Employer of record in Colombia: costs, rules and how to hire
Hire someone in Colombia without opening your own Colombian company.
An employer of record (EOR) can handle local employment while you manage the person’s work. Start by confirming the provider’s coverage and the arrangement available for your specific hire.
By Employ Borderless · We help you understand and compare EOR services.
How does an employer of record in Colombia work?
Three parties, two contracts: the EOR employs the person under a local employment contract, your company signs a service agreement with the EOR and directs the day-to-day work. Which arrangement is legal and sensible in Colombia is decided by the questions below.
Your company
Choose the person, agree their role and manage their daily work.
The employer of record
Handles the agreed employment, payroll and HR services through the employing entity named in your contract.
Your employee
Works with your team under a local employment contract with the EOR’s employing entity.
- Do you already have an entity in this country?
- How many people are you hiring, and for how long?
- Is the work genuinely independent, or is it a job?
- Who carries the employment risk if the arrangement is challenged?
What each route means in full
- Your own entity
- Choose it when: You already have a company here, or you are committing to a substantial local team for the long term.You become the legal employer. You arrange payroll, benefits, filings and employment support yourself, and you carry the setup and running cost.
- Employer of record
- Choose it when: You have a person to hire here, want them employed properly, and do not want to open a company for it.The provider is the legal employer through its own entity. You direct the work and pay one invoice covering salary, employer costs and the service fee.
- Independent contractor
- Choose it when: The work is genuinely independent: their own business, their own methods, their own clients.A contract for services, not employment. The label does not decide the status; how the person actually works does, and getting it wrong is reclassified after the fact.
Hiring in Colombia: the short version
Start from a real number. On a COP 5,000,000 monthly salary with a 0.522% work-risk rate, employer pension is COP 600,000, family compensation COP 200,000 and work-risk insurance COP 26,100, giving a subtotal of COP 5,826,100 if the employer health, SENA and ICBF exemptions apply, or COP 6,501,100 if they do not. That COP 675,000 swing depends on the employer's own tax position rather than on anything about your hire, so ask which side of it your provider sits on.
The other thing worth knowing early is that the working day was redrawn. Since 25 December 2025, night work runs from 7 p.m. to 6 a.m. with a 35% premium, and from 1 July 2026 the premium for work on the mandatory rest day or a public holiday is 90%, reaching 100% from July 2027. A Colombian employee covering a North American afternoon is now on night rates for part of it.
Your first hire in Colombia in five decisions
Five things settle a Colombian hire, and the figures behind each are worked through further down this page.
- Entity or EOR. For work within your normal business activities, the client can be jointly liable with a contractor for wages, benefits and compensation.
- Employee or contractor. Personal work, continued subordination and pay are the main elements of employment, whatever the agreement is called.
- Budget line. Employer pension of 12%, family compensation of 4%, a risk rate between 0.348% and 8.7%, plus health, SENA and ICBF unless exempt.
- Notice reality. No service-based notice ladder, but dismissal without just cause costs thirty days of salary for the first year and twenty for each later year below ten minimum wages.
- Realistic start. After the written contract, the contribution registrations and, for a foreign hire, the M worker visa.
EOR, entity, or contractor in Colombia?
Colombia limits how long a temporary-staffing arrangement can cover an ongoing need, so the route decision has a clock attached to it.
Compare the arrangement and full cost
If your Colombian entity employs the person, you can buy payroll or HR support while retaining employer duties, and a PEO or EOR service name does not settle who is legally responsible. Compare the permitted arrangement, employer support, payroll accuracy, fees, deposits, exit costs and the process for moving employment to your own entity. Have the provider explain any client liability in the actual arrangement.
For work within the client's normal business activities, the client can be jointly liable with a contractor for workers' wages, benefits and compensation, while genuine contractors operate with their own means, risk and technical or managerial autonomy. Temporary staffing has separate limits: replacement needs and qualifying temporary work are permitted, and a production or service increase is normally limited to six months plus one extension of up to six months. Changing agencies does not reset an ongoing need.
| Decision | Questions for the provider |
|---|---|
| Legal arrangement | Who employs and directs the person, and why is the model permitted? |
| Cost | Which contributions, benefits, fees, deposits and exit costs are outside the salary? |
| Employee support | Who handles pay questions, leave, complaints and workplace concerns? |
| Future plans | How would employment move to your own entity, and what happens to existing rights? |
Compare these answers against the role and the support your business can provide. There is no single headcount at which an EOR automatically becomes less suitable than direct hiring.
Moving from an employer of record to your own Colombian entity
Plan this around the severance and the service bonus, because both are calculated on service and pay and both are paid on fixed dates, which makes any discontinuity visible to the employee immediately.
