Hire in Colombia without the complexity
Workmate enables you to hire in Colombia quickly and cost-effectively—no local entity required. Our Employer of Record (EOR) solution manages onboarding, payroll, and benefits, ensuring a smooth, compliant hiring process so you can focus on growing your business.
COP
Currency
Bogotá
Capital
49 million
Population
Spanish
Official language
What is an employer of record ?
As an Employer of Record (EOR) in Colombia, we act as the legal employer for your employees living in the country, handling all employment responsibilities and liabilities on your behalf. We manage everything end-to-end, including payroll, benefits, taxes, and compliance. By partnering with Workmate, you can hire employees in Colombia without the complexities of setting up a local entity or navigating intricate labor regulations.
Guide to hiring in Colombia
Explore the topics below to discover everything you need to know about hiring employees in Colombia
Payroll & Wage
Minimum wage
The minimum wage is 1,423,500 COP per month ($494 CAD), and the minimum integral salary would be 18,505,500 COP ($6,427 CAD). The integral salary in Colombia is a special salary structure for high-earning employees, which includes all legal benefits in a single payment.
Overtime
Overtime pay is mandatory for employees earning less than COP 13,000,000 per month. Employees eligible for overtime can work a maximum of two overtime hours per day and up to 48 hours per week in total. The standard work schedule consists of eight hours per day, 40 hours per week, from Monday to Friday. Under Law 2101 of 2021, the maximum weekly working hours in Colombia are being gradually reduced from 48 to 42 hours over the coming years.
Social security
The employer cost applies to a maximum contribution basis is COP 32,500,000 per month. For employees with ordinary salaries, the social security costs are calculated on 100%. Whereas the cost are calculated on 70% for integral salaries.
Monthly contributions:
Pension fund - 12%
Labour risk - 0.5% to 8.7%
Public health - 8.5%
Family welfare management (CCF) - 4%
Family welfare (ICBF) - 3%
Apprenticeship funds (SENA) - 2%
Other contributions:
Severance fund - 1 month salary paid annually
Interest on severance fund - 12% per annum on the balance of each year’s severance aid
Service bonus - 1 month salary
Taxes
Colombia’s individual income tax follows a progressive structure depending on annual income.
Up to COP 38,812,000 → 0%
COP 38,812,001 – COP 60,532,000 → 19%
COP 60,532,001 – COP 145,989,000 → 28%
COP 145,989,001 – COP 308,713,000 → 33%
COP 308,713,001 – COP 675,465,000 → 35%
COP 675,465,001 – COP 1,103,817,000 → 37%
Over COP 1,103,817,000 → 39%
Leave entitlements
Vacation
Employees have 15 days for each year of service, after one year of service. They must use at least six annual leave days a year.
Parental leaves
Maternity leave:
Employees have 18 weeks of paid leave, where 7 days must be taken prior to the child's birth. The maternity leave is paid by the employer at 100%, but is reimbursed by social security system.
Paternatiy leave:
Employees have 2 weeks of paid leave afther the child's birth.
Sick leave
Employees have 15 days for each year of service, after one year of service. They must use at least six annual leave days a year.
Holidays
Employees have 15 days for each year of service, after one year of service. They must use at least six annual leave days a year.
Terminations
Notice period
In most cases, 10 calendar days’ notice is required. However, no notice period applies if the employee resigns or if termination is by mutual agreement.
Severance pay
Employees terminated without cause are entitled to severance payments in all of the amounts described below.
Employees on indefinite contracts
30 days of wages for the first year
+ 20 days of wages for each additional year of service
Employees on fixed-term contracts
All payments owed for the rest of the contract, including the bonuses and benefits
Other details
Employment agreements
Agreements or contracts must be in Spanish or bilingual. The following terms are required:
Probation period
Termination conditions
Ordinary or integral salary
Non-salary payments
If fixed-term employment agreements are not agreed in writing, it is implied that the agreement is for an indefinite term.
Probation pediod
In Colombia, the maximum probationary period is two months for indefinite-term contracts and one-fifth of the total contract duration for fixed-term contracts.