Regarding transport aid, the President of the Republic, Iván Duque, indicated via his Twitter account that it increases by $ 3,600, from $ 102,854 to $ 106,454, also an increase of 3.5%. The allowance increased by 10.07%, the same percentage of the minimum wage. We recommend: Diligo, the transport and mobility exchange you need to know. For its part, the Labour Chamber of the Supreme Court, in judgments such as SL 12213 of 1999 and SL 11681 of 2015, has developed an opposite thesis, according to which, apart from the minimum wage, there is no legal basis for the employer to unilaterally make an annual adjustment for employees earning higher wages. In fact, this position has been adopted by the Ministry of Labour through concept No. 359772 of 2008, if the company considered that the increase in these salaries could be presented by mutual agreement between the parties to the employment contract, but not on the basis of a legal provision. REFERENCE VALUES LEGAL MINIMUM WAGE AND TRANSPORT SUBSIDIES YEAR 2021. Among the various expenses and labour costs surrounding an employee`s participation in a business is the transportation subsidy or subsidy. Thus, on December 29, 2020, the national government, in the exercise of its legal powers and in the absence of consultation, issued Decree 1785 of 2020, which, as of January 1, 2021, established the applicable monthly minimum wage of NINE HUNDRED EIGHT THOUSAND FIVE HUNDRED AND TWENTY-SIX THOUSAND PESOS (COP $ 908,526). Therefore, the minimum wage increase was equal to the 3.5% set for 2020, or the sum of THIRTY THOUSAND SEVEN HUNDRED AND TWENTY-THREE PESOS (COP $ 30,723). This represents a 3.5% increase in the minimum wage and transportation subsidies compared to 2020.
For example, the minimum wage was increased by $30,723 and transportation assistance by the Conference of the Parties by $3,600. Don`t just consider this benefit as a legal obligation. By delivering things right, you show your employees that their quality of life, integrity and comfort are a priority for your business. If you add the actual minimum wage increases during President Duque`s term (i.e. 2.82% of the real increase in 2019, 2.2% in 2020 and now that 2% in 2021), the actual increase during his term amounts to 7%. (see graph) (2022 minimum wage: one million plus $117,172 transportation subsidy.) In this regard, it should be recalled that Decree No. 771 of 3. June 2020 stipulated that during the validity of the health emergency declared by the Ministry of Health and Social Protection in response to the COVID-19 pandemic, employers had to recognise the value of transport legal assistance as a connectivity aid. This clarified that it also applies to workers who earn up to two (2) legal minimum wages and develop their functions in the modality of working from home and not in teleworking under the conditions and in accordance with the requirements of Law 1221 of 2008. A worker can receive both aids, depending on his own conditions: for 2022, the national government has set the value of the transportation subsidy at $117,172; This is an increase of 10.07% over the previous year. In the case of employees who have variable salaries for commissions or performance bonuses, it must be determined on a monthly basis whether they are entitled to the transportation service or not.
In accordance with Article 7 of Law No. 1 of 1963, the flat-rate travel allowance must be included in the basis of assessment for the calculation of the service allowance and redundancy payments. I want to know if night or overtime bonuses will be added to Basic to remove an employee`s transportation assistance Given the economic and health crisis triggered by the global COVID-19 pandemic, 2021 is perhaps one of the years where there has been more speculation in Colombia about increasing the legal minimum wage and transportation assistance. In accordance with article 56 of the Constitution and Act No. 278 of 1996, the Standing Consultation Committee on Wage and Labour Policy, composed of representatives of employers, workers and the national government, should try to determine these amounts, which are the cornerstone of the country`s economic functioning, by consensus. Duque also pointed out that “for the first time in Colombia`s history and in fulfillment of an electoral promise, one million pesos will exceed, including the transport subsidy.” DECREE 1785 OF 2020: LEGAL MINIMUM MONTHLY WAGE IN FORCE YEAR 2021. that the state of health emergency has been declared by Resolution 2230 of the Ministry of Health and Social Protection until at least 28 December 2020. February 2021 and that the judgment C-311 of 2020 of the Constitutional Court stated that the application of the connection allowance can be extended beyond the end of the said emergency, If it is necessary to ensure the continuity of working from home to avoid the spread of COVID-19, it is clear that the legal sum will be paid by employers in accordance with their obligations towards one or the other duty title. The provision of this assistance is a legal obligation regulated by the following laws of the country: The national government has announced that the minimum wage in Colombia will increase by 3.5% by 2021. This equates to $30,723, which would increase the current monthly minimum wage from $877,803 to $908,526. On December 29, 2020, the national government issued Decree 1786 of 2020, by which, effective December 1, 2020 In January 2021, legal transportation assistance of one hundred and six thousand four hundred and fifty-four pesos (COP $ 106,454) per month was established for workers earning up to two (2) legal monthly minimum wages. First, the Constitutional Court stated, inter alia, in judgments SU-400 of 1997, C-1433 of 2000 and C-1064 of 2001, that wages above the legal minimum must be indexed at least to the consumer price index (CPI), failing which the wage would lose purchasing power, which would constitute a deterioration in the working conditions of workers.
Some companies may make the mistake of viewing transport aid and aid as mutually exclusive. That`s not true. On December 29, 2020, the national government issued Decree 1785 of 2020, which will apply from December 1, 2020. January 2021 sets the legal monthly minimum wage at COP$908,526. We share the Ministry of Labor`s Decree 1785 of 2020, which states that the new legal minimum wage for ±2021 will be $908,526; Similarly, Decree 1786 of 2020 stipulates that transportation assistance will be $106,454. In this case, the employee must benefit from the two aids mentioned. Transport subsidies are only mandatory for certain workers, not everyone is entitled to this subsidy. These are the conditions, according to the law: if the employee`s salary exceeds the two applicable legal minimum wages, he is still entitled to his transport allowance through the payment of overtime, night bonuses, holidays or similar figures. Travel allowance is mandatory only for employees earning two months` minimum wage or less; That is, up to $2,000,000 by 2022. However, with regard to the adjustment of the minimum wage, concerns are expressed every year about the legal obligation to apply the corresponding increase and which workers should be covered by the measure.
This assistance is increased each year, in parallel with the legal minimum wage in force in Colombia, to percentages equal to and in proportion to the increase in the prices of the family basket. The analyst added that this increase is one of the largest in real terms in the last decade. However, Jaramillo said that, given the situation, setting the salary for 2021 is not the most prudent way. In view of these different positions, we believe that, although there is no rule imposing the obligation of an annual adjustment of wages above the legal minimum, economic phenomena such as inflation are not unrelated to the exercise of the right to work and the labour market. So if you want to guarantee workers` rights and provide for employers` claims, we suggest increasing these wages at least according to the percentage of the CPI. However, with regard to workers earning a wage above the legal minimum, labour law does not clearly define the mandatory nature of the annual increase, which is why the High Courts have taken different positions. Taking into account the increase in the current legal monthly minimum wage and legal transport assistance for the year 2021, we present below the reference values of the updated work concepts: Transportation assistance is a service that, according to the law, must be provided to employees who earn wages below two applicable legal minimum wages. Avoid legal trouble! Download our free e-book “10 Keys to Understanding Work Premiums under the Material Labour Code” here. The transport allowance is not included for the calculation of leave or for the payment of parafiscal or social security.