We study the macroeconomic effects of the minimum wage in a small, open, emerging market economy. To this end, we specify an extended New Keynesian small open economy model that includes heterogeneous households, a flexible production structure, and a minimum wage rule. We calibrate the model for Colombia, a typical emerging market country with a large informal sector and a high minimum wage relative to the median wage. The analysis examines how an unexpected increase in the minimum wage affects key macroeconomic aggregates, and how the minimum wage affects the transmission of conventional economic shocks. Our study finds that an unexpected increase in the minimum wage has significant effects on low-skilled workers and weaker effects on inflation and the monetary policy rate. Our model highlights the importance of informality and capital accumulation in machinery as key adjustment mechanisms. The increase in the minimum wage raises production costs and induces the substitution of formal low-skilled workers with informal workers and machinery, resulting in lower output, higher inflation, and higher policy interest rates. We also find that the minimum wage affects the transmission of productivity, demand, and monetary shocks, leading to a more persistent impact on macroeconomic variables and a less effective monetary policy to control inflation. Finally, we observe that increasing the minimum wage reduces consumption inequality only in the short run. Overall, our results suggest that the minimum wage has important macroeconomic implications and affects emerging economies through different channels than in developed economies. This paper contributes to the literature on the general equilibrium effects of the minimum wage and provides insights for policymakers in emerging economies.