2025: A Year of Labour Reforms and Transformation
The year 2025 presents significant challenges for the private sector, defined by key changes and challenges, such as the implementation of the pension reform and the advancement of the labour reform in Congress. Moreover, the enactment of updates to the Labour Procedural Code and progress in regulations to prevent workplace and sexual harassment in Colombia are anticipated.
On the other hand, health reform undergoing the legislative process will bring significant changes to how health professionals are contracted and how populations contributing to the social security system are cared for.
These changes will bring a landscape filled with challenges and opportunities for employers who must closely monitor their enforcement and assess impacts on their organisations. Below is an outline of the key labour-related developments we anticipate will shape the first half of the year:
Wage Increases and key reference values for the year 2025
On 9th January 2025, the National Administrative Department of Statistics (DANE by its acronym in Spanish) reported that the annual Consumer Price Index (IPC by its initials in Spanish) variation for 2024 was 5.20%.
This index reflects the behaviour of the average cost of goods and services in the household basket, making it a key metric for determining annual increases in product prices and annually adjusted tariffs.
These figures gain particular significance when compared to the minimum wage increase established by the Government through Decree 1572 of 2024. This decree set the minimum wage for 2025 at ONE MILLION FOUR HUNDRED AND TWENTY-THREE THOUSAND FIVE HUNDRED COLOMBIAN PESOS (COP 1.423.500), reflecting a 9.50% increase over the 2024 minimum wage. This represents a real increase of 4.36% in addition to the IPC.
In Colombia, it is important to highlight the existence of a legal minimum wage, which must be paid in proportion to the maximum legal working hours. For 2025, the maximum working week will remain at 46 hours during the year’s first half and will be reduced to 44 hours per week starting July 15, impacting the payroll configurations and overtime payments.
While no specific regulation mandates private sector employers to increase the wages of employees earning above the minimum monthly wage, there is a legal precedent recognising the mobility of workers’ income. Therefore, employers in Colombia should assess wage adjustment policies based on their companies’ economic conditions and agreements reached with employees. In this context, the IPC serves as a crucial reference indicator.
For workers earning the minimum wage of the integral minimum wage, the mandatory increase for 2025 will be 9.50%. The reference values for these wages in 2025 are as follows:
| CONCEPT |
VALUE (COP) |
| Minimum Legal Monthly Wage in Force (SMLMV) |
$1.423.500 |
| Legal Transportation Allowance – Digital connectivity assistance |
$200.000 |
| MLMW + Legal Transportation Allowance |
$1.623.500 |
| Minimum Daily Wage* |
$47.450* |
| 2 MLMW (Reference for Endowment and Legal Transportation Allowance) |
$2.847.000 |
| Full Integrated Minimum Wage (13 SMLMV) |
$18.505.500 |
| Social Security Cap (25 SMLMV) |
$35.587.500 |
| Amount of Total Salary to be recognised with IBC in contribution ceiling Social Security |
$50.839.286 |
| Regular Hour Value (Maximum Legal Workday of 46 hours per week) |
$6.189 |
| Night Surcharge |
$2.166 |
| Day Overtime |
$ 7.736 |
| Night Overtime |
$ 10.831 |
| Sunday Surcharge (under conditions of Article 179 of the Labour Code) |
$ 4.642 |
*This does not include payment for mandatory rest breaks.
Labour Reforms
On 16th October 2024, the House of Representatives Plenary approved Labour Reform—Bill 166/23C during its second debate. The Government announced that the legislative process will continue in 2025.
When debates on this reform bill resume before the Senate’s Seventh Commission, it will still need to undergo two additional debates and be signed by the President of Colombia to become law. Below are the key changes proposed by this reform, along with their potential impact:
1. Employment contracts: Workers should preferably be hired under a long-term contract. If fixed-term contracts are used, their total duration, including all extensions, may not exceed four years.
2. Disciplinary Due Process: Prior to any sanction or dismissal, a formal process must take place in which workers have the right to be advised and accompanied by lawyers. During the disciplinary process, the employer must, at a minimum: a) formally notify the worker of the process initiation; b) inform the worker in writing of the conduct or omissions leading to the process; c) share all evidence supporting the allegations. Additionally, the employer must allow the worker a period to respond to the allegations, challenge the evidence presented, and provide any evidence they deem necessary for their defence. Finally, the worker will have the option to appeal the decision.
3. Apprenticeship Contracts: The proposed reform reclassifies apprenticeship contracts as employment contracts, granting apprentices the same rights as regular workers. This means apprentices will be included in the companies’ headcount.
4. Implementation of New Leave: The reform proposes the introduction of paid leave for several situations, including:
- Attendance at scheduled or urgent medical appointments.
- Specific conditions such as disabling menstrual cycles, menstrual pain, endometriosis, and others.
- Fulfilment of obligations related to minor children or family members.
- One paid rest day every six months for workers who certify using bicycles as their means of transportation.
5. Disabled workers: Companies with 100 or more employees will be required to hire at least one person with a disability or a disability pension. However, companies may voluntarily exceed this minimum requirement. This obligation is estimated to encourage approximately 25.681 companies to hire up to 141.724 people with disabilities.
6. Maximum Legal Working Hours: Law 2101 of 2021 outlines a gradual reduction of the maximum working week, decreasing from 48 hours (effective until 15th July 2023) to 42 hours by 15 July 2026.
Reform of the Labour Procedural Code
In December 2024, the Congress of the Republic approved the new Labour and Social Security Procedural Code, a regulation that sets forth the new rules for resolving judicial disputes between employers and workers, including matters related to social security.
This reform of the Code, consisting of 331 articles, aims to modernize and streamline procedures, unify jurisprudence, and adapt the administration of justice to contemporary needs. The main innovations introduced by the Code include:
- New procedures to address disputes over privileges, stability, and other related issues.
- Introduction of the possibility of early rulings.
- National redistribution of cases to balance workloads and reduce congestion in judicial offices.
- Implementation of more flexible rules for appeals and their effects.
It is important to bear in mind that judicial proceedings initiated before the implementation of the new code will remain subject to the previous procedural rules.
