ARTICLE
6 February 2023

Looking Ahead In 2023 – Columbia

LG
L&E Global
Contributor
L&E Global is spanning the globe and our member firms are ideally situated to provide clients with pragmatic, commercial advice necessary to achieve their objectives, wherever they operate. L&E Global’s members work closely with corporate, legal, human resources departments and corporate executives across a variety of sectors and industries to address the strategic and tactical issues that arise in the workplace
In 2023, it is important to accentuate that important changes in Labour and employment are expected due to the new government bill proposals that will likely be issued in the first semester of 2023.
Colombia Employment and HR
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2023: The Year Ahead For Employers

In 2023, it is important to accentuate that important changes in Labour and employment are expected due to the new government (left wing) bill proposals that will likely be issued in the first semester of 2023.

2023: The Year Ahead for Employers highlights the legislation, litigation, regulation, and trends nationwide that will impact businesses in 2023.

At the start of a new year, private sector employers will face new challenges and will have to comply with various labour-related obligations. Here are the most relevant ones:

  1. Wage increase: The minimum wage for the year 2023 was set at $1,160,000 (COP) by Decree 2613 of 28 December 2022. This increase must be taken into account for workers who were earning the minimum wage, for those who in 2022 earned a monthly salary between $1,000,000 (COP) and $1,160,000 (COP), and also for workers who earn a full integrated minimum salary, which for 2023 is set at $15,080,000 (COP).

For those workers whose remuneration is not structured on a minimum wage (legal or conventional), and whose increases are not determined by a collective agreement salary adjustment for the year 2023 should be made according to the circumstances of each company, without a mandatory CPI (Consumer Price Index) increase. The key in such cases is to ensure that salary bands do not overlap and to maintain consistency between job responsibilities and corresponding remuneration, in addition to considerations such as market conditions, talent retention, recognition of achievements or results.

  1. Increase in transport allowance: The transport allowance for this year 2023 is $140,606 COP, as established by Decree 2614 of 28 December This amount must be recognised for workers earning up to 2 times the Minimum Legal Monthly Wage in force,

i.e., whose salary is up to $2,320,000 COP per month.

Thus, the reference values for the year 2023 are as follows:

CONCEPT

VALUE

Minimum Legal Monthly Wage in Force (MLMWF)

$1.160.000 COP

Legal transport allowance

(Transp. Allowance)

$140.606 COP

MLMWF + Transp. Allowance

$1.300.606 COP

Basic Minimum Hour Value (until July 2023)

$4.833 COP

2 MLMWF

(Reference for provisioning and Trasnp. Allowance)

$2.320.000 COP

13 MLMWF

(Minimum Integrated salary)

$15.080.000 COP

25 MLMWF

(Social Security Cap)

$29.000.000 COP

  1. Apply the tax reform that was sanctioned by Law 2277 of 2022 as of 01 January 2023, making the corresponding payroll
  1. Prepare and report to the Ministry of Labour and the Occupational Risks Administrator the self-assessment of the OSHMS (Occupational Health and Safety Management System) as of 31 December 2022 and the improvement plan for the year 2023, as established in Resolution 0312 of 2019.
  1. Report the variation in the number of employees for the regulation of the apprentice quota in the periods July and January or March and September.
  1. Pay on January workers 2022 interest rate over the unemployment severance
  1. Deposit the 2022 severance payment before or on 14 February on the severance funds to which the workers are affiliated.
  1. Recognise statutory service bonuses on 30 June and 20
  1. Reduce the weekly working week to 47 hours from July 2023. This entails the revision of internal work regulations, employment agreements and possible adjustment of work
  1. Order periodic occupational
  1. Deliver working clothes and footwear allowance on 30 April, 31 August, and 20 December, to all employees that earn up to twice the minimum wage, appropriate to the work performed by the employee.
  1. Congress is currently studying a bill proposal to return to the night shift from 6 pm to 6 am and to increase Sunday work surcharge.
  1. The Government has announced the intention to create substantial restrictions over the possibility to contract outsourcing services and independent contractors, especially for services related to core business activities.
  1. Employers need to be aware of new employment and labour law regulations, according to the New Government objectives, that once are implemented they need to be undertaken in the workplace in compliance with the Labour Reform Act to be expected in the upcoming months.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
6 February 2023

Looking Ahead In 2023 – Columbia

Colombia Employment and HR
Contributor
L&E Global is spanning the globe and our member firms are ideally situated to provide clients with pragmatic, commercial advice necessary to achieve their objectives, wherever they operate. L&E Global’s members work closely with corporate, legal, human resources departments and corporate executives across a variety of sectors and industries to address the strategic and tactical issues that arise in the workplace
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