Labor Update December 2024

In this opportunity and as an update of relevant aspects in labor matters, we inform you about the progress of the Labor Reform, the choice of the ACCAI, news of the Agreement 10 of 2023 of the SENA and the discussions regarding the minimum wage for the year 2025. We also show you a summary of ALL Academia this 2024.

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Labor Reform

Last October 2024 we reported on the status of the Labor Reform. However, although it was thought that the third debate would take place before the end of the year, it was announced by the Government that the process would continue in 2025.

In fact, it should be noted that two debates are still pending in the Senate of the Republic, which depends on the presentation of the report for the third debate. On December 16, 2024, a positive report was presented by Senators Ferney Silva, Martha Peralta, Wilson Arias and Omar de Jesús Restrepo.

See the document here

What are ACCAIs?

Law 2381 of 2024, by means of which the Pension Reform was implemented on July 16, 2024, created a pension scheme of pillars, including the contributory pillar applicable to dependent workers, independent workers, public servants and people with the capacity to pay to access economic benefits and assistance for old age, disability and survival.

In turn, this contributory pillar is composed of two components:

• Average Premium Component: Administered by Colpensiones, for contributions up to 2.3 minimum monthly salaries in force.
• Individual Savings Component: Those whose income exceeds 2.3 minimum monthly salaries in force must contribute to this Complementary Individual Savings Component, integrated by the ACCAI, on the amount exceeding the aforementioned minimum salaries.

What are the ACCAI? The Administrators of the Complementary Component of Individual Savings (ACCAI) are the entities in charge of managing the money of members of the contributory pillar who exceed 2.3 SMMLV and must contribute on this surplus.

ACCAI will be the name given to the entities that, in the system defined by Law 100 of 1993, corresponded to the former Pension Fund Administrators (AFP).

It is important to note that individuals who do not benefit from the transition regime and are affiliated to Colpensiones, must choose an ACCAI before January 16, 2025. ACCAI before January 16, 2025.Otherwise, they will be randomly assigned to an ACCAI through a system of equitable distribution algorithm, executed by the Pension Management and Parafiscal Contributions Unit of the Social Protection (UGPP), as of March 1, 2025.

Remember our Pension Reform primer here.

Click here to access Decree 1225 of 2024, which regulates aspects of the Pension Reform.

Update on SENA Agreement 10 of 2023

On December 16, SENA announced its intention -still without an official resolution- to leave without effect Agreement 10 of 2023, which updated the list of trades and occupations to determine the apprenticeship quota until a new methodology and a new update is established.

This list is indispensable for setting apprenticeship quotas and will be reissued next year. In the meantime, the apprenticeship contracts and monetization quotas will remain in force without prejudice to their subsequent revision or revalidation.

Discussions on the minimum wage

On the eve of the deadline to define the value of the legal minimum wage for the next annuity -Sunday, December 21, 2024-, to date there are no concrete approaches between the parties involved.

The labor unions propose an increase of at least double digits, exceeding 10%, while the business sector representatives suggest an increase of approximately 5%, considering inflation and the increase in the cost of production.

For its part, the National Government proposes an increase of around 6.2%, a figure closer to the position of the country's capital sector.

Two weeks of debate remain, so if the parties do not reach an agreement, the government will have to define it by decree, recalling what happened for 2024, which increased the minimum wage by 12.07% with respect to the minimum wage of the previous year.

Follow our content schedule in 2025 on ALL Academia

Our training and continuing education program ALL Academia was a great success during the year 2024 in which we had 16 academic and current work events in person and virtual with a total of 2,634 attendees.

In addition, on critical issues such as Labor Reform and Pension Reform, we executed more than 20 face-to-face and virtual conferences with more than 5,000 workers and employees trained, among other topics of interest such as Workplace Harassment, Coexistence Committee, etc.

We invite you to keep up to date with our training and conference schedule and ask for our exclusive content grid!

If you have any further questions or doubts, we invite you to contact us through our usual channels.