Colombia’s minimum wage will rise by 16% in 2023, Colombian President Gustavo Petro said Dec. 15, according to Investing.
The minimum wage in Colombia will rise to 1.16 million pesos ($242.70) per month, an increase of 160,000 pesos ($33.40).
Wage hikes come amid inflation in Latin America’s fourth-largest economy. For 12 months, inflation amounted to 12.53%.
The increase follows agreements between business associations and unions and will benefit an estimated 3.4 million minimum wage earners, the Colombian president said.
“My hope is that this increase in the minimum wage will restore the purchasing power lost in recent months due to inflation, restore growth in the average productivity of the economy, and also allow us to boost domestic demand in Colombia,” Petro said.
Growth in domestic demand in Colombia could boost economic growth, exceeding current forecasts, which are not too optimistic, Petro said.