Implications of a suspended minimum wage hike

COLOMBIA - In Brief 13 Feb 2026 by Andrés Escobar Arango

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The State Council, one of Colombia’s high courts, issued a ruling on February 13th, suspending the effects of Decree 1469, issued by the Petro administration on December 29th of last year. In other words, the State Council has decided to suspend the 23% increase in the minimum wage. This ruling comes after carefully considering the numerous challenges submitted at the State Council regarding the hike. The high court agreed with the argument that, with a 5.3% inflation and a productivity increase of 0.91%, it is not straightforward to conclude that a 23% increase is warranted; the fact that the increase exceeded even the 16% asked by the unions was also mentioned. The original Government justification was that 23% was needed to bring the minimum wage to the so called “vital minimum”, a level appropriate for consuming the bare minimum for a family of four. However, that level does not contemplate that a family of four could have two breadwinners earning the minimum wage. It is important to note, however, that the State Council is not suspending the decree because it thinks 23% is disproportionate; the suspension has to do with the lack of a proper justification. That is why the ruling gives the government eight days to produce a new decree with a solid basis that justifies the minimum wage increase. Can the Petro administration disobey the decree? We do not think he is willing to play that dangerous game. Can the new decree, with more solid foundations, decide on a lower minimum wage increase? Yes, but we don’t think president Petro is going to be so tame. Therefore, the most likely outcome is a new decree, with a different justification, insisting on the 23%. It is, in ...