Friday, September 29, 2023

How much will the minimum wage increase in 2024? The government spoke about the increase

One of the most important discussions in Colombia, which gains prominence on the public agenda in the last months of each year, is the adjustment of the minimum wage.

Trade unions, business associations and the state government are preparing for weeks of intensive debates in which they want to reach an agreement on the new amount, which will apply from January 1, 2024.

This increase, aimed at “restoring the purchasing power” of workers, is directly linked to inflation, job creation and the value of the elements that make up the family basket.

How much will the minimum wage increase in 2024?

However, despite the fact that there are still more than three months left until the end of the year, there are already rumors about the salary increase, which will directly affect more than 3.5 million Colombians who receive the minimum wage, according to data from the National Administrative Department of Statistics (Dane).

One of the data that has a direct impact on the adjustment of the minimum wage is the consumer price index (CPI), that is, the cost of living of citizens.

Inflation was 11.43% in August this year, marking a decline so far this year but still showing the number is very high.

The government refers to the increase

In the last hours, Deputy Finance Minister Diego Guevara referred to the adjustment of the minimum wage for 2024, which was understood as an anticipation of the position that the government could take in the next discussions.

“I believe that no one will question the increase in the minimum wage because it actually corresponds to what the evolution of inflation shows and is provided for by law so that workers do not lose their purchasing power,” Guevara said.

Likewise, he pointed out that Colombian law provides that the amount from which negotiations start is the inflation figure, plus the productivity and the room for negotiation between the parties.

So what amount are we talking about?

Based on the Deputy Minister’s statements, an increase of 10% is assumed, which would correspond to $1,276,000, without taking into account the transport subsidy.

Nation World News Desk
Nation World News Desk
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