Settle in writing before the move: whether service with the provider counts towards seniority and the severance calculation; who holds or settles the accrued severance and its interest; how the service bonus in progress is apportioned; and how the health, pension and occupational risk affiliations are sequenced so there is no uncovered day.
I have not read a Colombian government source on employer substitution in this pass, so I am not going to describe how it works. Colombia does recognise employer substitution with its own rules on accrued obligations and on the liability of the outgoing employer, and that is the question to put to a Colombian adviser before you move anyone.
How to hire employees in Colombia
Three routes are open, and the written contract is not optional for the fixed-term ones since the 2025 reform.
Work through five hiring steps
Five steps run from the job definition to the first day.
| Step | What to agree |
|---|---|
| 1. Define the role | Work location, duties, reporting line, hours and permission to work |
| 2. Check the employer | Employing entity, lawful arrangement, registrations and employee support |
| 3. Build the offer | Salary, statutory benefits, allowances, extra benefits and service fees |
| 4. Complete the documents | Written contract, policies, payroll information and required permissions |
| 5. Prepare the start | Equipment, pay dates, leave process, safety and contact details |
A written employment contract should identify the parties, role, work location, salary, payment schedule, duration and termination terms, with a copy for each party, and should record working hours, remote arrangements, benefits and applicable policies. Fixed-term and defined-task contracts require writing under the 2025 reform. Use terms the employee can understand and arrange an appropriate Spanish version for local administration and disputes.
Set the start date after the provider confirms the outstanding documents and registrations, and ask for an expected completion date for each remaining step.
How long the first hire takes, and what sets the date
Registration with the social security system sets the date in Colombia, and it precedes the first working day rather than following it.
So rather than a number of weeks, here is the sequence, in the order the steps actually gate each other. Work backwards from whichever one is unresolved in your case, because that is the one holding your date and the rest will not be.
- Agree the offer and the written terms, and settle the salary structure, since Colombia's integral salary option changes how several statutory extras work.
- Confirm the right to work, and where a visa is needed, treat that procedure as the critical path.
- Have the employing entity affiliate the person to health, pension and occupational risk cover before work starts.
- Settle how the service bonus, the severance and its interest are provisioned, since all three fall due on fixed dates.
- Land the start date on the payroll cut-off so the first month and the holiday accrual begin together.
Ask for the annual employer cost including the service bonus, the severance and its interest. In Colombia those three are most of the gap between salary and cost.
What should you budget for hiring in Colombia?
Your budget includes salary, employer contributions, agreed benefits and the EOR fee. Ask for a quote for the actual role and salary.
- Gross salary
- Employer contributions
- Benefits and other costs
- EOR service fee
- Gross salary: 100
- Employer social contributions: 16.5%
- Benefits and EOR fee: quoted per hire
The numbers behind this figure
| Cost | Amount |
|---|---|
| Gross salary | 100 |
| Employer social contributions | 16.5% |
| Benefits and EOR fee | Quoted per hire |
Source: PwC Tax Summaries, 2026
Published EOR base fees among providers covering Colombia range from $99 to $699 per employee/month. These are provider base prices, not a quote for this hire or the total employment cost.
Employer contribution benchmarks · 2025
These stored OECD benchmarks help with initial planning. Earnings ceilings, employee circumstances and later changes can affect the actual charge; use the EOR’s itemised quote for your budget.
| Contribution | Rate |
|---|---|
| Employer social contributions | 0% |
Separate each employer contribution
Ordinary pension contributions total 16% of the applicable contribution base: 12% paid by the employer and 4% withheld from the employee, and higher-paid employees can also owe solidarity-fund contributions. Colpensiones' statement updated in September 2026 describes the general pension system under Law 100 as the operative framework while the 2024 reform remains suspended. Check the employee's regime and any special rules before filing payroll.
The ordinary health contribution is 12.5% of the contribution base, split between 8.5% for the employer and 4% for the employee. Qualifying employers can be exempt from their 8.5% share for employees earning below ten monthly minimum wages, though that exemption does not remove the employee's 4% contribution or the employer's duty to arrange coverage and report correctly.
Ordinary employer payroll charges include 4% for the family compensation fund, 2% for SENA and 3% for ICBF on the relevant payroll base. The Article 114-1 exemption can remove SENA and ICBF charges for qualifying employers and employees, but does not remove the family compensation contribution. Confirm the actual employer's eligibility and the base used for each payment.
Qualifying corporate income-tax declarants can be exempt from employer health, SENA and ICBF contributions for employees who individually earn less than ten monthly minimum wages, and exactly ten minimum wages does not meet that earnings test. Different conditions apply to individuals, special tax-regime entities and other employer types. Ask the EOR to document its eligibility instead of applying one reduced rate to every provider or hire.
The employer pays occupational-risk insurance at the rate assigned to the activity and risk classification. The statutory rate range described by the OECD is 0.348% to 8.7%, and its wage model uses 0.522% as a representative rate. Use the actual assigned rate for the employee's work, because the 0.522% figure in the cost example is an assumption rather than a universal rate for Colombian employment.
