COLOMBIA · ECONOMY
Davivienda, a major Colombian bank, estimates that the country’s monthly minimum wage will rise 8.5% in 2027, to 1,899,732 pesos (about US$576) before the transport allowance. Germán Cristancho, the bank’s director of economic research and financial markets, repeated the forecast on 11 November 2026.
The transport allowance is a fixed monthly payment added to the wage of lower-paid workers. The current minimum is 1,750,905 pesos (about US$531), also before the allowance.
The rise would add about 148,800 pesos (about US$45) a month.
Key Facts
- Estimate Minimum wage up 8.5% to 1,899,732 pesos (about US$576) a month, before the transport allowance.
- Today The current minimum is 1,750,905 pesos (about US$531), also before the allowance.
- Recipe Forecast inflation 6.91%, productivity minus 0.32%, plus 1.91% for what the bank calls a political surprise.
- Inflation Annual inflation was 6.30% in October, and 5.94% for January to October, says statistics agency DANE.
- Unknown The size of the 2027 transport allowance, and the date of the wage talks.
A leading Colombian bank expects the 2027 minimum wage to rise faster than inflation, helped by a political factor it cannot measure.
How Davivienda Builds the Number
The bank adds three pieces: forecast inflation for the end of 2026 of 6.91%, a productivity change of minus 0.32%, and a 1.91% component it calls a “political surprise”. Together they make 8.5%.
Davivienda ties that last piece to decisions taken in earlier years. The 6.91% is a projection, while the 5.94% for January to October is observed inflation.
Why It Matters
The minimum wage is the pay floor for formal workers and a common reference in Colombian pay and benefit rules. Employers watch it closely because a rise above inflation raises their costs.
Inflation is still well above the 3% goal of the central bank, the Banco de la República. Our report on the October factory index covers the other side of the economy.
What to Watch Next
The 2027 figure is set by agreement in a three-party wage commission of employers, unions and the government or, failing that, by government decree. Davivienda’s number is a forecast, not a government proposal.
Watch the date of the first wage talks and the transport allowance, which is added on top for lower-paid workers.
What It Means for You
Foreign companies with staff in Colombia should budget for a rise of about 8% to 9% in the wage floor, while treating the final figure as open. In dollars the minimum would still be about US$576 a month at today’s exchange rate of 3,298 pesos per US$.
What Is Not Known
Davivienda’s article does not give the transport allowance for 2027 or the date talks begin. The final decision rests with the wage commission or the government.
In Plain English
The transport allowance is a fixed monthly payment added to the minimum wage for lower-paid workers. DANE is Colombia’s national statistics agency.
A political surprise component is the bank’s name for a raise above what inflation and productivity alone would explain.
Frequently Asked Questions
How much will Colombia’s minimum wage rise in 2027?
Davivienda estimates 8.5%, to 1,899,732 pesos (about US$576) a month before the transport allowance. This is a bank forecast, not a decision.
What is the minimum wage in Colombia now?
It is 1,750,905 pesos (about US$531) a month before the transport allowance, set by government Decree 1470 of 2025.
Sources: Davivienda estimate by Germán Cristancho, as reported by Portafolio, 11 November 2026; inflation: DANE, 9 November 2026; 2026 minimum wage: Decree 1470 of 29 December 2025. Exchange rate: RT, 3,298 pesos per US$, 11 November 2026.
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