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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.
Download full Q1 2023 Global Guide Quarterly
New Tax Reform Impacts Employment-Related Taxation
New Legislation Enacted
Authors: Juliana Ramos, Associate, and Juliana Visbal, Associate – Godoy Córdoba | Littler
Colombia adopted a major tax reform in Law 2277 of 2022 (the Law), which aims to strengthen the State's revenues and to reinforce the fight against tax evasion. Among other provisions, the law introduces various important employment-related taxation modifications.
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). (It had been limited to 240 UVT prior to this law.) Further, 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 is extended to income derived from savings for old age and pensions obtained abroad or in multilateral organizations.
New Ministry of Equality and Equity
New Legislation Enacted
Authors: Juliana Visbal, Associate, and Juliana Ramos, Associate – Godoy Córdoba | Littler
Law 2281 of 2023 establishes the Ministry of Equality and Equity in Colombia, whose main objective is to design, lead, implement, and execute the necessary measures to eliminate economic, political, and social inequalities in Colombia.
Increase to the Minimum Wage
New Order or Decree
Authors: Juliana Visbal, Associate, and Juliana Ramos, Associate – Godoy Córdoba | Littler
By order of Decree 2613 of 2022, the Government established that the minimum wage will be COP 1,160,000 (approximately USD 240), effective January 1, 2023. Because the minimum wage was increased by 16%, the integral minimum wage will be COP 15,080,000 (approximately USD 3,114), effective January 1, 2023.
Increase to Transportation Aid
New Order or Decree
Author: Juliana Ramos, Associate – Godoy Córdoba | Littler
By order of Decree 2614 of 2022, the Government established that the transportation aid is COP 140,606 (approximately USD 29), as of January 1, 2023. The transportation aid was increased by 20%.