How much would it cost a company to hire a worker who earns the minimum in 2025

Before December 30, the salary negotiation table has the task of define the percentage increase of the minimum of Colombian workers by 2025.

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In this space, in which the National Government, representatives of employers and unions participate, not only this remuneration is defined, but also the increase that will be applied to transportation assistance.

Once established, both remunerations must be assumed by employers. However, that It is not the only expense that must be considered in labor matters.

According to the law, in addition to the minimum wage and transportation assistance, the expenses that a company that hires a collaborator must incur include social security contributions and other social benefits.

Although next year’s increase has not yet been defined, for this exercise it will be taken as a reference the inflation data for the month of November (5.20%) and the Total Factor Productivity – TFP (1.73%). With these figures as a basis, the proposals for the increase could be around 6.9%, which translates in real terms to $89,700.

In this sense, The minimum wage would reach $1,389,700taking into account that it is currently at $1,300,000, without transportation assistance.

(Read more: With productivity and inflation data, how much would the minimum rise in 2025)

(Read more: Annual variation of inflation in Colombia was 5.20% in November)

Health and pension

Law 1122 of 2007 establishes the amount that workers must allocate to contribute to the General Social Security System, regardless of whether they receive a minimum or more.

Regarding health, This contribution corresponds to 12.5% ​​of the monthly salary. Of this percentage, 8.5% is paid by the employer and 4% by the employee. Taking as a reference the amount at which the minimum could be located, these payments would be, respectively, $118,124 (employer) and $55,588 (worker).

Turning to the pension, the rule states that the contribution is 16%. Of this percentage, 12% corresponds to the employer and the remaining 4% to the worker. If the aforementioned amount was defined, That quote would be equivalent to $166,764 and $55,588, respectively.

The contracting company is also responsible for affiliating the employer with an Occupational Risk Administrator (ARL). In that sense, the total contribution will be conditional on the level of risk to which the worker is exposed, so the payment can range from 0.522% ($7,250) to 6.960% ($96,723).

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Health

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(See: Minimum wage 2025: did reducing the working day affect high productivity?)

Bonus and severance pay

As part of the social benefits that the employer must pay is the service premium, the payment of which is made in two parts throughout the year.

The first payment of the service premium must be made no later than June 30 and the second before December 20. In both cases, The amount corresponds to 50% of the salary earned plus transportation assistance. Without taking this last information into account, this remuneration would be $694,850.

This list also includes severance pay, which is settled annually, and is equivalent to one minimum wage plus transportation assistance.

Please note that so far the tripartite table has not started to discuss increase proposalsso the values ​​presented could vary.

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