Ordinary health and pension contributions use a statutory base, generally bounded by one and twenty-five monthly minimum wages, which at the 2026 wage floor means COP 1,750,905 and COP 43,772,625. Special arrangements and payroll events can affect the calculation. UGPP checks omitted registrations, an understated contribution base and late monthly payments, so a contribution rate alone does not establish the correct bill.
| Component | Employer | Employee |
|---|---|---|
| Pension | 12% of the applicable base | 4%, plus solidarity contribution where applicable |
| Health | 8.5%, or exempt where the conditions are met | 4% |
| Family compensation | 4% of the relevant payroll base | No ordinary employee share |
| SENA | 2%, or exempt where the conditions are met | No ordinary employee share |
| ICBF | 3%, or exempt where the conditions are met | No ordinary employee share |
| Occupational risk | Assigned risk rate | No ordinary employee share |
What an employer of record adds to the employment cost
Budget the provider fee as a third line, next to gross pay and the employer contributions above. Across the market it runs from $99 to $799 per employee per month, or 8 to 20% of salary, and where a quote sits in that range is decided by the work rather than by the country: headcount, how much of the administration you hand over, and whether the provider is pricing a single hire or a team. I treat a quote at the bottom of the range as a question rather than a win, because the cheap number is usually the one with the fewest things inside it.
What the fee buys is the employment itself: the employing entity, the payroll run, the filings and the employer-side administration. What it does not buy is the cost of employing the person. Gross pay, the employer contributions, the mandatory service bonus, the severance and its interest, and the transport allowance where it applies are yours. Those statutory extras are why the Colombian annual cost is well above twelve monthly salaries. Ask for a quote that separates the fee from the pass-through costs, priced in Colombian pesos, because a single blended figure hides which half moves when pay changes.
Average salary in Colombia by occupation
Gross monthly earnings of employees per ISCO-08 occupation group, in COP, from the ILO's official labour statistics. These stored survey figures for Colombia have reference year 2025. Use these survey earnings to benchmark an offer before an EOR quote turns it into total employer cost.
| Occupation group | Monthly (COP) | Approx. USD |
|---|---|---|
| All occupations | 2,022,657 | $499 |
| Managers · ISCO 1 | 3,527,584 | $870 |
| Professionals · ISCO 2 | 3,858,796 | $952 |
| Technicians and associate professionals · ISCO 3 | 2,513,615 | $620 |
| Clerical support workers · ISCO 4 | 1,878,418 | $463 |
| Service and sales workers · ISCO 5 | 1,537,543 | $379 |
| Skilled agricultural, forestry and fishery workers · ISCO 6 | 1,358,445 | $335 |
| Craft and related trades workers · ISCO 7 | 1,584,286 | $391 |
| Plant and machine operators and assemblers · ISCO 8 | 1,684,185 | $416 |
| Elementary occupations · ISCO 9 | 1,260,128 | $311 |
Source: ILOSTAT, the International Labour Organization's statistics database (average monthly earnings of employees, both sexes), reference year 2025.
How to hire through an EOR in Colombia
- Step 1
Define your hire
Prepare the role, work location, salary, working hours and target start date.
- Step 2
Confirm the local hiring route
Ask the provider to confirm that its employing arrangement fits this role and location, including any restrictions.
- Step 3
Review the full quote and contract
Check the legal employer, total costs, benefits, responsibilities and exit terms before signing.
- Step 4
Complete onboarding
Coordinate employment documents, required checks, equipment and the payroll cut-off with the EOR.
- Step 5
Keep employment changes coordinated
Manage the work and tell the EOR about proposed pay, leave, contract or termination changes before they take effect.
What should the EOR arrange before your hire in Colombia starts?
Confirm the employment terms, work eligibility, payroll and pension arrangements before the start date. Ask which local rules and agreements apply to your employee.
What catches employers out in Colombia
The fourth row is the one that changes how a Colombian team can work with an overseas one, and it took effect only recently.
Resolve these points before signing
Ask the provider to answer each of these against the actual employer, employee and start date.
| Point | Why it matters |
|---|---|
| Temporary staffing | Permitted needs and duration limits cannot be bypassed by changing providers |
| Four-year fixed-term limit | The 2025 reform changed the older renewal rules |
| July 2026 working week | The ordinary weekly limit is now forty-two hours |
| Night and rest-day pay | Night work starts at 7 p.m.; the phased rest-day premium is now 90% |
| Employer exemptions | Health, SENA and ICBF exemptions depend on the actual employer and earnings |
| Annual benefits | Prima, cesantías and interest are separate cost components |
| Paternity proposals | A bill to extend leave is not a current entitlement |
The sections below explain each point, with reviewed facts and their source dates. Confirm any special industry, collective or individual terms before making the offer.
