Colombia Announces 22.7% Minimum Wage Increase Amid Economic Concerns

Colombia's government has announced a significant 22.7% increase in the minimum wage, raising it to 1.75 million pesos per month, effective 2026. This decision, impacting approximately 2.5 million workers, was made by decree after business associations and trade unions failed to reach an agreement. The measure aims to reduce inequality and democratize wealth, aligning with the leftist administration's goals under President Gustavo Petro gustavopetro. However, economists have expressed concerns about the economic repercussions of such a substantial increase.