Colombia Announces Significant Minimum Wage Increase for 2025

In December 2024, the Colombian government announced an increase to the minimum wage for 2025. The new monthly minimum wage has been set at COP $1,423,500, excluding the transportation subsidy.

With the transportation subsidy of COP $200,000, the total compensation workers must receive is COP $1,623,500 per month. This adjustment will apply to all workers covered under the minimum wage regulations, including domestic workers.

Base Salary: COP $1,423,500

Transportation Subsidy: COP $200,000

Employer Contributions to Social Security:

Health: COP $120,998

Pension: COP $170,820

“Caja de Compensación” Benefit Fund: COP $56,940

Occupational Risk Insurance (ARL): COP $7,431

Social Security Contributions

Both employers and employees are required to make social security contributions. These payments ensure compliance with Colombian labor laws and protect workers’ rights to healthcare, pensions, and other benefits.

Employer Contributions

Employers must contribute the following amounts monthly:

Health: COP $120,998

Pension: COP $170,820

“Caja de Compensación” Benefit Fund: COP $56,940

Occupational Risk Insurance: COP $7,431

Employee Contributions

Employees are also required to contribute to their social security, with deductions made from their salaries:

Health: COP $56,940

Pension: COP $56,940

These contributions must be paid punctually to avoid penalties and ensure adherence to Colombian labor regulations.

Impact on Domestic Workers

The revised wage structure applies to both full-time and part-time employment arrangements for domestic workers.

Daily Wage for Part-Time Domestic Workers

Domestic workers employed daily will receive COP $54,117 per day in 2025. This figure includes the proportional amount of the monthly transportation subsidy. However, the transportation subsidy is not applicable for live-in workers, which may reduce the total cost for employers while maintaining the base salary.

Monthly Wage for Full-Time Domestic Workers

Full-time domestic workers will earn a base salary of COP $1,423,500. When factoring in the transportation subsidy, the total payment due to the worker rises to COP $1,623,500. However, employers must also account for mandatory social security contributions, bringing the total employer cost to approximately COP $2,093,568. This amount includes:

Additional Considerations

Employers hiring live-in domestic workers are not obligated to pay the transportation subsidy. This adjustment reduces the financial burden on employers while maintaining the mandated base salary. All employers are urged to review their payroll systems to ensure compliance with the new wage and contribution requirements for 2025.