What types of employment contracts exist in Colombia?
The 2025 reform made indefinite employment the standard form and capped fixed terms at four years including renewals, which stranded a number of older provider templates.
Write down the terms
A written employment contract should identify the parties, role, work location, salary, payment schedule, duration and termination terms, with a copy for each party. Record working hours, remote arrangements, benefits and applicable policies as well. Fixed-term and defined-task contracts require writing under the 2025 reform. Use terms the employee can understand and arrange an appropriate Spanish version for local administration and disputes.
Indefinite employment is the standard hiring form under the 2025 reform. Fixed-term contracts must be written and cannot run beyond four years through renewals, and for contracts already in force when the reform began the four-year count starts from 25 June 2025. Renewal rules differ for agreed and automatic extensions of terms below a year. A defined-task contract must describe the work precisely, because missing conditions or continued work can create indefinite employment.
Set probation and workplace policies
Probation must be written and cannot exceed two months, with a further limit for short fixed terms.
| Arrangement | Probation limit |
|---|---|
| Ordinary contract | Up to two months, agreed in writing |
| Fixed term shorter than one year | Up to one fifth of the initial term, also capped at two months |
| Successive contracts with the same employer | No new probation after the first contract |
Employees retain statutory benefits during probation, and the ability to end probation without notice does not remove protection against unlawful discrimination or protected-status dismissal.
The 2025 reform requires a fair process for disciplinary sanctions: written allegations, access to the evidence, at least five days to respond, a reasoned decision, proportionality and an opportunity to challenge it. Qualifying union representation and disability adjustments also apply, and employers had twelve months to update their work rules. Domestic employers and qualifying micro or small businesses with fewer than ten workers have a narrower procedure but must still hear the employee and respect defence rights.
Check classification and ownership
Personal work, continued subordination and pay are the main elements of employment, and when those elements exist the name of the agreement does not remove employment rights. Assess who controls the work, working arrangements and the person's independence before engaging a contractor, because a services invoice, foreign client or remote workplace does not by itself prevent employment classification.
The Labour Code makes a promise not to work in an activity or for a competitor after employment ineffective. Do not treat the historical, struck-down exception for certain technical workers as current permission. Use appropriate confidentiality protections during and after employment, and get advice on protecting trade secrets without restricting the employee's right to work.
The author starts with copyright and moral rights. For work created under a written employment or services contract, economic rights are presumed transferred to the employer or commissioner to the extent needed for its usual activities, unless agreed otherwise. With an EOR, confirm the rights that the employer receives and the written transfer or licence to your business. Moral rights and inventions need their own treatment, so do not assume every right passes automatically to the client.
Record remote work and support
Agree the remote-work form, location, hours, equipment, expenses, safety arrangements and employee support. The 2025 reform recognises several telework forms, including hybrid and transnational work, and employers must maintain a policy supporting the right to disconnect, with a complaint process and applicable exceptions. Working from home does not remove statutory pay, leave, contribution or safety obligations.
The 2025 telework amendment requires a connectivity allowance in place of transport support for teleworkers earning less than two monthly minimum wages, equal to the current transport allowance of COP 249,095 in 2026. The employee receives one of the two allowances rather than both. The connectivity payment is not salary but is included in the statutory-benefit base under the stated conditions, so check the exact earnings threshold and applicable remote-work regime.
Use the correct apprenticeship arrangement
The 2025 reform treats apprenticeship as a special fixed-term employment contract of up to three years. Traditional training has minimum support of 75% of the monthly minimum wage during the teaching phase and 100% during the practical phase, while dual training has separate first- and second-year rules. The practical phase and dual training include the prescribed employment benefits and insurance. Use the correct scheme and assess any SENA quota rather than treating an ordinary hire as an apprentice.
Misclassification risk, and the three elements
Colombia reduces this to three elements, and where they are present the paperwork stops mattering. Personal work, continued subordination and pay are the main elements of employment, and when those elements exist the name of the agreement does not remove employment rights. Source: the approved Colombian contractor-status guidance, funcionpublica.gov.co, checked 18 September 2026.
Continued subordination is the element that decides it, and the guidance then closes the three arguments hirers raise: a services invoice, a foreign client or a remote workplace does not by itself prevent employment classification. If you are a foreign company engaging a Colombian on an invoice to work remotely for your team, that sentence is about you. Source: the approved Colombian contractor-status guidance, checked 18 September 2026.
What a hirer does about it: assess who controls the work, the working arrangements and the person's independence before engaging a contractor, and price the alternative properly, since a Colombian employment relationship carries the service bonus, the severance and its interest on top of the contributions.
