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The 3.5 percent increase in the minimum wage for 2021, set by the Government, with which the monthly allowance will remain at 1,014,980 pesos (908,526 pesos plus transportation assistance of $ 106,454), was above the maximum offer of the employers of 2.7 percent, but far from the initial request of the unions, which was 13.9 percent.
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With an environment of low inflation, given that the cost of living would be rising by 1.9 percent this year, the minimum wage in Colombia is located, pending the readjustments defined in the other countries, in the middle among 20 nations from Latin America.
Among 20 Latin American countries for which there is data, the minimum wage in Colombia is in position number 7.
The range of purchasing power of wages in Latin America is very varied since the highest value – that of Costa Rica – is equivalent to a purchasing power in Colombia of 1,160,000 pesos. Meanwhile, the lowest is equivalent to 1 dollar, in Venezuela.
As each country has different prices, in its own currency, The way to compare the purchasing power of salaries is by calculating what volume of goods can be paid with the salary in each country, and expressing that basket in an equivalent system known as Purchasing Power Parities (PPP).
Comparing with PPA, and bringing the values to pesos, in second place is Ecuador with the equivalent of 1,068,000 pesos, while Paraguay, with 1,062,000 pesos, and Chile (1,041,000 pesos), are located in third and fourth place respectively.
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And 7,000 pesos below Chile, and ranking fifth, is Bolivia (1,033,000 pesos). It is followed by Guatemala, with 1’001,000 pesos, then Colombia with 908,526 pesos and Honduras appears in eighth place with 852,000 pesos.
The ninth place is occupied by Panama with 763,000 pesos, and in the tenth position is Argentina, with 759,000 pesos.
Uruguay’s current minimum wage has a purchasing power equivalent to 711,000 Colombian pesos, which is why it is ranked 11th, above Peru, which has a minimum wage equivalent to 681,000 pesos, and the Dominican Republic, with 620,000 pesos .
El Salvador and Brazil are in positions 14 and 15. The first with a purchasing power equivalent to 596,000 pesos and the second with 585,000 pesos.
With six thousand pesos less is Mexico (579,000 pesos), followed by Nicaragua with 488,000 pesos and Haiti with 322,000 pesos
Finally, Cuba appears with 15 dollars and Venezuela with 1 dollar. However, in these two countries, the statistics prevent having a reliable equivalence of purchasing power.
ECONOMY AND BUSINESS – WEATHER
