The Council of State provisionally suspends the effects of Decree 1469 of 2025, until it issues a final decision on its legality.
The 2026 minimum wage increase generated immediate fiscal, financial, and labor impacts requiring prompt and strategic action. The recent provisional suspension of Decree 1469 of 2025 introduces new legal and operational uncertainty for employers, employees, and the broader public. These developments will shape the next phase of regulatory and economic decision making.
In an order issued today, the Council of State (Consejo de Estado) granted a precautionary measure ordering the provisional suspension (suspensión provisional) of the effects of Decree 1469 of December 29, 2025, while it conducts a substantive review of its legality. The suspension arises amid significant public concern regarding the 23.7 percent minimum wage increase for 2026.
In its preliminary analysis, the Council concluded that the Decree prima facie violated Article 8 of Law 278 of 1996 (Ley 278 de 1996). The Court found that the Government’s justification departed from the statutory parameters governing unilateral minimum wage setting. Article 8 imposes a mandatory and non discretionary duty to provide sufficient reasoning when the Executive exercises its authority to fix the minimum wage unilaterally. Although the administrative act referenced the legal criteria set forth in Article 8, it failed to articulate in a concrete, structured, and verifiable manner how each statutory variable, individually or collectively, justified the specific percentage increase ultimately adopted. In short, the Court signaled that citation of legal factors is not enough. The Executive must demonstrate a direct and reasoned linkage between statutory indicators and the final figure imposed.
The Council of State also established clear rules regarding vested rights. Salaries already paid prior to the suspension remain unaffected. The measure does not operate retroactively. In addition, the Court outlined a transitional roadmap pending a final ruling on the legality of Decree 1469 of 2025. The Government must issue a new determination of the increase percentage, this time strictly adhering to the indicators mandated by Article 8 of Law 278 of 1996.
Regardless of the ultimate decision on the merits, the ruling underscores a fundamental principle. The determination of the minimum wage is a matter of profound legal, economic, and social consequence. A unilateral adjustment by decree is not a discretionary act. It is a regulated power subject to constitutional and statutory constraints. It demands technical, concrete, and verifiable justification.
