Colombia Minimum Wage and UVT | 2025 Updates
The Colombian government has implemented crucial updates to the minimum wage and UVT (Tax Value Unit), effective January 1, 2025. These changes impact salaries, social security contributions, and tax deductions for employees and employers.
✔️ Minimum Wage: Increased by 9.54% to COP 1,423,500.
✔️Social Security Adjustments: Revised contribution limits based on the updated wage.
✔️ UVT Changes: Tax value unit set at COP 49,799, affecting deduction caps.
Updated Minimum Wage
On December 26, 2024, Colombia announced a 9.54% increase in the minimum wage. The revised wage details include:
- Minimum Salary: COP 1,423,500
- Transportation Allowance: COP 200,000
- Integral Minimum Salary: COP 18,505,500
Employers must adjust payrolls to reflect these changes and maintain compliance.
Social Security Contribution Updates
The new minimum wage affects the social security floor and ceiling for contributions:
| Component | Minimum Wages | Amount (COP) |
|---|---|---|
| Social Security Floor | 1 | 1,423,500 |
| Social Security Ceiling | 25 | 35,587,500 |
| Ceiling for health and parafiscal exemptions | 10 | 14,235,000 |
Employers should review these updates to ensure accurate contributions.
UVT (Tax Value Unit) Updates
DIAN has set the UVT for 2025 at COP 49,799, impacting tax deduction limits:
| Deduction Component | UVT | Amount (COP) |
|---|---|---|
| Dependents (maximum deductible) | 32 | 1,593,568 |
| Health (maximum deductible) | 16 | 796,784 |
| Housing Interests (maximum deductible) | 100 | 4,979,900 |
| 40% Monthly Deduction Cap | 111.67 | 5,561,054 |
| 40% Annual Deduction Cap | 1,340 | 66,730,660 |
| 25% Monthly Exemption Cap | 65.83 | 3,278,268 |
| 25% Annual Exemption Cap | 790 | 39,341,210 |
These updates reflect inflation adjustments and fiscal policy changes.
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Need Support?
For detailed guidance on implementing these updates, feel free to contact our experts or visit our Colombia Guide.
By staying informed about Colombia’s income tax updates for 2025, you can ensure compliance and optimize tax planning effectively.
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