monthly legal minimum wage, taking into account the inflation presented in the year 2023.
- The increase in the current legal minimum wage has a direct implication in the increase in the value of supplementary work and night and holiday or Sunday work, taking into account that we are still within the application period of Law 2101 of 2021 by which it was regulated. the reduction of the ordinary working day, in which it is established that the salary will not be reduced due to the decrease in the hours worked, which implies the increase in the ordinary hour, which determines the value of the hour of supplementary work , night and holiday or Sunday.
- InAs for employers, it will imply an increase in operating costs and will also impact the following issues:
- Workers who have agreed on a comprehensive minimum wage, that is, the equivalent of 13 minimum wages, must also have their wages adjusted by the same percentage as the minimum wage.
- In accordance with the increase that is determined, those workers who earn up to two minimum wages will have the right to receive an award.
- Those salaries that have been agreed upon as minimum wages in employment contracts must also be readjusted in accordance with the increase that is generated.
Source:
- Substantive Labor Code, Decree 2292 of 2023
