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Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.
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New Tax Reform in Colombia
New Legislation Enacted
Author: Juliana Ramos, Associate – Godoy Córdoba | Littler
Law 2277 of 2022 adopts a Tax Reform in Colombia, which aims to increase the State’s revenues and reinforce the fight against tax evasion. With regard to employment-related taxation, Article 2 of the Law modifies the exempt employment income. Specifically, the law establishes that 25% of employment payments will be tax-free, limited to 790 UVT (or tax unit value). Prior to Law 2277, the limitation was capped at 240 UVT.
Article 206 of the Tax Statute establishes that disability, old age, survivors’, and occupational risk pensions are taxed only on the portion of the monthly payment that exceeds 1,000 UVT. With Law 2277, this benefit was extended to income derived from savings for old age and pensions obtained abroad or in multilateral organizations.
Modification of the Maximum Contribution Base for the General Social Security System
New Order or Decree
Author: Juliana Visbal, Associate – Godoy Córdoba | Littler
A new decree modifies Article 2.2.3.1.7 of Decree 1833 of 2016 relating to the maximum contribution base for the general social security system. Among other provisions, Decree 2322 of 2022 establishes that the maximum contribution base for the general social security system will be 45 minimum monthly salaries, as long as: i) the real growth of the Colombian economy is greater than 4% during the last three fiscal years, and ii) the fiscal spending on pensions is less than two percentage points of the GDP.
Minimum Wage 2023
New Order or Decree
Author: Juliana Ramos, Associate – Godoy Córdoba | Littler
By order of this decree, the Government established that the minimum wage, as of January 1, 2023, will be COP $1,160,000 (approximately USD $240). The minimum wage was increased by 16%; therefore, as of January 1, 2023, the integral minimum wage will be COP $15,080,000 (approximately USD $3,114).
Transportation Subsidy in Colombia by 2023
New Order or Decree
Author: Juliana Ramos, Associate – Godoy Córdoba | Littler
By order of this decree, the Government established that, effective January 1, 2023, the transportation aid will be COP $140,606 (approximately USD $29). The transportation aid was increased by 20%.