Through Decrees 1469 and 1470 of 2025 (Decretos 1469 y 1470 de 2025), the Government set the statutory monthly minimum wage (Salario Mínimo Legal Mensual Vigente, SMLMV) and the transportation allowance (auxilio de transporte) for 2026. The monthly minimum wage was fixed at COP 1,750,905 and the transportation allowance at COP 249,095. The adjustment represents a 23 percent increase over the prior year and applies as of January 1, 2026.
From the employee’s gross salary, the employer must withhold 4 percent for health contributions in the amount of COP 70,036 and 4 percent for pension contributions in the amount of COP 70,036. Accordingly, an employee earning the statutory minimum wage will receive a net monthly amount of COP 1,859,928, including the transportation allowance.
For its part, the estimate of monthly labour costs for the EMPLOYER in relation to the Current Legal Monthly Minimum Wage – SMLMV 2026 for companies will be as follows:
- Statutory Minimum Wage: COP 1,750,905
- Transportation Allowance: COP 249,095
- Employer Health Contribution 8.5 percent for non exempt employers: COP 148,827
- Employer Pension Contribution 12 percent: COP 210,109
- Occupational Risk Insurance ARL at lowest risk rate 0.52 percent: COP 9,105
- Parafiscal Contributions:
- Compensation Fund Caja de Compensación 4 percent: COP 70,036
- Family Welfare Institute ICBF 3 percent: COP 52,527
- National Training Service SENA 2 percent: COP 35,018
- Monthly Service Bonus accrual Prima de servicios average: COP 166,600
- Severance accrual Cesantías: COP 166,600
- Vacation accrual average: COP 73,013
- Interest on severance: COP 16,809
Total estimated monthly employer cost per employee:
COP 2,712,271.
This figure reflects the full statutory burden for employers not exempt from health, SENA, and ICBF contributions.
- Daily Minimum Wage: COP 58,364
- Ordinary Hourly Rate: COP 7,959
- Daytime Overtime Hour: COP 9,948
- Ordinary Night Hour: COP 10,744
- Night Overtime Hour: COP 13,928
- Ordinary Hour on Rest Days and Public Holidays: COP 14,326
- Daytime Overtime on Rest Days and Public Holidays: COP 16,316
- Ordinary Night Hour on Rest Days and Public Holidays: COP 17,112
- Night Overtime on Rest Days and Public Holidays: COP 20,295
Employers must also provide work clothing and footwear to employees earning up to two minimum wages, three times per year, before April 30, August 31, and December 20.
GALLEGO LAWYERS
- Companies subject to corporate income tax (impuesto sobre la renta y complementarios) benefit from a statutory exemption under Article 114 1 of the Tax Code (Estatuto Tributario). They are not required to pay employer contributions to health, SENA, and ICBF for employees earning less than ten minimum wages.
- The cost calculation above reflects companies that are exempt from employer health, SENA, and ICBF contributions pursuant to Article 114 1.
- Under Law 2101 of 2021 (Ley 2101 de 2021), Colombia continues the gradual reduction of the statutory workweek. As of July 15, 2026, the maximum workweek will be 42 hours without reduction in salary or loss of rights. Employers must adjust the hourly wage calculation accordingly.
