How is the increase in the salary of congressmen calculated?

The government authorized senators and representatives to the Chamber of Commerce an increase of 5.12% and they will receive a monthly payment of $ 34,417,339 from 2021. The increase was $ 1,676,000. How was that figure arrived at?

The controversy and indignation around the increase in the salary of the congressmen, made right in the middle of the Christmas celebration and corresponding to 5.12%, does not stop. That is, an increase of $ 1,676,000, so that parliamentarians will receive, as of 2021, a monthly salary of $ 34,417,339. Although there are already several politicians who have spoken out on the controversy – and even the Government gave its explanation of the situation – around the discussion there is a question that jumps out at us and, although at first it seems simple, it to understand the controversy: how is this increase fixed?

Read also: At the height of Christmas, the congressmen had their salary raised by 5.12%

A first fact to take into account is that what the legislators will earn from next year is equivalent to almost 39 minimum wages this year ($ 877,803). Precisely, to understand the matter, it is necessary to differentiate how the salary of congressmen and public servants is set, and that of the 6.2 million households that have income of a legal minimum salary or less.

In effect, the calculation of the minimum wage in the country – a discussion that is traditionally held at the end of each year – is set, by law, the Permanent Commission for the Agreement on Wage and Labor Policies, a body created by the Constitution to promote good relations between workers and employers. The National Government, the employees and the workers have a seat there.

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Both employees and workers arrive at this scenario with an increase proposal, which depends, among others, on inflation and the goal set by the Banco de la República for the following year; the growth of the economy for the year and what is projected for the next, and productivity to the growth of the economy. Both must reach an agreement before December 15 and, if not, the government intervenes, which has until December 30 to set the increase based on the aforementioned parameters.

This is precisely what happened this year and the Executive will be called upon to define the increase, because while the employers proposed an increase of just 2.7%, the trade union centrals wanted the minimum monthly salary to remain at $ 1 million (an increase of almost 14%). So, why was the increase in congressmen of 5.12%?

In context: There was no agreement: the Government would define the minimum wage for 2021

According to the Constitution itself, in the case of legislators, the salary allocation is calculated annually by making an average of the changes in the last year that the remuneration of public employees has had. To do this, we must take into account Law 4 of 1992, which is the one with which the Government sets the salary regime of said public servants, as well as members of Congress and members of the Public Force.

Unlike the negotiation of the minimum wage, for setting the salary of public employees the National Government takes into account, among others, the acquired rights of workers, their administrative career, the modernization of public administration, competitiveness, macroeconomic and fiscal policy, the level of positions, and the rationalization of public resources and their availability.

Along these lines, in 2019 the representatives of the union centrals and federations of public employees advanced a negotiation with the Executive to set the salary increase. It was agreed that the increase would be made based on the inflation of 2019, which was located at 3.80%, plus 1.32% (percentage that was calculated based on the aforementioned parameters), which yielded 5.12 %.

In this way and as established by law, the Executive modified the employee salary system. The regulation indicates that it has a deadline to establish said readjustment within the first 10 days of January of each year, without this implying a reduction in their salaries and social benefits. The law also establishes that, once this process has been completed, in the middle of the year and making an average of that remuneration, the Government sets the readjustment in the salary of the congressmen.

This readjustment was postponed this year because of the pandemic and until December 24, President Iván Duque made the modification, which raised a blister in a portion of public opinion.

Faced with the controversy, the Ministry of Finance defended that the increase in the minimum wage for 2020 was 6%, while that of parliamentarians and public officials was 5.1%. “This increase had to be done before the year ended, complying with the provisions of the Law and the Political Constitution,” explained the entity.

Read also: President Duque adjusts salaries of administrative officials of Congress.

In turn, the director of the Administrative Department of the Presidency (DAPRE), Diego Molano, insisted that the Government increased the minimum wage 6%, while public servants were increased 5.12% in April. “Congressmen had not increased. In compliance with the law, an increase of 5.12% was applied for 2020 ”.

Faced with the negotiations to establish the minimum wage for 2021, the official pointed out that “the definition of the increase for 2021 has not yet been given and will seek to maintain the healthy balance between purchasing power of workers and job creation for reactivation.”

Additionally, Víctor Muñoz, Economic and Digital Transformation Counselor, recalled that the increase in the salary of congressmen has been less than the increase in the minimum wage: “In the previous Government they increased congressmen above the minimum wage,” he claimed.

The congressmen themselves also expressed their opinion on its increase. The former president and former senator Álvaro Uribe Vélez, natural head of the Democratic Center, affirmed that the 51 parliamentarians that his community has are studying whether to reject the increase or donate it.

“Together they will make the decision to reject him or to assign him to a social task. The party will insist on reducing the number of congressmen and on the minimum wage proposal ”, he assured.

In turn, from the opposition, Senator Angélica Lozano (Alianza Verde), argued that the increase of 2.5% to the minimum wage that is proposed for 2021 is unfair, compared to the increase of almost 6% for the salary of the congressmen. “We have a duty to lower the salary of congressmen. The disproportionate and unreal gap with the ordinary Colombian, who works hard, cannot be maintained ”.

Even Humberto de la Calle, former presidential candidate and former chief negotiator in the talks of the Havana Peace Agreement, said that this decision should be reversed. “They can resort to all kinds of technicalities, but it is unacceptable to readjust 5% the income of congressmen and only 2% the minimum wage. Congress must give up the readjustment, “he wrote on his official Twitter account.

You may also be interested in: “Congress must renounce the readjustment of his salary”: Humberto de la Calle

The liberal politician called on Colombians to carry out a popular action on the internet to generate pressure on parliamentarians so that they refuse to receive the salary increase. “Let’s make a great virtual mobilization for Congress to renounce the readjustment. And that our jurists initiate a process of refunding the expenses of representation due to absence of cause ”, was the invitation that he made to his followers on the social network.