Petro Signs New Minimum Wage Decree After Suspension | Colombia 2026

Colombia’s Petro Reaffirms Minimum Wage Decree Following Council of State Review

Bogotá, February 20, 2026 – Colombian President Gustavo Petro signed a new decree maintaining the country’s minimum wage at 2 million pesos (approximately $500 USD as of February 20, 2026) following a provisional suspension ordered by the Council of State. The move, announced from the Plaza de Bolívar in Bogotá, aims to address concerns raised by the high court regarding the original decree’s technical justifications. The new decree, numbered 0159 of 2026, will be submitted to the Council of State for review, demonstrating the government’s commitment to adhering to legal processes in setting the national minimum wage.

The initial decree, issued in December 2025, had faced legal challenges centered on its methodology. Critics argued that the government prioritized the concept of a “living wage” over traditional economic indicators such as GDP, production levels, and inflation. President Petro, however, has consistently defended the increase as a necessary step to address economic inequality and improve the living standards of Colombian workers. He stated, “The legal monthly minimum wage for 2026 is the same that we decreed in December 2025. We are not backing down, we are signing and delivering it to the Council of State, complying with its orders, accepting and providing the technical studies.”

The revised decree was developed through consultations with the Ministries of Labor and Finance, as well as negotiations with labor unions and business associations. These stakeholders reached a consensus to maintain the 23% wage increase, with the government pledging to explore measures to alleviate the tax burden on businesses. This collaborative approach underscores the government’s attempt to balance the needs of workers and employers in a challenging economic climate. The agreement reflects a delicate balance between social demands and economic realities, aiming to foster sustainable growth and social stability.

Council of State’s Role and Previous Ruling

The Council of State’s initial suspension stemmed from concerns about procedural flaws in the original decree, rather than the amount of the increase itself. According to Alberto Montaña, President of the Council of State, the court did not initially assess the proportionality of the wage hike. “It’s important to clarify that some claims alleged the increase was disproportionate. In this initial stage, the Council of State had no elements to conclude that the increase was disproportionate and dismissed that thesis,” Montaña explained in an interview with El Tiempo. The Council of State’s decision highlights the importance of due process and adherence to legal standards in government actions.

The court will now evaluate whether the new decree adequately addresses the identified shortcomings, particularly regarding the technical justifications for the wage increase. The government’s calculations, outlined on page 16 of the decree, indicate a potential wage increase of 13.6% based on the parameters established in Law 278 of 1996. However, the government argues that adding a 9.4% adjustment to address the “gap between the minimum wage and a living wage” brings the total increase to 23%. This calculation remains a point of contention, with some stakeholders questioning the validity of the “living wage” adjustment.

Business Sector Response and Concerns

Despite initial anxieties, a significant portion of the Colombian business sector, led by the National Association of Industrialists (ANDI), has expressed a preference for maintaining the wage increase to avoid potential economic disruptions. This pragmatic approach reflects a recognition of the potential social and political consequences of reversing the wage hike. However, concerns remain regarding the impact on business competitiveness and profitability, particularly for small and medium-sized enterprises. The ANDI has urged the government to implement measures to mitigate the financial burden on businesses, such as tax incentives and streamlined regulations.

The debate over the minimum wage increase underscores the complex challenges facing the Colombian economy. Balancing the needs of workers, businesses, and the government requires careful consideration of economic indicators, social equity, and political realities. The Council of State’s final decision will have significant implications for the Colombian labor market and the broader economy. The outcome will likely set a precedent for future wage negotiations and government policies related to labor standards.

New Passport Initiative and Data Security Concerns

Alongside the minimum wage announcement, President Petro unveiled the new Colombian passport, fulfilling a campaign promise to overhaul the production process. The new passport will be jointly produced by the Ministry of Foreign Affairs, the National Printing Office, and the government of Portugal, shifting away from the previous sole reliance on private contractor Thomas Greg & Sons. Petro asserted that this change will enhance security and ensure state control over sensitive citizen data. “If a private company has all the database, that’s the first mistake. The database must be in the hands of the State, it cannot be sold, it cannot become a business,” he stated.

The President’s criticism of Thomas Greg & Sons extends to the company’s role in organizing elections, raising concerns about potential vulnerabilities in the electoral process. Petro announced plans to meet with the National Registrar, Hernán Penagos, to discuss these issues and explore ways to strengthen data security and transparency in electoral administration. This move reflects a broader effort by the Petro administration to assert greater state control over critical infrastructure and data management.

The shift in passport production is intended to address long-standing concerns about data privacy and security. The new passport will incorporate advanced security features to prevent counterfeiting and identity theft. The collaboration with the Portuguese government is expected to leverage international expertise and best practices in passport production and security technology. The government aims to ensure that the new passport meets international standards and provides a secure and reliable form of identification for Colombian citizens.

The Council of State’s decision on the minimum wage decree is expected in the coming weeks. President Petro has urged his supporters to continue defending the wage increase, even after he leaves office, signaling the importance he places on this policy initiative. The outcome of this legal battle will undoubtedly shape the future of labor relations and economic policy in Colombia. The government remains committed to addressing economic inequality and improving the living standards of all Colombians, but it must do so within the framework of the law and in consultation with all stakeholders.

The ongoing debate over the minimum wage and data security underscores the complex challenges facing Colombia as it seeks to modernize its economy and strengthen its democratic institutions. The Petro administration’s policies are aimed at addressing these challenges, but they have also sparked controversy and legal challenges. The coming months will be crucial in determining the success of these initiatives and their long-term impact on Colombian society.

Key Takeaways:

• President Petro reaffirmed the 2026 minimum wage at 2 million pesos following a Council of State review.
• The Council of State’s initial suspension focused on procedural flaws in the original decree, not the wage amount itself.
• The business sector largely supports maintaining the wage increase to avoid economic disruption.
• The government is transitioning passport production to a public-private partnership to enhance data security.
• The Council of State’s final decision on the decree is expected in the coming weeks.

As the Council of State deliberates, the future of Colombia’s minimum wage remains uncertain. We will continue to provide updates on this developing story as they become available. Share your thoughts on this important issue in the comments below.