The salary increase for 2023 was defined at 16% after an agreement between the unions and unions.
The foregoing means that it remained at $1,160,000 pesos. If we add the transport subsidy, which increased by 20%, in total, the minimum wage in Colombia corresponds to $1,300,606.
However, the prices of some products and services also increase. One of the reasons is the variation in the consumer price index (CPI) with which it closed 2022: 13.12%, the highest figure in 23 years.
So what will Colombian household spending be like by 2023?
Although it is official that They deindexed 85 products, rates and economic activities from the minimum wage, so that they would not rise in price in 2023 There are other items that do break and Colombians put it out in their pockets.
Those rates that will register an increase will be set according to the increase in inflation, which, as already used, was 13.12%.
Mobility
According to BBVA Research with data from Dane for 2018, transportation represented 12.7% of the spending groups, only surpassed by food (15.1%) and housing (33.2%).
By 2023, in this area, the price of gasoline increased by 400 pesos for each gallon of regular fuel and at 65 pesos a gallon of ACPM.
Other rates that will rise are those of tolls, whose new price will be known in the coming days and will begin to be applied from next January 16.
It is added that the mass public transport service will also rise. What Asocapitales recommended was an adjustment of 12.53% in fares, taking inflation into account.
In the case of Bogotá, for example, the rise in prices will begin to be felt from next January 10: TransMilenio will be at 2,950 pesos and the zonal service (SITP) will be at 2,750 pesos.
If you take public transportation, the transportation subsidy will cover 47 TransMilenio tickets per month.
In the case of the Zonal service (Sitp) in Bogotá, the 140,606 transportation assistance will be enough for 51 tickets, taking into account that it rises to $2,750 each way.
Read here: (Colombia would go from growing 8% in 2022 to 1.3% in 2023: World Bank)
living place
According to DANE’s National Household Budget Survey, 28% goes to accommodation, public services and other fuels, which in money would be equivalent to $324,800* of the $1,160,000.
Rentals, for their part, have an increase in relation to inflation as of December 2022, which was 13.12%.
Different authorities and entities have called for the lessor and lessee to reach agreements that do not impact the economy.
Of course, it is worth clarifying that this increase is established in Law 820 of 2003: «Every 12 months of execution of the contract at the same price, the lessor may increase the fee up to a proportion that is not greater than 100% of the increase in the Consumer Price Index (CPI)».
Also, you need to know that the increase It will only be done when the contract year is overthat is, if you set up your lease on June 1, 2022, until that date in 2023 the price adjustment can be made.
*Classification of individual consumption by purpose.
feeding
Laura Peña, BBVA Research economist for Colombia, assured Portafolio that in December the surprise came mainly from food, an item that achieved a annual variation of 27.8%.
“We foresee that the high levels of inflation continue to be transmitted, especially during the first half of 2023, followed by a moderation of the data that can close the year at close to 8%,” he said.
In this same area, the consumption tax will return.
This means that businesses that are exclusively dedicated to spending food and beverages must charge their consumers the impoconsumo and have the Single Tax Registry (RUT) updated with responsibility 33, which can impact buyers’ pockets.
Also: (CDT: what is it and why is it a good option to save right now?)
At a press conference, the Minister of Labor, Gloria Inés Ramírez, announced that the products that make up the basic basket will have an impact, but the de-indexation of some of the minimum wage is one of the strategies to minimize it.
That would apply for 204 minimum wage rates in order to protect the purchasing power of Colombian households.
In that arrangement deindexing will be fulfilled charges, fees, fines, sanctions, taxes and stamps, among others. From now on, these elements would be tied only to the growth of inflation.
However, there are still 119 rates to be deindexed in accordance with the Government’s goal. This will be done progressively. That is to say, they will be advertised for the products and services that seek to get rid of the minimum.
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