.jpg?w=150&resize=150,150&ssl=1 "Rixi Moncada")
Colombia's president, Gustavo Petro, formalized a 9.54% increase in the country's minimum wage through a decree signed this Tuesday. Starting January 1, 2025, the minimum wage will increase from 1,300,000 pesos to 1,423,500 Colombian pesos, equivalent to approximately $322. This decision has resulted in a lack of consensus among the government, unions and employers, and marks a new chapter in the country's wage policy.
During a public event in Zipaquirá, when he participated in the traditional Novena of Aguinaldo, Petro characterized the increase as a significant progress in improving the living conditions of Colombians whose income is tied to the minimum wage. Rodeado de conocidos y vecinos del barrio Bolívar 83, a place with personal meaning for him, the president made the importance of the adjustment as a tool to fight poverty and promote economic growth.
Raising the minimum wage is not without criticism, especially from the corporate sector. Bruce Mac Master, president of the National Association of Entrepreneurs of Colombia (ANDI), expressed his concern about the possible economic repercussions of the Middle Ages, advising of its “great consequences”. Petro responded firmly to these observations, qualifying Mac Master's statements as “a profound mind.” According to the president, the wage increase will contribute to the country's economic growth, estimating the idea that economies prosper through the casualization of work.
“It is with dignified workers and not with conditions of esclavitud that a country advances. The minimum wage helps the economy grow,” Petro stated in his speech, defending that the adjustment is not only fair, but also strategic for Colombia's economic development.
The announcement of the decree came a day after the Government and the unions did not receive recognition regarding the wage increase. Before the consensus, the Petro administration decided to define the increase unilaterally, underlining the need to make decisions to guarantee a fair entry for workers.
In defense of regulation, the president also dismissed progress made in controlling inflation. Según Petro, Colombia will close the year with general inflation of 5% and food inflation of 2.7%, which represents one of the largest reductions in this category within the member countries of the Organization for Co-operation and Economic Development (OECD).
“We hope that next year's inflation will be at 3%, which means that the minimum wage increase will tend towards a real increase of 6.54%,” Petro explained, underlining that this is the third wage increase lowest in real terms during his rule. According to the mandate, this policy holds the key to reducing poverty and friendship indices in the country.
The announcement of the increase comes against a backdrop of economic and social challenges for Colombia, where the minimum wage is a central topic in discussions on social justice and economic development. With this justice, the country is in a different position than other Latin American nations, many of which face similar debates regarding the relationship between wages, inflation and productivity.
The decree signed by President Petro not only establishes a new minimum wage, but also reflects a political approach centered on better working conditions as a driver for economic growth. Although the medicine has generated controversy, the government maintains the position that this wage policy will strengthen the domestic economy and contribute to greater social equity.
In Petro's words, “subject to the minimum wage is a policy that sacrifices people from poverty and improves their living conditions. This is a step for a more just Colombia.”
