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Fabio Arias habla con gestos frente a un fondo con el logo de la CUT y una bandera de Colombia a su lado.
El dirigente de la CUT Fabio Arias anunció que las centrales obreras propondrán un aumento del 38,5% del salario mínimo para 2027. · CUT

Colombia's CUT will ask for a 38.5% minimum wage increase

The labor federation will take that figure to the negotiation table arguing that 32 points are missing to close the gap with the vital wage.

--- The context --- The discussion over Colombia's minimum wage for 2027 has already begun, and it opened with a figure set to spark enormous controversy: the Central Unitaria de Trabajadores (CUT) labor federation will take a proposed 38.5% increase to the labor negotiation table. The announcement was made by union leader Fabio Arias, a former president of that federation. --- The facts --- According to Arias, workers want to bring that figure to the negotiation table. His argument starts from a gap: according to a study by the union organization itself, an increase of 48 points is needed to reach the concept of a vital minimum wage. He said workers have to enter asking for that because 32 points are still owed to close the gap toward a vital minimum wage. The leader added the expected inflation to that calculation: with this year's inflation expected to end at around 6.5%, the labor federations' opening request stands at 38.5%. He also recalled that the government of Gustavo Petro raised the wage by 23.5% last year and argued that, once inflation is discounted, that increase was equivalent in real terms to about 18%. --- The positions --- Arias insisted the figure is a proposal open to discussion, and said the labor federations will debate and propose a figure they hope will be taken into account. In his reading, the debt owed to workers is measured against the vital minimum wage and not only against the year's inflation. On the other side of the board, the manager of the Banco de la República, Leonardo Villar, warned in Congress this week that the country will very likely miss its inflation target again this year, for the sixth consecutive year. He said, in substance, that the target has not been met in the last five years and very probably will not be met in the sixth either. --- What remains unknown --- Villar also commented on the link between inflation and the minimum wage that the central bank follows closely: he recalled that with inflation at 5% at that time, the minimum wage decreed by President Petro rose 23% and, measured hourly, actually rose 28%. That increase decreed for 2026 was controversial. --- Unanswered questions --- What figure will employers bring to the same table? Will the Government back an increase close to what the unions are asking for, or will it seek a middle point? How much weight will the central bank's warning about the inflation target carry in the negotiation? --- EPM analysis --- The 38.5% proposal is an opening position: the union's own arithmetic presents it as the sum of a historical debt of 32 points plus expected inflation. The negotiation will define how much of that gap is recognized and how much is transferred to payrolls, prices and formal employment. The underlying fact is that the debate no longer turns only on past inflation: the unions want to index the negotiation to a vital wage, and the central bank watches that same link as a risk to meeting its target. 📌 EPM Take: In EPM's view, the 38.5% request puts on the table a reality no formula can hide: Colombia's minimum wage remains far from the income the labor federation itself considers vital, and that 32-point gap is the real center of the negotiation. The talks will do well to discuss that distance with complete numbers, including the cost of closing too quickly a gap accumulated over years, because a serious agreement must improve workers' income without destroying the jobs that pay it.
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