The government, business leaders, and unions agreed to submit a joint proposal to the Council of State to defend the 23.7% increase in the Colombia minimum wage for 2026. The decision comes after the high court provisionally suspended, last Friday, the decree signed in December that had set that historic increase, following a lawsuit filed by the business association Fenalco.
Faced with the risk that the discussion would drag on in the courts and generate further uncertainty, the three parties chose to build a common position supporting the legality and feasibility of the increase, with modifications to be introduced in a new decree at the request of business leaders.
The suspension of the decree changed the tone of the debate. What until a few days ago had been a political standoff between opposing sectors turned into an urgent negotiation to shield the increase from legal challenges, an agreement that surprisingly managed to bring together both government and opposition support.
This Monday, in an extraordinary session of the negotiation table, representatives of the executive branch, business associations, and labor federations closed ranks around a document that will be submitted to the Council of State as the technical and social basis for the increase.
Colombia’s 2026 minimum wage: government, employers, and unions reach agreement
The meeting took place at the Ministry of Labor headquarters, in an atmosphere marked by institutional pressure. The provisional suspension of the decree set off alarms in the productive sector and among formal workers, who had expected the new wage to take full effect in 2026 without disruption.
With the judicial decision, the increase has been put on hold while the Council of State reviews the lawsuits filed against the regulation.
As Labor Minister Antonio Sanguino explained, the consensus reached is based on a clear principle: Respecting the 23.7% increase decreed in December.
The official stated that the Government remains convinced that the hike responds to the need to restore workers’ purchasing power and to boost domestic demand, but acknowledged that it was necessary to strengthen the legal and economic arguments to uphold it before the court.
“Let’s say that all the opinions expressed in this session of the negotiation commission speak in favor of not altering the Colombian labor market and the overall performance of the economy,” the minister specified.
For his part, Finance Minister German Avila explained that a living wage constitutes an acquired right, something that over the weekend appeared to be accepted even by opposition sectors that in December had been highly critical of the increase, which was well above the annual CPI of 5.1%.
Avila maintained that a joint effort had begun among workers, the government, and labor federations, aimed at reaching a pact for life focused on greater equity, social justice, and the reduction of gaps.
Business leaders, who during the original negotiation had warned about the risks of an increase of that magnitude for small- and medium-sized enterprises, agreed to join the joint proposal. Sources from business associations indicated that, beyond the initial differences, the priority now is to provide stability and legal certainty.
In that regard, they believe that a document backed by all parties can offer greater guarantees before the Council of State than fragmented positions.
For their part, labor federations defended the increase as a historic and necessary measure in a context of accumulated inflation and loss of purchasing power.
Union leaders argued that the increase not only corrects wage lags, but also sends apolitical message about the centrality of work on the economic agenda. The willingness of business leaders to support the proposal was interpreted as a sign of institutional maturity.
🇨🇴El salario vital ya fue incorporado en los ingresos de millones de familias y en la planeación de gastos. Cambiarlo ahora afectaría la estabilidad económica y la confianza de trabajadores y empleadores. No es momento de generar dudas.
🧵 pic.twitter.com/dGJ3mOaWGZ— MinTrabajo (@MintrabajoCol) February 16, 2026
From suspension to the construction of legitimacy
The decision by the Council of State to provisionally suspend the decree did not annul the increase, but it did require a review of its foundation.
The high court considered that it needed to analyze more thoroughly the arguments justifying a 23.7% increase, the highest in recent decades. The lawsuits question both the methodology used to set the figure and its potential impact on employment and business sustainability.
Faced with that scenario, the bargaining table chose to turn difficulty into opportunity. The document they will present to the Council of State will include technical justifications regarding productivity, inflation, and social conditions, as well as considerations about the country’s economic context.
The intention is to demonstrate that the increase was not a unilateral decision lacking support, but rather the result of a comprehensive analysis.
Antonio Sanguino emphasized that the government will abide by whatever the court determines, but insisted that the executive will defend the increase with all available arguments.
He also sent a message of reassurance to workers, noting that the purpose of the agreement is to avoid setbacks in the minimum income and provide certainty regarding its implementation.
The outcome now depends on the Council of State. If the high court endorses the joint proposal, the 23.7% increase will stand, and the country will enter 2026 with a new wage floor backed by an unusual tripartite consensus. If it decides to modify or strike down the measure, a new stage of negotiation and political debate will begin.