international employment law firm alliance L&E Global

Colombia: 2023, Looking ahead

In 2023, Looking ahead, we explore the most important trends and developments related to labour and employment law in Colombia.

In 2023, it is important to accentuate that important changes in labour and employment are expected due to the new government (left wing) bill proposals that will likely be issued in the first semester of 2023.

At the start of a new year, private sector employers will face new challenges and will haveto comply with various labour-related obligations. Here are the most relevant ones:

  1. Wage increase: The minimum wage for the year 2023 was set at $1,160,000 (COP) by Decree 2613 of 28 December 2022. This increase must be taken into account for workers who were earning the minimum wage, for those who in 2022 earned a monthly salary between $1,000,000 (COP) and $1,160,000 (COP), and also for workers who earn a full integrated minimum salary, which for 2023 is set at $15,080,000 (COP).

For those workers whose remuneration is not structured on a minimum wage (legal or conventional), and whose increases are not determined by a collective agreement salary adjustment for the year 2023 should be made according to the circumstances of each company, without a mandatory CPI (Consumer Price Index) increase. The key in such cases is to ensure that salary bands do not overlap and to maintain consistency between job responsibilities and corresponding remuneration, in addition to considerations such as market conditions, talent retention, recognition of achievements or results.

  1. Increase in transport allowance: The transport allowance for this year 2023 is$140,606 COP, as established by Decree 2614 of 28 December. This amount must be recognised for workers earning up to 2 times the MinimumLegal Monthly Wage in force,

i.e., whose salary is up to $2,320,000 COP per month.

Thus, the reference values for the year 2023 are as follows:

Minimum Legal Monthly Wage in Force (MLMWF) $1.160.000 COP
Legal transport allowance

(Transp. Allowance)

$140.606 COP
MLMWF + Transp. Allowance $1.300.606 COP
Basic Minimum Hour Value (until July 2023) $4.833 COP

(Reference for provisioning and Transp. Allowance)

$2.320.000 COP

(Minimum Integrated salary)

$15.080.000 COP

(Social Security Cap)

$29.000.000 COP
  1. Apply the tax reform that was sanctioned by Law 2277 of 2022 as of 01 January 2023, making the corresponding payroll.
  1. Prepare and report to the Ministry of Labour and the Occupational Risks Administrator the self-assessment of the OSHMS (Occupational Health and Safety Management System) as of 31 December 2022 and the improvement plan for the year 2023, as established in Resolution 0312 of 2019.
  1. Report the variation in the number of employees for the regulation of the apprentice quota in the periods July and January or March and September.
  1. Pay on January workers 2022 interest rate over the unemployment severance.
  1. Deposit the 2022 severance payment before or on 14 February on the severance funds to which the workers are affiliated.
  1. Recognise statutory service bonuses on 30 June and 20.
  1. Reduce the weekly working week to 47 hours from July 2023. This entails the revision of internal work regulations, employment agreements and possible adjustment of work.
  1. Order periodic occupational.
  1. Deliver working clothes and footwear allowance on 30 April, 31 August, and 20 December, to all employees that earn up to twice the minimum wage, appropriate to the work performed by the employee.
  1. Congress is currently studying a bill proposal to return to the night shift from 6 pm to 6 am and to increase Sunday work surcharge.
  1. The Government has announced the intention to create substantial restrictions over the possibility to contract outsourcing services and independent contractors, especially for services related to core business activities.
  1. Employers need to be aware of new employment and labour law regulations, according to the New Government objectives, that once are implemented they need to be undertaken in the workplace in compliance with the Labour Reform Act to be expected in the upcoming months.