Start with the 2026 minimum and eligibility
The 2026 statutory monthly minimum is COP 1,750,905. Decree 159 of 19 February 2026 fixes this amount provisionally after the earlier wage decree was suspended, with its duration tied to the court proceedings. Eligible transport support is separate. Confirm the rate and legal position for the payroll period, together with any higher binding wage terms, because the combined wage and transport amount is not the wage floor for every employee.
The 2026 monthly transport allowance is COP 249,095 for eligible workers earning up to two statutory monthly minimum wages, in places with public transport under the decree. Together with the minimum wage, that is COP 2,000,000 for a qualifying full month. Assess the actual travel and working arrangement, because it is not an automatic extra payment for every employee or a substitute for salary.
| 2026 component | Monthly amount | Who qualifies |
|---|---|---|
| Statutory minimum wage | COP 1,750,905 | Applicable ordinary minimum-wage employment |
| Transport allowance | COP 249,095 | Eligible workers under the transport rules |
| Minimum wage plus transport | COP 2,000,000 | A qualifying full month with both components |
The wage amount is fixed provisionally under the February 2026 decree, so check the actual payroll period and any change in the court proceedings.
What taxes and social contributions apply in Colombia?
Six separate contributions make up the employer cost, and three of them disappear entirely for a qualifying employer, which is why two identical salaries can carry quite different bills.
Follow a COP 5,000,000 salary example
This example assumes ordinary employment, a COP 5,000,000 monthly salary and contribution base, and a 0.522% work-risk rate.
| Illustrative monthly item | Employer amount |
|---|---|
| Gross salary | COP 5,000,000 |
| Pension at 12% | COP 600,000 |
| Family compensation at 4% | COP 200,000 |
| Assumed risk contribution at 0.522% | COP 26,100 |
| Subtotal with qualifying health, SENA and ICBF exemptions | COP 5,826,100 |
| Additional health, SENA and ICBF without those exemptions | COP 675,000 |
| Subtotal without those exemptions | COP 6,501,100 |
Both subtotals exclude annual statutory benefits, provider fees, agreed benefits, overtime and exit compensation. Use the employee's actual contribution bases and risk rate. Paid leave is part of employment, so avoid counting ordinary salary twice when making a leave budget.
Calculate take-home pay separately
Ordinary employee deductions include 4% for pension and 4% for health on the applicable base, plus any solidarity contribution and income-tax withholding. These are taken from gross pay, and employer contributions are additional employer costs. Confirm the employee's category, earnings, lawful deductions and personal tax position before giving a net-pay estimate.
The 2026 tax unit, UVT, is COP 52,374. The Article 383 employment-withholding table has marginal rates from 0% to 39%, with no withholding under that table up to 95 UVT of the relevant taxable monthly base, which is COP 4,975,530 in 2026. The base is not necessarily gross salary, because permitted deductions, exemptions, the chosen procedure and the employee's tax status all matter. Payroll withholding is distinct from the final annual income-tax calculation.
Confirm the right to work
The M worker visa is a current route for a foreign national employed by a Colombian legal entity, normally issued for up to three years and restricted to the authorised role, employer or activity. The application needs a contract summary, employer support and financial evidence, with professional permission where required. Confirm eligibility, registration and reporting before setting the start date, because an EOR service does not guarantee visa sponsorship.
The V digital-nomad route covers qualifying remote work for foreign businesses or the specified digital entrepreneurship activity. It can last up to two years and requires the prescribed nationality, income and insurance conditions, and it does not permit remunerated work for a person or entity domiciled in Colombia. A planned hire by a Colombian EOR therefore needs the appropriate local work permission, and the obsolete TP-4 and TP-7 labels should not guide a new application.
What pay and leave should your offer in Colombia cover?
Agree pay, working patterns, paid leave and benefits as part of the offer. These affect both your hiring budget and how you plan the employee’s work.
- Paid annual leave: 15 days
- Public holidays: 18 days
- The rest of the year: 332 days
The numbers behind this figure
| Entitlement | Days a year |
|---|---|
| Paid annual leave (statutory minimum) | 15 days |
| Public holidays (national) | 18 days |
| Total statutory paid days off | 33 days |
Source: National government, 2026. Statutory minimums. Eligibility, accrual and collective agreements can change what an individual employee receives.
How does payroll and compensation work in Colombia?
Colombian pay is twelve monthly salaries plus three separate annual obligations, and the wage floor itself is currently provisional.
Use the wage survey for context
OECD Taxing Wages 2026 reports an estimated 2025 average annual gross wage of COP 31,542,293 for Colombia, about COP 2,628,524 a month. It is based on DANE's household survey and covers full-time workers, defined in this measure as at least forty weekly hours in the main job. This is a national statistical benchmark rather than net pay or a current quote for a particular occupation, city or seniority.
| Statistical measure | 2025 value |
|---|---|
| OECD annual gross wage estimate from DANE | COP 31,542,293 |
| Annual figure divided by twelve | About COP 2,628,524 a month |
This measure uses a defined full-time worker population. It is not a current salary offer for a particular occupation or a take-home-pay figure.
