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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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

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Recent Regulations Strengthen Corporate Obligations in Health, Communication, and Environmental Matters

Through Circular No. 093 of September 1st, 2025, the Ministry of Labor of Colombia established new guidelines for flexible contributions to the Social Security System

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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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Recent Regulations Strengthen Corporate Obligations in Health, Communication, and Environmental Matters

Through Circular No. 093 of September 1st, 2025, the Ministry of Labor of Colombia established new guidelines for flexible contributions to the Social Security System

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