Colombia’s Minimum Wage Rises 9.5% for 2025

By /

It’s official: Colombia’s minimum wage rises 9.5% for 2025

In a significant move aimed at improving workers’ quality of life, President Gustavo Petro officially decreed a 9.5% increase in Colombia’s minimum wage for 2025. 

This change raises the monthly minimum wage from $1,300,000 to $1,423,500. When combined with the updated transportation subsidy, workers earning the minimum wage will now receive a total of $1,623,500.

What does this mean for workers?

After the mandatory deductions for health and pension contributions, employees can expect their biweekly pay to be approximately $746,810. 

It’s important to note that this figure doesn’t include additional earnings from overtime or bonuses for working night shifts.

For those putting in extra hours, here’s a breakdown of the updated rates:

  • Daytime overtime: $7,413 per hour (+25%)
  • Nighttime overtime: $10,379 per hour (+75%)

For a much more complete outlook on the minimum wage increase, we have designed two tables so you can know HOW MUCH IT COSTS TO HIRE AN EMPLOYEE IN 2025,  both for those exempt from contributions and for those not exempt from them. 

And how can you know if you’re exempt from contributions?

Exemption from Parafiscal Contributions and the Health Regime: Who Can Benefit?

In Colombia, there is an important tax relief measure that allows certain companies and employers to be exempt from paying parafiscal contributions and health regime contributions. This measure, designed to promote formal employment, applies under specific conditions explained below:

What contributions are covered by this exemption?

The exemption includes contributions made to:

  • The National Learning Service (SENA).
  • The Colombian Institute of Family Welfare (ICBF).
  • Contributions to the Contributory Health Regime.

Who can access this exemption?

  1. Corporations and legal entities subject to income tax:
    • These entities are exempt from the specified contributions for workers earning less than ten (10) current legal monthly minimum wages (SMLMV).
  2. Natural persons employing workers:
    • They also qualify for the exemption if their employees earn less than 10 SMLMV.
    • Exception: This exemption does not apply to individuals employing fewer than two workers. In such cases, they must continue paying the required contributions.

This measure provides significant savings while encouraging formal employment. If you’re an employer, consult your tax advisor to determine whether you qualify and ensure compliance with the applicable regulations.

Monthly cost for 2025

Employee earning one minimum wage

EMEMPT FROM CONTRIBUTIONS

SALARY1.423.500,00
TRANSPORTATION ALLOWANCE200.000,00
HEALTH-
PENSION170.820,00
ARL (Maximum rate 6,96%)99.075,60
FAMILY COMPENSATION FUND56.940,00
BONUS135.286,26
SEVERANCE135.286,26
SEVERANCE INTERESTS16.234,35
VACATION59.359,95
WORK SUPPLIES100.000,00
TOTAL EMPLOYEE COST PER MONTH$2.396.502,41 COP

Monthly cost for 2025

Employee earning one minimum wage

NOT EMEMPT FROM CONTRIBUTIONS

SALARY1.423.500,00
TRANSPORTATION ALLOWANCE200.000,000
HEALTH120.997,50
PENSION170.820,00
ARL (Maximum rate 6,96%)99.075,60
FAMILY COMPENSATION FUND56.940,00
SENA28.470,00
ICBF42.705,00
BONUS135.286,26
SEVERANCE135.286,26
SEVERANCE INTERESTS16.234,35
VACATION59,359,95
WORK SUPPLIES100.000,000
TOTAL EMPLOYEE COST PER MONTH$2.588.674,91 COP

Reactions to the increase

President Petro emphasized that the wage hike reflects his administration’s commitment to enhancing the living standards of Colombian workers. 

However, not everyone is celebrating. Some business groups have raised concerns about the potential economic repercussions, warning that higher labor costs could lead to job cuts or increased prices for consumers.

The new minimum wage takes effect on January 1, 2025. 

Whether you’re an employer, employee, or just curious about how this change impacts Colombia’s economy, stay informed and plan accordingly!

Get started with a free case assessment ​

What will happen after you fill out this form? ​

After submitting the form, your case undergoes a comprehensive review by our team of specialist to assess its viability. Providing clear and concise information about your objectives accelerates this process.

