Colombia’s decision to increase its minimum wage by 12% in 2024 is a big economic move, especially considering the country’s ongoing problems with high inflation and a somewhat still economy. This increase, which will raise the minimum wage to 1.3 million pesos (approx US$340) per month, follows a 16% increase in 2023 and occurs amidst a challenging financial landscape marked by a 10.15% inflation rate. (https://www.reuters.com/world/americas/colombia-hike-minimum-wage-by-12-2024-2023-12-30/)
In the context of higher-paid, more qualified roles, this wage increase will probably create a ripple effect. Generally, when minimum wages rise, there is a domino effect on wages across the board. In industries that compete globally for talent, there might be a need to offer more competitive salaries to retain top-tier people.
Furthermore, the rising cost of living, driven by inflation, could necessitate higher salaries even for more qualified roles, as employees seek salaries that keeps pace with their expenses. Companies might find themselves negotiating higher wages to prevent talent turnover or to attract skilled workers from other regions or industries.
That all being said, there are still significant commercial advantages to hiring remote staff in countries like Colombia. Just be mindful that economies like these can have a fluid effect on salaries, and its important to have current information before making wage decisions.
efrenchaux.com 
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