Country Guides

Colombia

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Capital

Bogotá

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Language

Spanish

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Remote workers

N/A

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Currency

Colombian peso (COP)

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Working hours

44 hours per week until 15th of July 2026 / 42 hours from 16th of July 2026

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Public holidays

18 days

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Minimum wage

COP 1,750,905 per month

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Tax year

Jan 1 - Dec 31

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Date format

DD/MM/YYYY

Misclassification penalties

According to the Colombian Labour Code, when a working relationship involves personal service, subordination, and remuneration, it is considered an employment relationship, regardless of how the contract is formally designated. If a worker is instead treated as an independent contractor, this may be deemed misclassification, which can result in back payment of benefits, retroactive social security and parafiscal contributions, as well as fines, penalties, and potential labour claims or litigation.

Fun fact

Colombia is the only South American country with access to both the Pacific Ocean and the Caribbean Sea.

Employer contributions

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    Employment tax: 4-9%, depending on salary: Colombian Welfare Institute (3%), National Apprenticeship System (2%) and Family Funds (4%)
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    Social security contributions: 21%-27.5%

Social security contributions: Mandatory Health Plan (EPS)

Contribution amount: 8.5%

Social security contributions: Mandatory pension fund (AFP)

Contribution amount: 12%

Social security contributions: Occupational risk (ARL)

Contribution amount: 0.5% - 6.96%

EMPLOYEE CONTRIBUTIONS

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    Income tax: 0%-39%
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    Social security contributions: 8%

Social security contributions: Mandatory Health Plan (EPS)

Contribution amount: 4%

Social security contributions: Mandatory pension fund (AFP)

Contribution amount: 4%

INCOME TAX

Not over (COP): 57,089,660

Marginal rate (%): 0%

Over (COP): 57,089,660

Not over (COP): 89,035,800

Marginal rate (%): 19%

Over (COP): 89,035,800

Not over (COP): 214,733,400

Marginal rate (%): 28%

Over (COP): 214,733,400

Not over (COP): 454,091,580

Marginal rate (%): 33%

Over (COP): 454,091,580

Not over (COP): 993,535,780

Marginal rate (%): 35%

Over (COP): 993,535,780

Not over (COP): 1,623,594,000

Marginal rate (%): 37%

Over (COP): 1,623,594,000

Not over (COP): And up

Marginal rate (%): 39%

Employer of Record in Colombia

What is an EOR?

An Employer of Record is the legal employer of a worker in Colombia. As such, the Employer of Record takes care of all Colombian compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.

EOR responsibilities

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    Ensuring their employment is compliant with local employment laws
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    Processing local payroll
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    Filing employment related taxes and returns
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    Issuing payslips to the employee
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    Distributing salary payments

How it works

  • Company

    Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

  • Boundless

    Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

  • Employee

    Signs an employment contract with Boundless and fulfils all of their obligations as a worker for the company.

Statutory benefits in Colombia

  • Public health insurance

    Public health insurance is mandatory in Colombia. This is part of the country's universal health care system, which is known as the Sistema General de Seguridad Social en Salud (SGSSS).

  • Social security

    Key aspects of social security in Colombia include Health Insurance, Pensions and Occupational Risks Insurance. Both employers and employees in Colombia are required to make contributions to the social security system.

  • Severance fund

    This is a benefit provided to employees whereby the employer makes a deposit into a designated account at the beginning of the year and is also required to pay interest on that amount. When an employee leaves the organisation—whether due to termination, resignation, or a change of employer of record (EOR)—the accumulated balance must be paid out to the employee.

Common non-mandatory benefits in Colombia

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    Wellness programs
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    Flexible working hours
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    Remote work or hybrid work
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    Professional development

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    Employee assistance programs
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    Birthday leave
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    Educational support
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    Complimentary food and snacks
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    Medical check-ups
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Occupational health and safety compliance

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Protection against discrimination

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Paid leave

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Public holidays

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13th-month salary/Christmas bonus

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Severance pay

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Data protection

Paid time off

15 paid days

Sick leave

180 days. The employer pays first 3, 4th day onwards by social security

Maternity leave

18 weeks

Paternity leave

14 calendar days

Childcare leave

10 paid working days per year for children with serious or terminal illness

Probation

In Colombia, the probation period may not exceed two months. For fixed-term contracts of less than one year, it is limited to one-fifth of the contract duration. Additionally, a probation period may only be applied to the first contract between the same parties.

Working hours & overtime

In Colombia, overtime is subject to statutory limits and may not exceed two hours per day and twelve hours per week, regardless of whether it is performed during day shifts or night shifts.

Payment frequency & payday

Salaries in Colombia are generally paid on a monthly basis or bi-weekly. Salaries are typically paid at the end of the month, or, in the case of bi-weekly payments, on the 15th and the last working day of the month. The 13th-month payment, known as the “Prima de Servicios,” is paid separately in two instalments: 50% by June 30 and 50% by December 20.

Additional payments

Employees who earn up to 2 times the minimum wage, are employed under an employment contract and require transportation to commute to work, receive a mandatory transportation allowance, which is equivalent to COP 249,095 per month.

In Colombia, termination of an employment contract may occur for several reasons, including the expiry of a fixed-term contract, the employee’s death, mutual agreement, redundancy, suspension of activities for more than 120 days, or unilateral resignation by the employee.

In certain circumstances, such as redundancy or suspension of activities, the employer must obtain prior authorisation from the Ministry of Labour and notify the employee in writing. Failure to comply with legal requirements may result in fines, compensation payments, and potential labour claims or litigation.

FAQs

When considering hiring in Colombia, four paths exist. You can run payroll from your HQ for short-term arrangements, engage contractors for project-based work, set up a local entity to hire directly, or partner with an Employer of Record. Each option involves different compliance and operational effort. However, an EOR allows compliant Colombian employment without setting up a local entity.

Contractors work well when the relationship is project-based, and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Colombia, employment is the right structure under Colombian law, covering entitlements like paid annual leave, sick leave, and social security contributions. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Colombia.

HR compliance in Colombia means your policies and procedures respect all applicable Colombian employment laws and regulations. When you hire in Colombia, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave (180 days), annual leave (15 days), minimum wage (COP 1,750,905/month), tax credits, and a 44-hour working week. Following these is fundamental for running the business well.

An Employer of Record is the legal employer of the individual in Colombia for government, tax, and employment purposes. It provides a locally compliant contract, runs payroll, files employment taxes, and manages statutory benefits such as 18 weeks of maternity leave and the prima de servicios (13th-month payment). You remain responsible for sourcing workers, managing day-to-day work, and funding payroll each cycle.

Boundless partners with employment lawyers and advisers in each country we operate in, including Colombia. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.

Employees locally employed through an Employer of Record in Colombia receive full statutory rights under Colombian law. Both employers and employees pay social security contributions; employers contribute 21-27.5% while employees contribute 8%. Employees also pay progressive income tax of 0-39% depending on salary. Use the salary breakdown calculator for exact figures.

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