Salary Increase Notification Letter Colombia (Carta de Aumento de Salario)

A Salary Increase Notification Letter Colombia (Carta de Aumento de Salario) is a formal written communication from an employer to a worker advising of an upward adjustment to the worker's monthly remuneration, governed by the salary provisions of the Código Sustantivo del Trabajo (CST) — Decreto Ley 2663 de 1950 — particularly Articles 127 through 147 on wages and Article 141 on salary revisions. Article 141 of the CST establishes that employers and workers may revise salary agreements at any time, and the Corte Constitucional has affirmed through multiple rulings that salary increases — whether voluntary, merit-based, or mandated by annual minimum wage decrees — must be clearly documented to protect both parties' rights.

The constitutional foundation for salary adjustments in Colombia rests in Article 53 of the Constitución Política de 1991, which establishes the principle of a salario mínimo vital y móvil (minimum living and mobile wage) — meaning wages must be adjusted periodically to maintain purchasing power. Article 25 of the Constitution protects work as a fundamental right deserving special State protection, and Article 334 grants the State authority over economic management, including wage policy. The Consejo Nacional de Política Económica y Social (CONPES) and the Comisión Permanente de Concertación de Políticas Salariales y Laborales advise the national government on annual minimum wage adjustments.

The salario mínimo mensual legal vigente (SMLMV) for 2025 is COP$1.423.500, established by Decreto 2292 de 2024, representing a 9.54% increase over the 2024 SMLMV of COP$1.300.000. The auxilio de transporte for workers earning up to two SMLMV is COP$200.000 per month for 2025 per Decreto 2293 de 2024. Every employer must adjust the salary of any worker earning the SMLMV to reflect the new minimum — failure to do so constitutes a violation of CST Article 145 and may result in sanctions from the Ministerio del Trabajo (MinTrabajo) under CST Articles 485 through 487.

Salary increases in Colombia have direct consequences on social security contributions processed through the Planilla Integrada de Liquidación de Aportes (PILA). Under Ley 100 de 1993 and Decreto 1406 de 1999, contributions to the EPS (Entidad Promotora de Salud) at 12.5% of salary (employer 8.5%, worker 4%), AFP or Colpensiones pension at 16% (employer 12%, worker 4%), and ARL (Administradora de Riesgos Laborales) at rates between 0.348% and 8.7% must all be recalculated based on the new salary effective from the increase date. Parafiscal contributions — 4% to Cajas de Compensación Familiar (CCF), 3% to ICBF, and 2% to SENA — are likewise recalculated, subject to the exemption under Ley 1607 de 2012 Article 25 for workers earning less than ten SMLMV.

The salary increase letter also affects the calculation of prestaciones sociales. Cesantías under Ley 50 de 1990 Article 14, intereses sobre cesantías under CST Article 249, prima de servicios under CST Article 306, and vacaciones under CST Article 186 must all be recalculated using the new salary from the effective date. The Fondo de Cesantías will receive the updated contribution amounts based on the higher salary when the employer makes the annual deposit before 14 February of the following year.

Under Ley 1581 de 2012 (Ley de Protección de Datos Personales) and Decreto 1377 de 2013, salary information constitutes sensitive personal data — the notification letter must be delivered directly to the worker and treated as confidential by the employer's human resources department. The Superintendencia de Industria y Comercio (SIC) enforces data protection standards that prohibit employers from disclosing individual salary information to unauthorized third parties.

For workers under a collective bargaining agreement (convención colectiva de trabajo) registered with MinTrabajo under CST Articles 467 through 480, salary increases may be governed by the terms negotiated between the sindicato (labour union) and the employer. Under CST Article 471, collective agreements have a minimum duration of six months and a maximum of two years, and salary adjustment schedules agreed therein are binding on the employer for all workers covered by the convention.

A Salary Increase Notification Letter Colombia is required whenever an employer decides to adjust a worker's monthly remuneration upward, whether mandated by law, agreed through collective bargaining, or granted as a voluntary merit-based or promotional increase. Article 141 of the Código Sustantivo del Trabajo permits salary revisions at any time by mutual agreement, and written documentation of each change is essential for payroll compliance and social security reporting through the PILA system.

The letter is mandatory at the start of each calendar year when the national government issues the annual minimum wage decree. Decreto 2292 de 2024 established the 2025 SMLMV at COP$1.423.500, and every employer must adjust the salary of workers earning the prior year's minimum (COP$1.300.000 for 2024) no later than 1 January 2025. Under CST Article 145, payment below the current SMLMV is prohibited — the Ministerio del Trabajo may impose fines through its territorial inspecciones del trabajo under CST Articles 485 through 487 for non-compliance.

A Carta de Aumento de Salario is needed when an employee receives a promotion or change of position within the organization. Under CST Article 23, the elements of the employment relationship — personal service, subordination, and remuneration — must reflect the actual conditions of work under the principio de primacía de la realidad. When a worker assumes greater responsibilities or moves to a higher-level position, the salary adjustment must be documented to align contractual terms with the real conditions of service.

