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Colombia - Minimum Wages - 2011


LAST UPDATE

7 November 2011

SOURCES


Name of Act

Law No. 50 of 1990 (Ley No. 50 de 1990, diciembre 28).

Name of Act

Labour Code (Codigo del Trabajo), Decree No. 2663, of 5 August 1950 as amended up to Law No. 1468 of 30 June 2011.
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Name of Act

Law No. 278, concerning the Permanent Commission on the Harmonization of Wage and Labour Policies (Comisión Permanente de Concertación de Políticas Salariales y Laborales), of 30 April 1996, as amended.

Name of Act

Decree N. 205, concerning the operation and structure of the Ministry of Social Protection (Por el cual se determinan los objetivos, la estructura orgánica y las funciones del Ministerio de la Protección Social y se dictan otras disposiciones), 3 February 2003, Diario Oficial No. 45.086.

Name of Act

Decree No. 4834 of 30 December of 2010 as amended through Decree n° 033 of 11 January of 2011.
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LEGAL DEFINITIONS


Employee/worker

"Worker" shall mean any natural person rendering a service under the subordination of another person, natural or legal, and in exchange of remuneration.
Labour Code Art.22

Employer

"Employer" shall mean any natural or legal person who receives and remunerates the service rendered by a worker.
Labour Code Art.22

Wage

"Wage" shall mean not only the ordinary remuneration, but all that the worker receives in cash or in kind as a direct compensation for the service rendered.
Labour Code Art.127

Minimum wage

"Minimum wage" shall mean the minimum remuneration that all workers are entitled to receive to ensure them and their families a decent quality of life in the material, moral and cultural level.
Labour Code Art.145

MINIMUM WAGE FIXING


Procedure


Government decides after tripartite or bipartite body discussions/recommendations

The minimum wage is set by the Permanent Commission on the Harmonization of Wage and Labour Policies (Commission) through an Executive Decree. If the Commission cannot reach a consensus each year as of December 30, the government shall fix the minimum wage.
The Commission is a tripartite institution made up of five government representatives, five workers’ representatives and five employers’ representatives.
Labour Code Art.147
Law No. 278, concerning the Permanent Commission on the Harmonization of Wage and Labour Policies Art.8

Minimum wage set through decentralized collective bargaining

Minimum wages can also be set by collective agreement and they cannot be lower than the legal minimum wage.

The legislation provides that when collective agreements apply to more that two-thirds of workers of an industry in a specific economic region, the Government may extend the application of the collective agreement, partially or fully, to other companies within the industry in the same region if there is no other collective agreement providing more favourable conditions in those companies.

When a collective agreement has been executed by a trade union that represents more than one third of workers of a company, the provisions of the said agreement shall extend to all workers in the company, regardless of whether they are affiliated.
Labour Code Art.147,471,472

Criteria


Needs of workers and their families

Yes - The minimum wage shall assure a decent quality of life for the worker and for his family in the material, moral and cultural level.
Labour Code Art.145,146
Decree n° 4834 as amended through Decree n° 033 Recitals

Cost of living

Yes. In order to fix the minimum wage it shall be taken into account the cost of living of each region.
Labour Code Art.146(1)

Level of wages and incomes in the country

Yes. In order to fix the minimum wage it shall be taken into account the contribution of the wages to the GDP.
Law No. 278, concerning the Permanent Commission on the Harmonization of Wage and Labour Policies Art.8 Paragraph II

Productivity

Yes. In order to fix the minimum wage it shall be taken into account the productivity of the country.
Law No. 278, concerning the Permanent Commission on the Harmonization of Wage and Labour Policies Art.8 Paragraph II

Capacity of employers to pay

Yes. In order to fix the minimum wage it shall be taken into account the economic capacity of the undertakings and employers.
Labour Code Art.146(1)

Inflation rate

Yes. In order to fix the minimum wage it shall be taken into account the inflation rate.
Law No. 278, concerning the Permanent Commission on the Harmonization of Wage and Labour Policies Art.8 Paragraph II

Other provisions

In order to fix the minimum wage it shall be taken into account the conditions of each region and activity.
Labour Code Art.146 (1,2,3)

Coverage


Scope

All workers in the private sector are covered by the minimum wage legislation. One basic minimum wage applies to both urban and rural workers.
Labour Code Art.1, 4
Decree n° 4834 as amended through Decree n° 033 Art.1

Specific minimum wage rates


» Specific minimum wage by occupation

Relevant provisions on minimum wage by occupation have not been identified.

» Specific minimum wage by sector

Relevant provisions on minimum wage by sector have not been identified.

» Specific minimum wage by region

Relevant provisions on minimum wage by region have not been identified.

Level


Minimum wage level(s) in national currency

535.600,00 pesos per month.
Decree n° 4834 as amended through Decree n° 033 Art.1
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Last minimum wage update

11 January 2011
Decree n° 4834 as amended through Decree n° 033 Art.1

In-kind allowances

In-kind allowances are permitted as a part of the remuneration and may consist in the provision of food, accomodation or garments to the worker or his family.

These allowances shall be expressly provided in the contract of employment and not constitute more than the 30% of the minimum wage.
Labour Code Art.129, 146(2,3)

Rate of payment


» Monthly

The legislation provides the minimum wage rate per month.
Decree n° 4834 as amended through Decree n° 033 Art.1

Scheduled frequency of adjustment

The minimum wage is adjusted once a year, not later than 30th December of each year.
Law No. 278, concerning the Permanent Commission on the Harmonization of Wage and Labour Policies Art.8 Paragraph II

Enforcement mechanisms


Labour inspection

The Special Unit for Labour Inspection, Vigilance and Control executes measures of prevention, inspection, monitoring and control in the whole territory of the country, with the aim of ensure the compliance with labour legislation in the private and public sector.
Decree N. 205, concerning the operation and structure of the Ministry of Social Protection Art.29

Fines in national currency for non-respect of legislation

Failure to comply with labour legislation results in fines of between one and one hundred times the current minimum wage rate depending on the seriousness of the offence.
Law No. 50 of 1990 Art.97

Results generated on: 31st July 2014 at 21:36:01.
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