I try really hard to keep politics out of The Passport.

Not because politics don’t matter—because most of the time, the arguments are louder than the reality on the ground. And what I care about (and what you care about) is the ground: jobs, costs, stability, visas, and whether Colombia stays the kind of country you can build a life in.

But every once in a while, something crosses the line from “political debate” into pure math. And Colombia’s 2026 minimum wage move is one of those moments.

Here’s the headline: Colombia raised the minimum wage by 23% for 2026, setting the monthly minimum salary at 1,750,905 COP.
On top of that, the transport allowance (“auxilio de transporte”) was set at 204,000 COP for eligible workers.

Now, before anyone cheers or boos, let me say it clearly:

This isn’t left vs. right.
This isn’t “workers vs. business owners.”
This is cause and effect—and the effects rarely show up in the same week as the announcement.

Because when you raise wages faster than productivity, you don’t just “raise wages.” You raise the cost of hiring a human being. And that cost doesn’t land evenly.

So let’s break down what changed, why it’s basically not reversible in practice, who absorbs the cost first, and why this matters even if you don’t earn Colombian pesos.

Colombia sets the minimum wage each year. That’s normal. What’s unusual is the size and speed of the increases recently—especially with 2026 coming in at a 23% hike and a monthly minimum salary of 1,750,905 COP.

Most people hear “minimum wage” and think that’s the employer’s cost.

It’s not.

In Colombia, the employer’s true cost includes more than the salary:

So a large minimum wage jump doesn’t just raise paychecks—it raises the total cost of formal employment.

That’s the key phrase: formal employment.

Because Colombia already has a massive informal economy. When formality gets more expensive, informality starts looking like survival.

This is the part where rumors always start.

People ask: Can Congress reverse it? Can the courts reverse it? Can the next president undo it?

Here’s the reality: once the minimum wage becomes the legal floor, it becomes the new normal. The system isn’t built to lower it after the fact.

Even if a future government wanted to, lowering the minimum wage would be politically radioactive and legally messy. Minimum wages, in most countries, move in one direction: up.

So the more useful question isn’t “Can it be reversed?”

The useful question is:

Because someone always does.

When wages jump sharply, the impact isn’t shared equally.

Big companies can absorb higher labor costs:

Small businesses don’t.

Think:

For many of them, payroll is the largest expense. When that expense jumps hard, here’s what happens in real life:

This is the uncomfortable truth.

If you already have a job, you may benefit immediately.

But if you’re:

…employers become pickier. They hire fewer people, and expect more from each one.

If a business can’t afford formal payroll, the workaround isn’t always “close the business.”

It’s:

And on paper, that looks like “employment.”

In reality, it’s survival mode.

Businesses don’t eat higher costs forever. The cost leaks into daily life:

And the irony is brutal: the people the policy is meant to help often feel the price increases the hardest.

Because minimum wage in Colombia isn’t just a paycheck number.

It’s a baseline metric that influences other systems—especially residency requirements and cost structures around services.

Many income requirements in Colombia are expressed as multiples of minimum wage (for different visa categories and renewals). When the minimum wage jumps, those thresholds can jump too.

So if you’re a:

…you may find the goalposts moved.

Even if your rent doesn’t spike overnight, labor costs show up in:

This is how “it doesn’t seem expensive” slowly turns into “why is everything creeping up?”

Not because Colombia became Paris.

Because labor became more expensive—fast.

If you’re reading this from the U.S., Canada, the UK, or Western Europe, it’s important to keep perspective:

Colombia is not suddenly expensive.

Healthcare is still one of the best value systems around.
Food is still affordable—especially if you live like a local.
Domestic travel is still accessible compared to many countries.
And Colombia still offers the lifestyle advantages that made people pay attention in the first place.

What changed is not the destination.

What changed is the direction:

And friction is what breaks momentum.

Colombia had been improving steadily—more stability, more investment, more infrastructure—and policies like this create headwinds that didn’t need to exist.

Headwinds don’t crash a plane instantly.

They just make everything harder.

If you live in Colombia—or you’re planning a move—here’s the smart way to respond:

Minimum wage hikes feel good in headlines.

But economics doesn’t care about headlines.

Economics cares about:

And the hard truth is: the damage from policies like this often shows up later—through fewer jobs, less formal employment, and higher everyday costs.

Colombia didn’t become “unlivable.”

But Colombia did take on unnecessary friction.

And friction is exactly what people moving abroad are trying to escape.

If you’re already here, you’ll adapt.

If you’re considering a move, don’t panic—just update your math.

Because the best relocations aren’t emotional decisions.

They’re sustainable ones.