Almost 10 million workers in 22 states will get raises on January 1. See where wages are rising.
CBSDec 30, 2023
Colombia Hikes Minimum Wage by 12%
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Image copyright: Presidencia de Colombia/Flicker via Wikimedia Commons
The Facts
Colombia's Labor Minister Gloria Inés Ramírez has announced that the minimum wage in the country will rise by 12%, or 140K pesos ($36.63), to 1.3M pesos ($340) per month. In 2023, the minimum wage was increased by 16%.
The hike comes after workers, employers, and government failed to reach an agreement despite month-long negotiations. The government accepted the union's proposal despite opposition from employers a day before the legal deadline to set the minimum wage was set to expire.
The Spin
Left narrative
Because inflation is expected to further trend down in Colombia and unemployment has fallen to 9%, this wage increase — as well as a 15% raise in monthly transportation allowance — will help millions of vulnerable citizens nationwide boost their purchasing power.
Right narrative
It's a popular misconception that increasing the minimum wage will benefit low-skilled workers. As this move forces the price of labor up, it ultimately reduces formal job opportunities. Rather than imposing the minimum wage in a nation like Colombia, politicians should be focused on human capital to boost productivity.
