Yesterday, the Colombian government issued Decree 1724 of December 15, 2021 which set the minimum labor wage in Colombia at an even one million Colombian pesos per month, based on a standard labor week of 48 hours.
The integrated salary, at which rate a worker is considered a professional and subject to fewer labor regulations is $13 million pesos monthly. The IBC maximum, or contribution base income, which is cap on the portion of the salary that is used as the basis for social security and health contributions is 25 minimum wages, or $25 million pesos monthly. The IBC for mandatory pension contributions is $4 million pesos. The transportation subsidy that must be paid by employers to commuting employees who make less than twice the monthly minimum wage is $117,172.
Mandatory contributions are:
|Component||Percentage||Amount based on minimum wage (pesos)|
|Occupational risk (worker’s compensation)*||0.522%||5,300|
|Caja de Compensación (benefit societies)**||0.6% or 2%||6,000 or 20,000|
* The contribution to occupational risks may vary depending on the affiliation rate, which ranges from 0.522% to 6.96%.
** The contribution to the compensation fund is optional for self-employed and can be made at a rate of 0.6% or 2%; For dependents and domestic service it is mandatory and is carried out with a 4% rate.