Annual minimum compensation

Colombia's annual minimum wage, known as the Salario Mínimo Legal Mensual Vigente (SMLMV), is the legally mandated lowest monthly compensation that employers must pay workers. For 2026, the SMLMV is set at 1,750,485 Colombian pesos, representing a 23.0 percent increase from the 2025 rate of 1,423,500 pesos. This annual adjustment applies to all employees across sectors unless specific collective bargaining agreements or sectoral regulations establish higher rates.

The SMLMV is governed by Colombian labor law and is determined through a formal process outlined in Decree 1469 of 2025. The decree establishes the methodology for calculating yearly minimum wage adjustments, taking into account macroeconomic indicators including the Consumer Price Index (CPI). For the 2026 determination, the government referenced a November 2025 CPI of 5.3 percent as a key input parameter in the calculation framework that ultimately produced the 23.0 percent wage increase.

Employers and payroll teams must ensure that all workers receive at least the applicable SMLMV for their employment period. The minimum wage applies to regular working hours and forms the baseline for calculating other statutory benefits, including severance, bonuses, and social security contributions. Compliance is mandatory regardless of company size or sector, with limited exceptions for apprentices and workers in special regimes. Payroll records must clearly document that compensation meets or exceeds the current SMLMV threshold. Non-compliance exposes employers to administrative penalties and potential labor disputes.