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Learn about the payroll effects of the increase in the SMLV, as well as the increase in the UVT (Tax Value Unit) in Colombia
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For the year 2022, an increase was determined in the current legal minimum wage (SMLV) in Colombia, as well as in the Tax Value Unit (UVT) by 10.07% and 4.67%, respectively.

Next, we detail the main effects on payroll and limits of deductions in withholding at source as a result of said increases. 

Concept

Year 2021 Col$

Year 2022 Col$
Current Legal Minimum Wage - SMLV (increased by 10.07%) 908,526

1,000,000

Aid (Sub) transportation (increased by 10.07%) 106,454 117,172
Comprehensive Minimum Wage (13 SMLV) 11,810,838 13,000,000
2 SMLV (Applicable for Transport Aux.) 1,817,052 2,000,000
4 SMLV (Applicable for FSP - Social Security) 3,634,104 4,000,000
Maximum Social Security Contribution Limit (25 SMLV) 22,713,150 25,000,000

 

UVT (Tax Value Unit) 36,308

38,004

Dependent Deduction Cap (32 UVT) 1,162,000 1,216,000
Health Deduction Cap (16 UVT) 581,000 608,000
Housing Interest Deduction Cap (100 UVT) 3,631,000 3,800,000
Maximum Exempt Income Limit (art. 204 of the ET - 240 UVT) 8,714,000 9,121,000
Cap to apply deduction for food vouchers (310 UVT) 11,255,000 11,781,000
Maximum deduction cap food vouchers (41 UVT) 1,489,000 1,558,000
ANNUAL Maximum Tiope - AFP or AFC Contributions (3,800 UVT) 137,970,000 144,415,000
Maximum cap exempt income for compensation (204 UVT) 7,407,000 7,753,000

If you have any questions or need advice in this regard, we are at your service to support you.

 

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