Looking Ahead In 2023 ' Columbia
Published date | 06 February 2023 |
Subject Matter | Employment and HR, Health & Safety, Employee Benefits & Compensation |
Law Firm | L&E Global |
Author | Mr Alejandro M. Castellanos (López & Asociados) |
2023: The Year Ahead For Employers
In 2023, it is important to accentuate that important changes in Labour and employment are expected due to the new government (left wing) bill proposals that will likely be issued in the first semester of 2023.
2023: The Year Ahead for Employers highlights the legislation, litigation, regulation, and trends nationwide that will impact businesses in 2023.
At the start of a new year, private sector employers will face new challenges and will have to comply with various labour-related obligations. Here are the most relevant ones:
- Wage increase: The minimum wage for the year 2023 was set at $1,160,000 (COP) by Decree 2613 of 28 December 2022. This increase must be taken into account for workers who were earning the minimum wage, for those who in 2022 earned a monthly salary between $1,000,000 (COP) and $1,160,000 (COP), and also for workers who earn a full integrated minimum salary, which for 2023 is set at $15,080,000 (COP).
For those workers whose remuneration is not structured on a minimum wage (legal or conventional), and whose increases are not determined by a collective agreement salary adjustment for the year 2023 should be made according to the circumstances of each company, without a mandatory CPI (Consumer Price Index) increase. The key in such cases is to ensure that salary bands do not overlap and to maintain consistency between job responsibilities and corresponding remuneration, in addition to considerations such as market conditions, talent retention, recognition of achievements or results.
- Increase in transport allowance: The transport allowance for this year 2023 is $140,606 COP, as established by Decree 2614 of 28 December This amount must be recognised for workers earning up to 2 times the Minimum Legal Monthly Wage in force,
i.e., whose salary is up to $2,320,000 COP per month.
Thus, the reference values for the year 2023 are as follows:
CONCEPT |
VALUE |
Minimum Legal Monthly Wage in Force (MLMWF) |
$1.160.000 COP |
Legal transport allowance (Transp. Allowance) |
$140.606 COP |
MLMWF + Transp. Allowance |
$1.300.606 COP |
Basic Minimum Hour Value (until July 2023) |
$4.833 COP |
2 MLMWF (Reference for provisioning and Trasnp. Allowance) |
$2.320.000 COP |
13 MLMWF (Minimum Integrated salary) |
$15.080.000 COP |
25 MLMWF (Social Security Cap) |
$29.000.000 COP |
- Apply the tax reform that was sanctioned by Law 2277 of 2022 as of 01 January 2023, making the corresponding payroll
- Prepare and report...
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