Colombia’s minimum wage will increase by 9.54% in 2025, President Gustavo Petro announced Tuesday. The wage will rise to 1.4 million pesos ($323.90) per month, up from 1.3 million pesos this year. The hike was enacted by decree after negotiations between the government, business associations, and workers’ unions failed.
This year’s increase is smaller than the 12% raise announced for 2024. Agreements on wage hikes were successfully reached for 2022 and 2023, but no consensus emerged for the 2025 adjustment.
Colombia’s central bank projects annual inflation to end 2023 at 5.3%, with a decline to 3.1% by late 2025. The minimum wage decision aligns with efforts to balance economic pressures in Latin America’s fourth-largest economy.
At an exchange rate of 4,395.44 pesos per U.S. dollar, the new minimum wage underscores ongoing challenges in bridging worker demands with economic realities.
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