As the new year begins, employers must remain attentive to updates established by the National Government regarding the increase of the minimum wage, transportation allowance, the Consumer Price Index (CPI), and other obligations to be fulfilled within the initial quarter of the year, to ensure complete and timely compliance with these obligations, avoiding potential claims from employees and eventual investigations by labor authorities.
Following these considerations, below we list the percentage increases for the minimum wage, transportation allowance, and Consumer Price Index (CPI) applicable for the year 2024:
- According to Decree 2292 of 2023, the legal minimum wage for the year 2024 will be equivalent to 1,300,000 Colombian pesos per month, reflecting a 12% increase compared to the minimum wage established in 2023.
- Regarding the legal transportation allowance, Decree 2293 of 2023 specifies that the amount for this benefit in 2024 will be 162,000 Colombian pesos per month. (Please note that this allowance is mandatory only for employees whose salary is equal to or below 2 minimum wages per month).
- Finally, the National Administrative Department of Statistics (DANE) confirmed that the Consumer Price Index (IPC) for the year 2023 closed at a rate of 9.28%.
Considering the previously mentioned percentages, it is essential to emphasize that, starting January 1, 2024, employers are required to raise the salaries of employees earning the minimum wage. This adjustment must align with the specified amounts set by Decree 2292 of 2023.
Also, this update should be extended to those employees who earn a minimum integral wage (which, for 2024, will be equivalent to 16,900,000 Colombian pesos per month). Failing to implement this since January 1, 2024, may lead to the risk of employees claiming that, by receiving compensation below the 13 current minimum wages, their salary is essentially ordinary instead of an integral remuneration. Consequently, they may demand the payment of legal social benefits.
Concerning salaries higher than the minimum wage, despite the Constitutional Court's consistent case studies in which they mention that a due and advisable practice is to adjust all salaries considering the Consumer Price Index (CPI) to guarantee income mobility, it is important to highlight that the employment legislation does not explicitly state a mandatory raise of salaries above the minimum wage to align with the CPI. (Although the labor reform bill currently being deliberated by Congress aims to implement a mandatory increase for such salaries, as of now, it has not been approved).
Finally, below are some of the obligations that employers must consider at the beginning of the year 2024:
- Before January 30, interest on legal annual severance pay must be paid (directly to the employee).
- Before February 14, the employer must deposit the legal annual severance pay corresponding to the year 2023 into the fund to which the employee is affiliated.
- From February 1 to March 29, 2024, employers are required to submit the results of their self-evaluation regarding compliance with the minimum health and safety standards to the Ministry of Labor's website.
- Concerning the workweek length, it currently stands at 47 hours per week following the provisions of Law 2101 of 2021. Nevertheless, from July 15, 2024, there will be a decrease to 46 hours per week as outlined in the gradual reduction specified by the law.