Agree pay dates and annual benefits
Pay salaries in equal, completed periods no longer than one month, and daily wages have a maximum weekly payment interval. Agree the actual payroll dates in the contract. Overtime and night premiums are due with the relevant period's salary or, at the latest, the following period's salary. Keep salary, employee deductions, allowances and employer charges clear in the payroll records.
The prima de servicios is thirty days of salary per year, paid in two instalments: half by 30 June and half by 20 December, with proportionate entitlement for shorter service. It is separate from the twelve ordinary monthly salaries. An additional Christmas or performance bonus depends on applicable agreements and policies, so do not describe a universal fourteenth-month salary as a separate statutory requirement.
Under the ordinary annualised regime, cesantías accrue at one month of salary per year, proportionately for shorter service. Calculate the year's balance at 31 December and deposit it into the employee's chosen fund before 15 February of the following year, with remaining amounts at termination payable to the employee. Use the applicable salary and benefit base, and keep cesantías separate from compensation for dismissal without just cause.
The employer owes 12% annual interest on the relevant cesantías balance, proportionately for shorter periods. The ordinary year-end interest is paid during January of the following year, while termination and permitted partial withdrawals have their own timing. The interest is not a flat 12% of annual salary, so keep the interest calculation and payment separate from the fund deposit.
Assess integral salaries and extra benefits
An integral salary can combine ordinary pay with specified benefits and premiums, but does not include annual leave. It requires a written agreement and a statutory minimum of ten monthly minimum wages plus a benefits factor of at least 30%, equivalent to at least thirteen minimum wages in total, which for 2026 is COP 22,761,765. It remains subject to contributions, so check the applicable contribution base and the actual benefits factor before using this arrangement.
Budget for statutory contributions, prima, cesantías and interest, paid leave and applicable allowances before adding private health cover, meal support, extra leave or performance bonuses. Put extra benefits and their conditions in writing. The service fee is only one cost component, and a benefit described as optional may become binding through the contract, collective terms or workplace rules.
What benefits and leave are employees entitled to in Colombia?
Annual leave is fifteen working days and the holiday calendar adds eighteen days, several of which move to the following Monday.
Schedule paid annual leave
Ordinary employees earn fifteen consecutive working days of paid annual leave for each year of service. Public holidays and non-working rest days are not automatically counted as annual-leave days, so apply the employee's actual working schedule. Certain hazardous occupations have special entitlements, and better contractual or collective terms can add to the statutory minimum.
The employer should schedule leave within the following year and give at least fifteen days of advance notice. At least six consecutive working days must be taken annually and cannot be carried over, while other days can generally be carried over by agreement for up to two years, with specified four-year exceptions. On the employee's request, up to half the leave may be paid out by written agreement. Unused leave is settled proportionately at termination, and variable pay needs the statutory averaging calculation.
Plan holidays and medical absence
The Labour Code lists eighteen civil and religious holidays with paid rest, including New Year, Labour Day, Independence Day, Christmas and Easter-related observances, and several religious and commemorative holidays move to the following Monday under the holiday rules. Use the applicable year's observed dates when planning payroll and leave, and note that work on a holiday needs the current premium and any applicable rest treatment.
For certified non-work-related incapacity, the employer normally covers the first two days and the EPS covers the qualifying period from day three. The statutory rate is two thirds of the relevant pay base through day ninety, then one half through day 180, subject to the applicable minimum-pay protection, and the employer handles the claim process. Check coverage, contribution eligibility and medical certification, because longer incapacity and work-related illness have separate rules.
Apply current parental and family leave
Four entitlements carry most of the leave budget.
| Leave | Ordinary starting point |
|---|---|
| Annual leave | Fifteen working days per year |
| Maternity | Eighteen paid weeks, with specified extensions |
| Paternity | Two paid weeks under current rules |
| Qualifying bereavement | Five paid working days |
Maternity leave normally lasts eighteen weeks at the applicable salary rate, usually one week before birth and seventeen after, with medically required adjustments. Premature birth adds the relevant gestational difference, and multiple births or a child with a disability add two weeks. Adoption and specified cases where the father takes over care have corresponding rights. The employer should confirm EPS recognition, contribution history and the required documents.
The current ordinary paid paternity entitlement is two weeks for qualifying births and adoption. Submit the required birth or adoption evidence and have the employer check the EPS process and eligibility. The September 2026 proposal to increase leave progressively to twelve weeks has passed a first debate and is not the current entitlement, so do not apply a proposed expansion as if it were already law.