Subsequently, a specialist will be assigned to your case, reaching out to you within a day to clear up details about your case and outline the next steps to help you achieve your goals.

Please enable JavaScript in your browser to complete this form.

Get started with a free case assessment ​

Please enable JavaScript in your browser to complete this form.

What will happen after you fill out this form? ​

After submitting the form, your case undergoes a comprehensive review by our team of specialist to assess its viability. Providing clear and concise information about your objectives accelerates this process.

Subsequently, a specialist will be assigned to your case, reaching out to you within a day to clear up details about your case and outline the next steps to help you achieve your goals.

Social Media

Connect with us

Phone: (+57) 315 3354174

direccioncomercial@nexo.legal

Calle 11 no. 43b – 50,

Parque Empresarial Calle Once

Oficina 407

Medellín, Colombia

Leave a Comment

Your email address will not be published. Required fields are marked *

plugins premium WordPress
Scroll to Top
Privacy Summary

COOKIE POLICY

1. WHAT ARE COOKIES?

Cookies are small files that are installed on the hard drive or browser of a computer, tablet, smartphone, or similar device with internet browsing capabilities. They help, among other things, personalize the services of the website owner, facilitate navigation and usability, obtain aggregated information about website visitors, enable the playback and display of multimedia content on the website, allow user interaction, and enable tools.

 

2. AUTHORIZATION FOR THE USE OF OWN COOKIES AND CLICKSTREAM TECHNOLOGY

The internet browser automatically collects information about the user's previous activities before accessing our website, such as the search terms used and the browser through which the search was conducted. In order to understand how visitors, use our website and provide them with a better and safer browsing experience, our website may track the pages visited by our users. This information is collected using "Cookies" or Clickstream Technology. By accepting these terms and conditions, the user authorizes the collection of cookies used during their browsing session, according to the conditions and the following:

 

3. AUTHORIZATION FOR THE USE OF THIRD-PARTY COOKIES

This refers to the collection of data on our website for the purpose of compiling statistical information about the user, by storing cookies on the visitor's hard drive. In order to collect and process this information statistically for our website and application, we use the services of Google Analytics, which involves the collection and storage of the aforementioned information.

 

4. AUTHORIZATION FOR COOKIES CAPABLE OF IDENTIFYING THE USER

Only aggregated and anonymous data is stored for the purpose of conducting strictly statistical analysis on the number of visitors and the most visited content, in order to improve the website and enhance the effectiveness of its online presence. Therefore, users, customers, employees, contractors, and partners of the COMPANY acknowledge that they are aware that data collected through the website or mobile applications may be accessed.

 

5. NATIONAL OR INTERNATIONAL TRANSFER OF PERSONAL DATA

The user or customer acknowledges and accepts that the COMPANY may transfer data to other data controllers when authorized by the data subject, by law, or by administrative or judicial order.

 

6. PROCEDURES FOR EXERCISING DATA SUBJECT RIGHTS

The procedures for data subjects to exercise their rights to access, update, rectify, delete information, or revoke their authorization under this policy are detailed in the Data Protection and Data Handling Policy.

 

6.1. PERSONS AUTHORIZED TO EXERCISE RIGHTS:

  • By the Data Subject, who must sufficiently prove their identity using the various means made available by the data controller.
  • By their legal representatives, who must prove such status.
  • By the representative and/or attorney-in-fact of the Data Subject, after proving their representation or power of attorney.
  • By stipulation for the benefit of another or for another.
  • The rights of children or adolescents will be exercised by those authorized to represent them.

 

6.2. RIGHT OF ACCESS:

Frequency: At least once every calendar month and/or whenever there are substantial modifications to the Information Processing Policies that may warrant new inquiries.

 

6.3. UPDATING, RECTIFICATION, AND SUSPENSION

Methods: All inquiries and claims to the COMPANY can be made through the following means:

 

  • Email: direccioncomercial@nexo.legal
  • Physical Address: Calle 11 # 43 B 50, Parque Empresarial Calle 11, Barrio Manila, Medellín, Antioquia.
  • Website: https://nexo.legal/
  • Cell Phone Number: (+57) 3153354174