international employment law firm alliance L&E Global
Colombia

Colombia: Adjustment to Pensions Payments Due to Changes this 2024

Published: © 20-02-2024

On 17 January 2024, the Ministry of Labour and Social Security issued Circular 003 which is in accordance with the provisions of Article 14 of Law 100 of 1993, wherein the adjustments to pension payments due to changes of year are indicated as follows:

1. Minimum pension, the minimum monthly pension allowance shall be ($1,300,000).

 

2. For pensions whose monthly amount in the year 2023 is higher than the legal monthly minimum wage in force, the readjustment for the year 2024 will be 9.28% (CPI certified by DANE for the year 2023). In any case, when applying the CPI, if the amount of the monthly allowance is lower than the SMLMV 2024, it must be adjusted to this value.

The maximum limit for pensions of 25 monthly wages means that, if the value of the adjusted pension exceeds the value of 25 monthly wages, it will be adjusted to the ceiling set by the Honourable Constitutional Court in Ruling C-258 of 2013.

 

3. For the purposes of pension readjustment of persons whose pensions were adjusted to 25 minimum wages as a result of Ruling C-258 of 2013 (congressmen and some public servants), Circular 10 of 7 February 2014, issued by the Vice-Ministry of Employment and Pensions, must be applied, which for the year 2014 ordered the pension to be readjusted as follows:

  • The basis for the current year’s CPI adjustment is the value of the pension accrued as of 30 June of the previous year.
  • If the value of the pension is adjusted from this base and the application of the CPI exceeds 25 SMLMV, it will be adjusted to this ceiling.
  • If the value of the adjusted pension is below 25 SMLMV, the pension will correspond to the calculated value.

For additional information on any matter related to labour issues in Colombia, please contact Angélica María Carrión Barrero (Partner) of López & Asociados at angelica.carrion@lopezasociados.net or visit www.lopezasociados.net

For more information, please contact Joseph Granato, Communications Manager at L&E Global at joseph.granato@leglobal.org.