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FAQs on Minimum Wages in Colombia

by Khushi Mehta — last modified Feb 14, 2012 10:14 AM

 

FREQUENTLY ASKED QUESTIONS MINIMUM WAGES AS PER LAW
Is there a separate minimum wage legislation in Columbia? "There is no separate legislation. However, there is provision on MW under Article 53 of the Constitution of Republic
of Colombia for equal opportunities for minimum wages and the relevant is in Colombia’s Substantive Labor Code of
1950 (amended 2006). The main regulations concerning MW are articles 145 to 148 of the Labor Code. "
Do one or more minimum wage/s, exists in your country? There is only one legal minimum wage in Colombia. (refer to decree no 4834 of 2010)
If yes (to question 2), at what level are minimum wage determined? There is only one legal minimum wage in Colombia. (refer to decree no 4834 of 2010)
On what basis is/are minimum wage/s declared? The Latest Decree No 4834 of 2010 declares a monthly legal minimum wage rate
In case of daily/weekly/monthly minimum wage, are number of working hours considered while fixing minimum wage? As per article 161 of the Labour Code, the maximum duration of a normal working day is 8 hrs a day or 48 hrs a week.
As per Article 147 of Labour Code, workers who work for less than normal working hrs, minimum wage will apply in
proportion to number of hrs actually worked
Who all are involved in setting minimum wages "According to article 2 of Act 278 of 1996, the Standing Committee on Labour and Labour Wage Policy will have to establish
in concerted manner the general minimum wage, taking into account factors that should ensure a decent quality of life for
workers and their families. As per article 5 of Act 278 of 1996, the Standing Committee on Labour and Wage policy is a
tripartite committee. 1. The Minister of Labour and Social Security.2. The Minister of Finance 3 Economic Development
Minister 4. The Minister of Agriculture 5. The Director of the National Planning Department. Association Banking and Financial
Institutions of Colombia (ASOBANCARIA), National Business Association of Colombia (ANDI),National Retail Federation
(FENALCO), Association Colombian Micro, Small and Medium Enterprises (ACOPI) and Agricultural Society of Colombia (SAC)
(refer to Decree no 4834 of 2010). Central Confederation of Workers (CUT), Confederation of Workers Colombia (CTC),
General Labour Confederation (GTC), (refer to Decree no 4834 of 2010). according to article 5 of Act 278 of 1996, also calls
for One (1) representative of the pensioners, and One (1) representative for the unemployed "
How are upratings (adjustments) of minimum wages decided upon? AS per article 147 (2) of the Labour Code and Article 8 of Act 278 of 1996 the permanent commission, i.e. Standing Committee
on Labour and Labour Wage Policy (tripartite committee), should fix minimum wage every year, before or on 30th Dec. If the
committee does not reach a consensus till that time, then Government can announce the minimum wage unilaterally
Which are the components of minimum wages in your country? Referring to the latest legal minimum wage announced by the Government of Colombia, through Decree no 4834 of 2010,
minimum wage rate is a single fixed component.
How frequently is the fixed component of MINIMUM WAGE updated? As per Article 8 of Act 278 of 1996, the minimum wage is updated once a year, on or before December 30 each year.
As per article 147 (2) of Labour Code also says the same.
What are the yardsticks on which minimum wage revisions are based? As per 8 of Act 278 of 1996, in setting the minimum wage the considered parameters are (1) inflation target for next year
fixed by Board of Bank of Republic, (2) products agreed by tripartite committee that coordinates productivity of Ministry of
Labour & Social Security, (3) the contribution of wages to national income, (4)the increase in gross domestic product (GDP)
and (5) consumer price index. As per article 146 (1) of Labour Code, minimum wage should take into account cost of living,
work patterns, economic capacity of businesses and employers, and conditions of each region and activity. As per
article 146 (2) of Labour Code, minimum wage for farm workers should take into account facilities the employer provides
its employees in regard to room, crops, fuel and similar circumstances that reduce the cost of living.
What is the national poverty line? (In national currency) National Poverty line is 844,152 pesos (source: Departamento Administrativo Nacional de Estadística)
How often is poverty line updated? It is updated according to the results of the annual Gran Encuesta Integrada de Hogares (GEIH)
When was poverty line last updated? (Specify YYYY/MM) 2010/04 (source: Departamento Administrativo Nacional de Estadística)
What is the percentage of minimum wage relative to the current poverty line? 68.29% - Calculation method: (Minimum wage/Poverty line)*100. Source: Departamento Administrativo Nacional de Estadística
What is the incidence of minimum wage (s) in the national labour force (wage earners only)? Below 15 per cent of the working force. Source: Gran Encuesta Integrada de Hogares (GEIH)
Who all regulate minimum wage compliance? As per article 485 of Labour Code, monitoring and enforcement of the rules and provisions of this Code is exercised by Ministry
of Labor. As per Article 29 of Decree 205 of 2003 , The Special Unit for Labour Inspection, Vigilance and Control ensures
compliance with labour legislation.
Which legal sanctions can be applied if compliance is lacking? As per Article 41 of Decree 2351 of 1965,failure to comply with labour legislation results in fines of between one and one
hundred times the current minimum wage rate.
Are employer and/or trade union representatives involved in compliance procedures? As per Article 29 of Decree 205 of 2003 , The Special Unit for Labour Inspection, Vigilance and Control ensures compliance with
labour legislation.
To whom/where can individuals complain, if they think they are earning less than minimum wages? As per Article 30 of Decree 205 of 2003, the Directorate General of Inspection, Supervision and Control of Labor has to address
the issues related to social protection, work and employment. The contact details of the Directorate of each territory is available
at (Source: http://www.minproteccionsocial.gov.co/entidadesTerritoriales/Lists/Directorio%20de%20Directores%20y
%20Coordinadores/AllItems.aspx?View={EC093082-3A3D-4065-8E54-12553935B110) Civil Court - As per article 11 of Decree
2351 of 1965, Claims of workers for wages belong to first class set out on Article 2495 of Civil Code and Workers' claims can be
proved by any mode of proof authorized by law and, where necessary, intervention produced extrajudicial with labor judge or competent labor inspector

 

 

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