Salario Minimo 2008

wendell13 says on Dec 22, 2007, 07:01:

For 2008 the increase will be 2.3% for federal pensions in the US

The dollar has went down about 10% in 2007 and the inflation rate in Colombia is 5.41% so far this year.. things are getting very pricey here for gringos. The best site for Colombian economic data is the Banco de la Republica site. It lists all kinds of data going back to 1954. Inflation rates, interest rates, growth, etc

www.banrep.gov.co

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Rob77 says on Dec 22, 2007, 07:03:

It's hard to compare minimum wage in Colombia to a US pensioner's COL increase. In the US, the COL is used to help pensioners keep up with inflation. In Colombia, salaries are extremely skewed. Minimum wage is not enough for a decent life in the major cities. They should call the minimum wage the farm wage, because it may be enough to live on out in rural Colombia, but not in cities.

It's not helpful to compare the Colombian minimum wage to US Dollars. What really matters is what you can buy in Colombia with those pesos per month. In Bogotá, the current minimum wage of 433k would get you a room in the north, or an apt far in the south, with little left over.

All the previous minimum wage increases over the years have only helped to partially bring the amount up to a livable standard. It might be more efficient for the Colombian government to regulate the minimum wage based on each state, as costs of living vary by region. This would be similar to the way California props up its minimum wage because the cost of living is higher there.

Note: Despite the minimum wage already being very low for an urban setting, abuse is widespread. While employers may comply with the wage, MANY require workers to surpass the 48 hour weekly max without paying them additional wages. It is customary and few people complain about it, due to high unemployment. A typical example would be a business that gives only 2 days off per month for full time employees. There are also still plenty of small to medium businesses who are not giving their employees the legally required benefits, like health care, etc.

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wendell13 says on Dec 22, 2007, 07:28:

Very true Rob

I have lived in Cali for over 3 years. It simply amazes that people can afford to buy these new apartments that are being built all over the city. I am in line at Carrefour or Exito and the clerk asks the Colombians "how many quotas"? for grocerys. I think this is a big bubble here like the US, especially in real estate

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Rob77 says on Dec 22, 2007, 07:50:

Well, there is a lot of fresh drug money in the lower strata in Valle from tons of raspachinos who get paid far better than salaries for normal jobs in the area. That money trickles down into the legal economy. There is also the aspect of families who abandoned Colombia years ago, sending money home to invest, either to help family or have a comfortable life prepared for them when they return.

BOYCOTT CITGO - CHAVEZ SUCKS!!!

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Atrevido says on Dec 22, 2007, 08:41:

The best salario minimo job in Colombia is that of mayordomo. He gets all the regular benifits, health insurence, workmans comp.,subsidio (when there are children) plus free rent, free electric, free gas, free garbage pickup, free water, a free uniform and boots. And it is customary for the patron to pay a portion of his childrens´school supplies.

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tomtom33 says on Dec 23, 2007, 03:25:

Minimum wage in the US is very different from minimum wage in Colombia. No one can get by very well on mw in the US either. However, very few have to, and generally are not locked in to years at mw.

And yes, any minimum wage is inflationary.

Ideally the minimum wage, if one exists at all, should be pegged to a percentage of the average manufacturing straight-time hourly rate.

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Rob77 says on Dec 24, 2007, 06:05:

GIB, you'll have to show me that part of the south. I have been pretty far south. People who live there told me they were paying 350k to 450k for a large apt. That doesn't include Ciudad Bolivar or Tunjelito.

BOYCOTT CITGO - CHAVEZ SUCKS!!!

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Rob77 says on Dec 24, 2007, 07:45:

That was Soacha. Which is pretty damn South. Went to a birthday party there. Now that I think about it, maybe those places are considered houses. Because, even though they are contiguous, they have 2 floors. I believe they were telling the truth. I don't tolerate people asking me for money. If someone was in serious need of money, I would help them find a job, but that's it.

The gals pushing products in the markets don't make much more than minimum plus benefits.

BOYCOTT CITGO - CHAVEZ SUCKS!!!

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rhydewithdis says on Dec 24, 2007, 09:50:

do most non-managerial folks working in the services industry make around the minimo? Folks such as retail store employees, hotel front desk staff, cooks, bus boys, delivery folks, etc.?

At least here in the US, the minimum wage is one thing - but most stores on the up and up tend to pay a couple of dollars more per month, and then you have other mom and pop shops who pay a little under minimum wage by hiring undocumented workers.

I would think that very few people make under the minimo in Colombia primarily because there isn't a group (like the undocumented workers from Mexico, Ecuador, etc.) to exploit in COL.

They said I couldn't play football I was too small / They say I couldn't play basketball I wasn't tall / They say I couldn't play baseball at all / And now everyday of my life I ball.

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wendell13 says on Dec 26, 2007, 08:40:

If that is the case...who is buying all these new cars in Colombia/

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