Paraguay and Colombia grapple with minimum‑wage hikes and labour‑market impacts

In Paraguay, the National Council of Minimum Wage (CONASAM) met and approved a modest 3 % increase – 87,000 guaraníes – far below the 22.3 % demanded by unions. Union leader Oscar Herreros Usher described the result as a “farce,” noting that the labor representative walked out and called for broader worker mobilisation rather than further negotiations with employers and the government.

In Colombia, the 2026 minimum‑wage raise has spurred debate. Workers welcome higher pay as a way to restore purchasing power, while business groups and SME representatives warn that the added labour cost could slow formal job creation and force firms to rethink hiring plans. Economists say the challenge will be balancing income protection for employees with the ability of companies to sustain employment growth.