Eligible parents can distribute the last six weeks of maternity leave under the statutory shared-leave conditions, where the mother's first twelve weeks are protected and the father's own leave cannot be reduced through that arrangement. A separate flexible option exchanges part of the leave for part-time work over a longer period. Obtain the required employer agreement, medical support and documents, because neither arrangement is automatic extra full-pay leave.
During the child's first six months, the employer must provide two paid thirty-minute nursing breaks during the working day. After that, one paid thirty-minute break continues until age two where the statutory continuing-breastfeeding conditions are met, and a medical certificate can justify additional breaks. The employer also has duties concerning suitable facilities.
Employees have five paid working days of bereavement leave after the death of a spouse or permanent partner, or qualifying relatives. The covered family relationships include the second degree by blood, first by affinity and the protected civil relationships recognised by the court, and the required official evidence must be provided within thirty days. This entitlement is distinct from general serious domestic emergency leave.
The 2025 reform requires paid leave for specified events, including a proven serious domestic emergency, urgent medical appointments, qualifying specialist appointments, compulsory school attendance as a caregiver and official legal summonses, while other statutory duties include voting and qualifying union activities. A separate ten-working-day childcare leave applies in specified severe illness, serious accident or palliative-care cases. Check eligibility and evidence rather than imposing one annual unpaid-leave allowance.
Check the required evidence, EPS process and any better contractual terms. Shared or part-time parental leave needs the prescribed arrangements and is not an automatic extra block of full-pay leave.
What happens if you need to end employment in Colombia?
Discuss the proposed change with the EOR before giving notice or promising an exit payment. Ask it to confirm the procedure, timing and costs for the employee’s circumstances.
The numbers behind this figure
| Obligation | Weeks of salary |
|---|---|
| Statutory notice | 0 weeks |
| Statutory severance | 16.7 weeks |
| Total statutory exit cost | 16.7 weeks |
Colombia sits at number 49 of 190 countries for statutory exit cost in our Termination Cost Index.
What are the termination and compliance rules in Colombia?
Working time and premiums changed twice in the past year, and the dismissal rules changed with the 2025 reform, so this is the section where old guidance is most likely to be wrong.
Plan lawful hours and premiums
From 15 July 2026, the ordinary weekly maximum is forty-two hours, completing the phased reduction without reducing salary or benefits. The general daily maximum is eight hours, with specified flexible arrangements allowing four to nine daily hours within the weekly conditions. Agree a schedule over five or six days with a rest day, and assess special occupational rules or genuine working-time exceptions separately.
Since 25 December 2025, night work runs from 7 p.m. to 6 a.m., and ordinary night work attracts a 35% premium over the ordinary daytime rate, subject to statutory exceptions. Plan the actual Colombian working schedule before agreeing to cover another country's business hours, because the remote location does not remove night premiums.
Daytime overtime carries a 25% premium and night overtime a 75% premium over the ordinary daytime rate, and ordinary night and night-overtime premiums are not added together. The general overtime limit is two hours a day and twelve a week, with specified sector exceptions. The employer must keep the required overtime record and provide it with payment evidence when requested, and general prior ministry permission is no longer required.
From 1 July 2026, the phased premium for work on the mandatory rest day or a public holiday is 90%, reaching 100% from 1 July 2027, and an employer may adopt 100% earlier. The rest day is Sunday unless another day is agreed in writing. Compensatory rest and additional night or overtime treatment depend on the circumstances, so calculate the actual shift instead of applying one flat multiplier.
| Working-time item | Current ordinary rule |
|---|---|
| Weekly maximum | Forty-two hours from 15 July 2026 |
| Night period | 7 p.m. to 6 a.m. from 25 December 2025 |
| Ordinary night premium | 35% over the daytime rate |
| Daytime overtime premium | 25% over the ordinary daytime rate |
| Night overtime premium | 75% over the ordinary daytime rate |
| Mandatory rest-day or holiday premium | 90% from July 2026; 100% from July 2027 |
Check the actual shift and statutory exceptions, including compensatory rest. These rates are not all added together in every case.
Provide a safe and fair workplace
The employer must provide appropriate safety conditions and protective equipment, and the 2025 reform requires reasonable disability adjustments. Its permanent-workforce hiring rule is two workers with a disability per hundred workers up to five hundred, then one additional worker per further hundred, with reporting and specified exceptions. The first year was voluntary and the requirement becomes mandatory from the second year. Assess workforce counting, certification and applicable implementation with the employer.
The 2025 reform strengthens protection against workplace discrimination, violence and harassment, including conduct through work communications and by relevant clients or other third parties. Establish the required prevention and complaint processes, investigate concerns and respect protections linked to pregnancy, health, religion, political views and other protected characteristics. The client should cooperate with the employer where it controls the workplace or directs the work.
