Labor reform: changes in salary increases – Sectors – Economy

Labor reform: changes in salary increases – Sectors – Economy

One of the most important discussions in economic matters that takes place every year-end is how much the price will rise. minimum salary. For this 2023, the Government, the businessmen and the labor unions reached an agreement to adjust it by 16 percent up to $1,160,000.

(You can also read: Labor reform: basics of the changes that will affect you directly)

However, it must be taken into account that this adjustment is really only mandatory for the around 3.5 million people who today receive a minimum wage in Colombia. For the rest of the workers there is no legal provision as such that orders an increase; although many companies do.

Juan Pablo López, managing partner of the firm López & Asociados, explains that there are some provisions of the Court that say that the salary must be subject every year to a principle of mobility. However, it indicates that this position has not been forceful.

“In some cases it is said that it must be an absolute increase, in others it is weighted or by mutual agreement between the parties. Also sometimes depending on the situation of the company or the reality of the market. There is no position that is definitive, ”he opined.

This explains why some workers who earn more than one minimum wage have not yet seen an increase in their payrolls or that others have received a partial adjustment.

What would change with the reform?

The draft of the labor reform that was leaked a few days ago and that the Government expects to present on March 16 includes an article that literally establishes that Every worker has the right to have their salary increased by a percentage at least equal to the inflation caused as of December 31.

In other words, if the reform is approved as it is proposed today in that draft, the companies will have to raise the wages of all workers every year, without exception.

In addition to this, the draft also indicates that said increase must be applied retroactively to January 1 of each year.

“The foregoing, without prejudice to individual or collective agreements that establish a higher increase,” says the draft.

Rosmery Quintero, president of the Colombian Association of Micro, Small and Medium Enterprises (Acopi)points out that it is not a good message that it is mandatory since not all companies and sectors always have the same conditions.

“When the minimum is increased, most companies generally raise the salary of the entire payroll; However, it seems to me that it is not a good message to include it as mandatory since there are moments that are difficult for some companies”, he said.

What other changes would the reform bring?

One of the proposals being discussed is that the night shift does not start at 9 pm, but at 6 pm, with which working after that hour would be considered as extra.

In addition, it is sought that the surcharge for working on a Sunday or holiday is not 75 percent but rises to 100 percent.

Likewise, other points are being touched on, such as the contracts for the provision of services are limited and used appropriately, that is, for specific and specialized tasks that are for an established period of time.

Regarding the digital platform workers The draft of the reform says that those who will be self-employed on the contracting platform must verify that they are affiliated with social security, in its health, pension and occupational risk subsystems and comply with their obligations to make contributions.

Otherwise, they must directly assume the payment of 100 percent of the contributions as if they were businessmen, and in the event that a risk protected by social security materializes, they must respond for its consequences in the same terms as the company would. social security entity.

By Mitchell G. Patton

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