Colombia pension reform sets maximum contribution limit

Colombia's pension reform, enacted through Law 2381 of 2024, has established new rules for how worker contributions are distributed within the system. A key feature of the reform is the maximum limit for the Contribution Base Income (Ingreso Base de Cotización), which is set at 25 minimum legal monthly wages (SMLMV).

Under the new Contributory Pillar, the system is divided into two parts. The first is the Average Premium Component, managed by Colpensiones, which handles contributions for incomes up to 2.3 minimum wages. The second is the Complementary Individual Savings Component, which manages contributions for income exceeding 2.3 minimum wages up to the 25-wage limit.

While the maximum contribution base for 2026 is projected at approximately $43,772,625 pesos based on the minimum wage, this figure represents the ceiling for contributions rather than a guaranteed monthly pension amount. The final pension value will depend on liquidation rules, total weeks contributed, and accumulated resources.