Impact of the increase in the Minimum Wage and Transportation Allowance on labor costs
Minimum Wage and Transportation Allowance Increase
For this year 2025, the Minimum Legal Monthly Wage in Force (“SMLMV” for its acronym in Spanish) was set at ONE MILLION FOUR HUNDRED AND TWENTY-THREE THOUSAND FIVE HUNDRED PESOS (COP $1,423,500) and the Transportation Allowance at TWO HUNDRED THOUSAND PESOS (COP $200,000).
It is worth remembering that the Legal Transportation Allowance must only be granted to those workers who earn up to two (2) SMLMV, with some exceptions, such as when the employer provides transportation to and from the worker's home to the workplace, or when the worker lives in the same place where the service is provided, as in the case of internal domestic service workers.
Likewise, for those workers who develop their activities under the modality of work at home and who are granted a transportation allowance, during the time they render their services under the home work modality, this payment shall be recognized as a digital connectivity allowance, and shall have the same salary effects as the transportation allowance.
With this increase, the value of the ordinary working hour was also modified, as well as the respective surcharges.
¿How can we help you?
In Forvis Mazars we have professional experts in the fulfillment of each one of these obligations and we put them at your disposal. In case you require support in the implementation of the or fulfillment of the obligations contained in this newslatter, please contact us at the contact e-mails and we will gladly analyze the best way to support you in your compliance.
