Jan 8, 2025 1 min read

Colombia: Minimum Wage, Social Security & UVT Changes – 1 January 2025

On December 26, 2024, the president of Colombia decreed an increase of 9.54% in the minimum wage. As such, the following minimum wages will be applicable, effective January 1, 2025.

The change in the minimum wage has the following impact on the Social Security Contribution:

ComponentsNumber of Minimum Wage(s)Amount (COP)
Social Security Floor11,423.500
Social Security Ceiling2535,587,500
Ceiling of IBC for exemption of Health and parafiscal contributions company contribution1014,235,000

In addition, the National Directorate of Taxes and Customs (DIAN) has issued Decree No.  Resolution No. 000193 on December 4, 2024, setting the tax value unit (UVT) at COP 49,799, effective January 1, 2025.

Consequently, the following has increased

ComponentsUVT EquivalentAmount (COP)
Maximum deductible value for dependents321,593,568
Maximum deductible value Health16796,784
Maximum deductible value of housing interests1004,979,900
Monthly 40% deductible ceiling (includes deductible health, housing, dependents, 25% exempt, voluntary contributions, and AFC contributions)111.675,561,054
Cap 40% annual deductible (includes deductibles of health, housing, dependents, 25% exempt, voluntary contributions, and AFC contributions)134066,730,660
Cap 25% monthly exemption65.833,278,268
Cap 25% annual exemption79039.341210

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.

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Colombia – Changes Minimum Wage, Social Security And UVT value – 1 January 2025
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