Colombia’s 42-Hour Workweek Shapes the 2027 Minimum Wage Debate

Colombia’s 42-hour workweek is influencing the debate over the 2027 minimum wage, as employers and unions consider the financial implications of reduced working hours. Since July 15, the maximum workweek has been 42 hours, down from 48 hours in 2023, as mandated by a 2021 law that requires employers to keep workers’ monthly salaries and benefits.

The shorter workweek increases the cost per hour for employers, even if salaries remain unchanged. For instance, a worker earning the 2026 minimum wage of 1,750,905 pesos (approximately US$554) saw their hourly rate rise from 7,959 pesos to 8,338 pesos (US$2.52 to US$2.64) on July 15, a 4.8% increase without any salary change. Overtime and surcharges are based on this new base rate, so a daytime overtime hour costs about 10,400 pesos.

A further change will increase Sunday and holiday surcharges from 90% to 100% of the ordinary hourly rate, taking effect July 1, 2027. A survey by the human resources association Acrip found that 71% of businesses were already operating 44-hour weeks by July, with some adopting a four-day schedule. Despite this, many companies argue that the rising labor costs necessitate a cautious minimum wage increase as negotiations commence.

On the other hand, labor unions contend that workers have seen a decline in purchasing power over the years and are demanding a significant wage increase. Negotiations are set to begin soon, and the outcome will test how Colombia balances the interests of workers and employers. The shorter workweek adds another layer to the discussion, as businesses weigh its impact on hiring, formal employment, and prices, while unions argue that productivity gains should translate into higher wages for workers.

The December negotiations will determine how the country navigates the trade-offs between reduced working hours, wage demands, and business costs in 2027.