Annual minimum compensation

Colombia's annual minimum compensation, known as the Salario Mínimo Legal Mensual Vigente (SMLMV), is set at 17,082,000 Colombian pesos for 2026. This represents the legally mandated minimum monthly wage that employers must pay to workers across most sectors of the economy. The SMLMV applies to full-time employees and establishes the baseline compensation from which other statutory benefits and contributions are calculated, including social security, pension contributions, and severance provisions.

The rule is established under Colombian labor law and is adjusted annually by decree issued by the Ministry of Labor. Decree 1469 of 2025, the authoritative source for the current minimum wage, determined the 2026 figure based on economic indicators including the Consumer Price Index measured at November 2025, which stood at 5.3 percent. The decree applied a 23.0 percent increase to the 2025 SMLMV of 1,423,500 pesos, resulting in the new 2026 monthly minimum of 1,750,485 pesos, which annualizes to 17,082,000 pesos.

Employers and payroll teams operating in Colombia must ensure all covered employees receive at least the SMLMV for each month worked. This minimum applies regardless of employment classification, though certain sectors and worker categories may have negotiated collective agreements providing higher wages. Payroll systems must be updated annually to reflect the new minimum wage effective January 1st each year. Non-compliance with minimum wage requirements exposes employers to significant penalties and potential legal liability under Colombian labor regulations.