Colombia’s Labor Ministry raised the country’s minimum wage by 12% to $335 (COP1.3 million).
The wage hike affects the monthly income of some 2.5 million workers and is more than three percentage points higher than last year’s estimated inflation rate.
The Labor Ministry decreed the increase after labor unions and employer associations failed to come to an agreement in their annual minimum wage talks.
The raise is a victory for the labor unions that ultimately demanded a 12% wage hike after initially demanding an 18% increase.
The employer associations would not agree to more than 11.5%.
Workers who are employed for a minimum wage will also have the right to a $40 (COP157,472) compensation for transport costs.