Jorge Posada of Parra, Rodríguez, Cavelier informs new minimums in Colombia.
The Colombian Government issued decree 2560 of December 18, 1998, regulating the new minimum wage to be in effect in Colombia as of 1 January, 1999 and up to 31 December, 1999. The new wage is in fact an increase of 16,0107% over last year's minimum. In pesos, the increase means that the minimum was raised from Col. Ps. $ 203.826,00 to Col. Ps. $ 236.460,00. The daily minimum is raised from Col. Ps. $ 6.794,20 to Col. Ps. $ 7.882,00. This means that the minimum for "integral" wages is now Col. Ps. $ 3.073.980,00.
Although the minimum wage is clearly an important factor in labor costs for the country, the increase is also significant due to the fact that the Government has indexed many items, including the cost of fines, to the minimum wage.
Additionally, the cost of the transport subsidy that employers must pay workers earning the equivalent of two minimum wages or less was also increased (decree 2658) from Col. Ps. $ 20.700,00 to Col. Ps. $ 24.012,00.
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.
