Colombia will lift its minimum wage to 1.75 million pesos in 2026, marking a notable rise that the government frames as a push toward greater equality. The change represents a 22.7 percent increase that will apply to nearly 2.5 million workers nationwide.
President Gustavo Petro argued during a public address that the new rate is intended to broaden access to prosperity and strengthen the financial stability of the majority of Colombian households. His administration views the measure as a crucial step in its broader economic agenda.
The adjustment surpasses last year’s 9.54 percent increase, which elevated the minimum wage to 1.42 million pesos and set the stage for further economic debate. This latest decision arrives as the final wage revision before the national elections scheduled for May 2026.
Inflation projections for next year had been estimated at 3.6 percent, lower than the previous forecast of 5.1 percent, a trend that provides political space for a more ambitious wage policy. Petro nonetheless acknowledged that the increase may exert added pressure on consumer prices.
Economist David Cubides of Banco de Occidente described the expansion as absolutely unsustainable, signaling broad concerns about its long term fiscal implications. He emphasized potential consequences for government payrolls, pension obligations, and the country’s substantial informal labor market.
Forecasts for inflation may need upward revision according to Cubides, who suggested that the current outlook for 2026 and 2027 underestimates future dynamics. Interest rates could face upward adjustments in the medium term if inflation accelerates.
The new minimum wage took effect through a presidential decree after employer organizations and labor unions failed to reach a negotiated agreement. This executive approach underscored the urgency the administration placed on finalizing the increase.
Petro also introduced subsidized public transport fares for workers earning up to two minimum wages to help alleviate daily expenses. That measure means total monthly income for some lower wage earners could approach two million pesos when combined with the wage rise.
