Hire and pay employees in
Colombia, hassle-free

The individual income tax ranges from 0% to 39%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

The calculation of employer costs for social security varies based on the type of salary the employee receives. For employees with ordinary salaries, the social security costs are calculated on 100% of the employee's salary, up to a maximum basis of COP 32,500,000 for 2024.For employees with integral salaries, social security costs are calculated on 70% of their salary, up to the same maximum basis.

Please note: EOR employees in Colombia are entitled to a minimum of 15 days of paid vacation a year. These 15 days of paid vacation are equal to 4.17% of the employee's gross annual salary. 

Monthly Costs
- Pension fund - 12%
- Labor Risk - 0.52%-6.96% based on the employee's job title and risk level
- Family fund management (CCF) - 4%
- Social Security, Public Health - 8.5%
- Family Fund "ICBF” - 3%
- Training funds "SENA” - 2%
- Law Quote 2023 "SENA" - COP 34,615
- Work From Home Allowance - USD 32

Annual and Bi-annual Costs for Employees on Ordinary Salaries
- Legal Service Bonus (13th Month Salary)* - 1 month salary
- Severance Fund Contribution (14th Month Salary) - 1 month salary
- Interest on Severance Fund Contribution - 12% of the 14th Month Salary

*Paid 50% in June and 50% in December

Conditional Costs
- Legal Connectivity Allowance - COP 140,606 prorated based on days worked, only for employees with salaries under 2 minimum legal wages

Overtime payment is mandatory for employees earning below COP 13,000,000 per month. Hours outside of standard work hours are considered overtime. For additional hours, employees are paid an additional:
- 25% of the hourly rate on a standard workweek
- 75% of the hourly rate for night shifts, Sundays, and holidays
- 150% of the hourly rate for night shifts on Sundays and holidays
Employees who are entitled to overtime pay can work a maximum of two hours of overtime per day and a maximum of 48 total hours per week.

Standard working hours are eight hours per day, 40 hours per week. The standard workweek is from Monday to Friday. As per Law 2101 of 2021, the maximum weekly working hours for employees in Colombia must be progressively reduced from 48 to 42 hours in the next few years.
This change does not affect employees’ salaries and benefits. 
The maximum weekly working hours will be reduced every year on July 15 from 2023 to 2026: 
- 2023: From 48 to 47 hours.
- 2024: From 47 to 46 hours.
- 2025: From 46 to 44 hours.
- 2026: From 44 to 42 hours. 
The reduction in the maximum weekly working hours will stop on July 15, 2026. 

Employees are entitled to 126 days of paid leave. Seven days must be taken before the child's birth. The employee will receive 100% of their average salary during this period, paid by the employer and reimbursed by Social Security.

The employee can’t extend leave.

Employees are entitled to 14 days of paid paternity leave that must be taken after the child's birth. The employee will receive 100% of the salary during this period, paid by the employer and reimbursed by Social Security.

The employee can’t extend leave.

Employees are entitled to paid sick leave for up to 540 days. This leave is paid at different rates and by different payers depending upon the length:

If the sick leave is originated by an accident at work, the employee will receive 100% of the base salary during leave and the insurer will be responsible for the payment.

Generally, there are 5 ways to terminate an employee compliantly in Colombia.

• Termination With Cause
• Termination for Redundancy or Other Business Reasons
• Resignation
• Mutual termination
• Termination during the probation period
  

• Termination With Cause: 10 calendar days
• Termination for Redundancy or Other Business Reasons: 10 calendar days
• Resignation: None
• Mutual termination: None
• Termination during the probation period: As stated in Employment Agreement

Termination With Cause: No legal requirements

Termination for Redundancy or Other Business Reasons:

For employees on indefinite contracts, based on years of service:
≤ 1 year of service: 30 days' pay
For each additional year of service: 20 days' pay
For employees on fixed-term contracts:
All payments owed for the rest of the contract, including monthly salary, 13th and 14th salaries and all other statutory benefits which would be owed during the term of the contract.
*Note: Additional payment may be required to secure release from potential future claims.

Resignation: No legal requirements

Mutual termination: No legal requirements. However, it is recommended to offer a severance to reduce the risk of the mutual agreement being contested in court.

Termination during probation period: No legal requirements

Colombia celebrates 18 national holidays. National public holidays include:

• New Year’s Day
• Three Kings Day
• Saint Joseph Day
• Holy Thursday
• Good Friday
• Labor Day
• Ascension Day
• Corpus Cristi
• Sacred Heart
• Saint Peter and Saint Paul
• Independence Day
• Battle of Boyacá
• Assumption of the Virgin Mary
• Colombus Day
• All Saints Day
• Independence of Cartagena
• Immaculate Conception Day
• Christmas Day

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• name
• start date
• length of the employment
• job description
• termination conditions
• type of contract: integral or ordinary