What is Salario mínimo?
The SMMLV is the lowest salary that can be paid for a full working day in Colombia. The Government sets it each year and it serves as a reference for many labor calculations.
Those earning up to two SMMLV are also entitled to the transport allowance (auxilio de transporte), which is added to salary for the purpose of some benefits.
In practice
Every January the payroll team checks that no full-time worker earns below the current SMMLV, and adds the transport allowance where it applies.