Minimum Wage for 2026: 23% Increase Unbalanced the Cash Flow of Companies to Start the Year

Labor and Employment attorney Camilo Cuervo was mentioned in Portafolio for his analysis of Colombia's unexpected 23 percent minimum wage increase for 2026 and the pressure it is placing on employers' cash flow. Mr. Cuervo warned that many companies budgeted for increases of roughly 10 percent to 15 percent and are renegotiating contracts, reassessing costs and securing emergency financing to cover January payroll, particularly in labor-intensive sectors where wages make up the bulk of operating expenses. He pointed to industries such as private security, cleaning and transportation, where regulated rates limit quick price adjustments, and cautioned that the sudden increase can erase thin margins and force difficult choices between raising prices or reducing headcount.

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