What Is the Average Income in Colombia?

Understanding income levels within a country requires examining various economic indicators that paint a comprehensive picture of financial well-being, revealing what individuals earn and how those earnings translate into daily life. Analyzing these figures helps to contextualize the economic realities faced by residents, moving beyond simple averages to explore the complexities of a nation’s financial structure.

Key Income Measures in Colombia

Several standard metrics gauge income levels, each offering a distinct perspective on economic activity and individual earnings. Gross Domestic Product (GDP) per capita represents a country’s total economic output divided by its population. This figure provides an overview of average economic productivity per person and is used for international comparisons, though it does not reflect individual income distribution.

The average monthly or annual wage reflects the typical earnings of employed individuals. This metric directly represents what workers take home from their jobs. Calculating a precise average wage can be challenging due to variations across industries, job roles, and employment types, including formal versus informal sectors.

The minimum wage is a legally mandated income floor, establishing the lowest amount an employer can pay workers. It is a social policy tool ensuring a basic standard of living. While the minimum wage provides a safety net for lower-income workers, it often does not reflect broader economic conditions or the earnings of most of the workforce.

Current Average Income Statistics

Colombia’s economic landscape presents varied income figures depending on the metric observed. Gross Domestic Product (GDP) per capita, a broad indicator of economic output per person, stood at approximately $6,873.42 USD in 2024 (nominal). Adjusted for purchasing power parity (PPP), which accounts for cost of living differences, Colombia’s GDP per capita reached around $18,504 USD in 2024. This PPP figure suggests higher buying power compared to its nominal value.

The national average monthly salary in Colombia in 2024 ranged between approximately 4,690,000 COP and 4,710,000 COP. This translates to about $1,060 USD to $1,075 USD per month, depending on the exchange rate. These figures represent an average, and actual salaries can vary significantly across different professions and regions.

Colombia’s minimum wage increased for 2025, reaching 1,423,500 COP per month. This includes a base wage and, for eligible employees earning up to two minimum wages, a transportation subsidy of 200,000 COP. In U.S. dollars, the 2025 minimum wage is approximately $352.66 USD per month, based on a recent exchange rate. This legally mandated minimum provides a baseline income for workers, reflecting efforts to adjust for inflation and living costs.

Income Disparities Across Regions and Sectors

Average income figures often mask significant disparities across regions and economic sectors within Colombia. A notable division occurs between urban centers and rural areas. Cities like Bogotá consistently report higher average salaries, around 5,420,000 COP (approximately $1,225 USD) per month. Medellín also shows competitive salaries, reflecting growing economic activity. These urban hubs benefit from concentrated formal employment opportunities, particularly in sectors requiring specialized skills.

In contrast, remote or less developed departments like Chocó, La Guajira, and Cauca experience substantially lower income levels and higher poverty rates. Income in these regions can be less than half the national average, with some areas exhibiting per capita incomes eight times lower than Bogotá. This regional disparity is partly due to a lower share of formal employment and limited access to services and economic opportunities.

Income also varies considerably by economic sector. Industries like finance, technology, and advanced services offer significantly higher salaries compared to traditional sectors like agriculture or the informal economy. For instance, while the overall average salary is around 4,710,000 COP, software engineers can earn an average of 11,015,980 COP (approximately $2,500 USD). A substantial portion of the Colombian workforce operates in the informal sector, where earnings are typically below minimum wage and lack formal protections or benefits.

Cost of Living and Purchasing Power

Understanding average income in Colombia becomes more meaningful when viewed through the cost of living, which directly impacts purchasing power. Colombia generally has a lower cost of living compared to many developed nations, making average income stretch further for essential goods and services. Estimated monthly costs for a single person, excluding rent, can be around $536 USD, while a family of four might expect costs of approximately $1,867 USD, excluding rent.

Housing costs, a significant component of living expenses, vary considerably. Rent for a one-bedroom apartment in major cities like Bogotá or Medellín can range from COP 1.5 million to 3 million per month ($380 to $770 USD). In smaller towns or rural areas, rent prices drop significantly, offering more affordable options. The “estrato” system, a socioeconomic classification, influences utility costs, with lower-income neighborhoods paying reduced rates for electricity, water, and gas compared to higher-income areas.

Utilities for a typical apartment, including electricity, water, and gas, might range from COP 200,000 to 500,000 ($50 to $130 USD) monthly, with internet costing around COP 70,000 to 97,000 ($18 to $24 USD). Food expenses are generally affordable, especially when relying on local markets and traditional meals. A hearty local lunch can cost as little as COP 15,000 to 20,000 ($3.50 to $5 USD), while street food is even cheaper. Public transportation is inexpensive, with local bus fares often below $1 USD. These lower costs contribute to a reasonable standard of living for many, despite income levels that may appear modest by international standards.