Colombia confirms congressional pay cut and reinstates 23.7% minimum‑wage rise

A decree issued by President Gustavo Petro eliminated the special premium that had added roughly 16‑18 million pesos to the monthly remuneration of Colombian congress members. The change, effective for legislators taking office on 20 July 2026, reduces their gross salary by about 30 percent, from around 55 million pesos to roughly 35 million pesos. The government argues the move will save about 62 trillion pesos a year and promote fiscal austerity.

The Council of State later suspended the decree temporarily, citing legal authority concerns and possible knock‑on effects for other public officials whose salaries are linked to congressional pay. A separate legal challenge revived the decree after a brief suspension.

In a related decision, the Council of State revoked an earlier suspension of the decree that raises Colombia’s minimum wage by 23.7 percent for 2026. The increase sets the monthly minimum wage at approximately 1,750,905 pesos (about 2 million pesos including subsidies), affecting millions of workers and representing one of the largest wage hikes in recent history. Both rulings shape public‑sector compensation and have significant fiscal and social implications for Colombia.