Colombia’s Council of State has lifted the provisional suspension of the decree that raised the national minimum wage by 23.7% for 2026, restoring the increase for millions of workers while the underlying legal challenge proceeds. The ruling, issued by the court’s Second Section, found that the February suspension order had failed to identify a concrete harmful effect from the wage hike and that the government’s subsequent decree, which maintained the same percentage, rendered the precautionary measure purposeless. The decision means the minimum wage remains at 1,750,905 pesos per month, a level the administration of President Gustavo Petro defends as essential to protect purchasing power after inflation peaked above 5%.

In a parallel case, a substitute judge (conjuez) of the same court suspended a separate decree that eliminated a special service bonus worth 18 million pesos for incoming members of Congress. The conjuez, Héctor Santaella Quintero, argued the measure lacked legal support and would also affect magistrates’ own remuneration. President Petro immediately denounced the ruling, claiming the judge was ruling on his own interests because the bonus applies to high-court members. Colombian legal observers note that all six regular magistrates of the Second Section had recused themselves from the bonus case, citing a direct financial stake, and that Santaella was appointed through a process that has drawn scrutiny over his prior professional ties to a sitting magistrate.

Viewed from Buenos Aires, the Colombian disputes echo a broader regional recalibration of wage-setting mechanisms. Argentine companies, according to a PwC survey, are shifting towards less frequent salary adjustments—60% now use quarterly or four-monthly cycles—as inflation expectations stabilise around 28% for the year. Unions such as the railway workers’ federation have secured phased increases of 8.03% and 1.9% for mid-2026, along with one-off non-remunerative payments, without resorting to strikes. Analysts in Argentina say the greater predictability is allowing firms to redesign compensation packages, though only a minority have adopted new labour-reform tools like dynamic salaries or hour banks.

The Colombian court’s decision on the minimum wage does not end the legal uncertainty. The substantive hearing on the decree’s legality will now proceed, with the court set to examine whether the government adequately justified the increase using economic variables such as inflation, GDP growth and productivity. In the bonus case, the suspension remains in force pending a final ruling, and the conjuez’s role is likely to face further political challenge. The next procedural step in both dossiers is the collection of evidence and contradictory hearings, with no date yet set for a definitive judgment.