Colombia: Minimum Wage, Social Security & UVT Changes – 1 January 2025
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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.
- Minimum salary – COP 1,423,500
- Transportation allowance – COP 200,000
- Integral minimum salary – COP 18,505,500
The change in the minimum wage has the following impact on the Social Security Contribution:
| Components | Number of Minimum Wage(s) | Amount (COP) |
|---|---|---|
| Social Security Floor | 1 | 1,423.500 |
| Social Security Ceiling | 25 | 35,587,500 |
| Ceiling of IBC for exemption of Health and parafiscal contributions company contribution | 10 | 14,235,000 |
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
| Components | UVT Equivalent | Amount (COP) |
|---|---|---|
| Maximum deductible value for dependents | 32 | 1,593,568 |
| Maximum deductible value Health | 16 | 796,784 |
| Maximum deductible value of housing interests | 100 | 4,979,900 |
| Monthly 40% deductible ceiling (includes deductible health, housing, dependents, 25% exempt, voluntary contributions, and AFC contributions) | 111.67 | 5,561,054 |
| Cap 40% annual deductible (includes deductibles of health, housing, dependents, 25% exempt, voluntary contributions, and AFC contributions) | 1340 | 66,730,660 |
| Cap 25% monthly exemption | 65.83 | 3,278,268 |
| Cap 25% annual exemption | 790 | 39.341210 |
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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