The document is required when salary increases result from collective bargaining negotiations. Under CST Articles 467 through 480, the convención colectiva de trabajo or the pacto colectivo binds the employer to implement agreed salary adjustments for all covered workers. The Corte Suprema de Justicia, Sala de Casación Laboral, has ruled that failure to implement collectively bargained salary increases constitutes an unfair labour practice subject to sanctions.

The notification is also needed when an employer transitions a worker from salario ordinario to salario integral under CST Article 132 as modified by Ley 50 de 1990 Article 18. The salario integral regime requires a minimum of thirteen SMLMV (COP$18.505.500 for 2025) and must be expressly documented in writing — the salary increase letter serves as the formal record of this transition.

For workers approaching pension eligibility, documented salary increases are critical for the calculation of the ingreso base de liquidación (IBL) used by Colpensiones or private AFPs under Ley 100 de 1993 and Decreto 1833 de 2016. The UGPP (Unidad de Gestión Pensional y Parafiscales) audits salary histories to verify that social security contributions correspond to reported salaries — discrepancies between actual salary and reported amounts may trigger sanctions and retroactive contribution demands.

A valid Salary Increase Notification Letter Colombia must contain specific elements to meet the documentation requirements of the Código Sustantivo del Trabajo and support accurate payroll and social security reporting through the PILA system under Ley 100 de 1993 and Decreto 1072 de 2015.

Employer Identification: The full legal name (razón social) of the employing entity, NIT (Número de Identificación Tributaria) assigned by the DIAN (Dirección de Impuestos y Aduanas Nacionales), and registered address (domicilio principal). Where the employer is a legal entity — a Sociedad por Acciones Simplificada (SAS) under Ley 1258 de 2008, a Sociedad de Responsabilidad Limitada (SRL/Ltda.), or a Sociedad Anónima (SA) — the letter must be signed by the representante legal or an authorized human resources officer whose authority is verifiable through the Certificado de Existencia y Representación Legal issued by the corresponding Cámara de Comercio.

Worker Identification: Full legal name of the worker (nombre completo), identification document type and number — cédula de ciudadanía for Colombian nationals or cédula de extranjería for foreign residents — and current position (cargo actual). The identification must match PILA records to prevent discrepancies in social security reporting audited by the UGPP.

Current Salary: The worker's current monthly salary in Colombian Pesos (COP) before the increase, specifying whether the amount is salario ordinario or salario integral under CST Article 132. Where applicable, the current auxilio de transporte amount should be noted separately, as it is not part of the salary base for social security calculations but is included in the base for cesantías and prima de servicios calculations.

New Salary: The adjusted monthly salary in COP, clearly distinguishing between the base salary and any variable components. Under CST Article 127, salary includes all payments that directly remunerate the worker's service — bonuses, commissions, and payments in kind that constitute regular remuneration form part of the salary base. Under CST Article 128, payments that are not salary (such as occasional bonuses, non-salary benefits agreed under the employer's discretion) must be expressly excluded in writing.

Effective Date: The specific date from which the new salary applies. For annual SMLMV adjustments, the effective date is 1 January per the annual minimum wage decree — Decreto 2292 de 2024 for the 2025 adjustment. For merit-based or promotional increases, the effective date is determined by the employer and must coincide with a payroll period to avoid pro-rata calculation complications.

Reason for Increase: Specification of the basis for the salary adjustment — annual minimum wage compliance (ajuste al SMLMV), merit-based evaluation, promotion to a new position, collective bargaining agreement implementation, or other reason. Under Decreto 1072 de 2015, the employer must maintain records documenting the rationale for salary changes as part of the worker's personnel file (hoja de vida laboral).

Social Security Impact: Acknowledgment that the salary increase will result in adjusted contributions to the EPS, AFP/Colpensiones, ARL, and Caja de Compensación Familiar through the PILA system. The employer should note that the worker's 4% health contribution and 4% pension contribution will be recalculated based on the new salary under Ley 100 de 1993.

Prestaciones Sociales Impact: Statement that all legally mandated benefits — cesantías (one month's salary per year deposited in Fondo de Cesantías by 14 February under Ley 50 de 1990 Article 14), intereses sobre cesantías (12% annual under CST Article 249), prima de servicios (one month's salary per year under CST Article 306), and vacaciones (15 business days under CST Article 186) — will be calculated using the new salary from the effective date.

Worker Acknowledgment: A section for the worker to sign confirming receipt of the notification. While CST Article 141 does not require the worker's acceptance for an increase (as an increase is inherently beneficial), documented receipt protects the employer in future disputes regarding effective dates or amounts.

Forms-legal.com provides this Salary Increase Notification Letter Colombia template as a practical tool for documenting salary adjustments in compliance with the CST and Ley 100 de 1993. Employers should consult with a licensed abogado laboralista or contador público to verify that all payroll and social security adjustments are correctly reflected in PILA filings reviewed by the UGPP and the DIAN.