Protect employee information
Colombia's data-protection law generally requires prior informed authorisation unless a statutory exception applies. Explain the purpose, recipients and employee rights, limit access, keep records accurate and secure, and handle sensitive health or biometric information under the stricter rules. The EOR and client should document their respective roles, complaint handling, retention and security-incident responsibilities, because employment does not create an unrestricted right to use personal data.
International transfers to another controller must meet the adequate-protection requirement or a statutory exception, while processing by an overseas processor on the controller's behalf has a separate transmission route with a compliant processing contract. That contract must define scope, activities, obligations, security and confidentiality. Determine the EOR and client's real roles before sharing employee records abroad, because a generic consent form does not resolve every requirement.
Check the exit before giving notice
A dismissal for just cause needs a recognised ground and the relevant procedure. Poor performance requires the applicable warning and opportunity to improve, and misconduct must be supported by evidence and valid rules. Dismissal without just cause normally requires statutory compensation, but paying compensation does not override protected status, prohibited discrimination or a required authorisation. Ask the employing entity to review the specific case before communicating an exit.
There is no general thirty or sixty-day employer notice rule based only on service. A fixed-term non-renewal normally needs at least thirty days of notice before expiry under the renewal rules, and specified just-cause grounds in Labour Code Article 62 require at least fifteen days of notice. Other exits need their own legal assessment, including compensation, procedure, collective terms and employee protection.
The 2025 reform provides thirty calendar days of notice for an employee ending an indefinite contract, so the employer can arrange a replacement, and the employer cannot agree a penalty for failure to give that notice. Different treatment applies when the employee ends the contract because of a qualifying serious employer breach. Record the reason, date and final payments instead of deducting an automatic notice penalty.
Pregnancy and maternity protections, qualifying union protection and health or disability circumstances can restrict dismissal and require additional procedures. Protected union representatives generally need a labour judge's prior assessment of just cause, and maternity protection has its own labour-authority process. Check the actual protection and current court rules, because a fixed-term expiry, probation clause or compensation payment does not automatically bypass them.
Collective dismissals and qualifying closures require prior Ministry of Labour authorisation and simultaneous written communication to employees, with thresholds depending on workforce size and dismissals within six months. Review the whole employing entity's situation and required evidence before carrying out a group exit, because separate individual notices do not remove the collective rules.
| Exit route | What to confirm |
|---|---|
| Fixed-term non-renewal | Thirty-day notice, valid term, renewal limit and protected status |
| Just-cause dismissal | Recognised ground, evidence and the required process and notice |
| Dismissal without just cause | Applicable compensation and any protection or authorisation requirement |
| Collective dismissal | Workforce thresholds, prior ministry authorisation and employee communication |
| Employee resignation | Applicable notice and reason, with no automatic penalty under the indefinite-contract rule |
Calculate compensation and final payments
The compensation formula turns on whether the employee earns ten monthly minimum wages or more.
| Indefinite employment | Service up to one year | Each subsequent year |
|---|---|---|
| Pay below ten monthly minimum wages | Thirty days of salary | Twenty days, proportionately for fractions |
| Pay at least ten monthly minimum wages | Twenty days of salary | Fifteen days, proportionately for fractions |
Historical transition rules and the employee's circumstances can change the assessment. These figures concern compensation for dismissal without just cause, and accrued wages, leave and statutory benefits are separate.
Ending a fixed term without just cause normally requires compensation equal to salary for the remaining term, while a defined-task contract uses the relevant remaining work period with a statutory minimum of fifteen days under the compensation provision. At normal expiry, check the written terms, non-renewal notice, four-year limit and protected status before treating the relationship as ended, because accrued benefits still need settlement.
At termination, calculate outstanding wages, premiums, unused leave, proportionate prima, cesantías and interest, plus any dismissal compensation, and arrange the required employment certificate and contribution records. Late payment can create additional liability, subject to the legal and court assessment. Do not assume a universal fifteen-day grace period for final settlement or that cesantías replace dismissal compensation.
How we maintain the guide
We check selected sources monthly and review relevant changes before updating the guide, and facts show their source, review date and applicable period. The July 2026 hours and holiday-premium rules, the provisional 2026 wage decree, proposed parental-leave changes and the 2025 salary benchmark have different legal or statistical dates. A successful fetch does not verify a law, and unresolved source changes require further review.
These are stored source rules, not a case-specific termination calculation. Confirm the applicable procedure and current requirements before acting.
Choose an EOR for your hire in Colombia
Compare the employing entity, itemised costs, local support, payroll deadlines and what happens if you change or end the arrangement.
Questions about hiring in Colombia
How does an employer of record work in Colombia?
An employer of record provides employment and payroll services through a local employer. In Colombia, ask how the proposed arrangement complies with employment and outsourcing rules. A temporary services company must be authorised and may supply staff only for permitted temporary needs. The EOR label does not create permission to supply permanent staff outside those rules. Confirm the employing entity, who directs the work and the legal basis for the role.
How quickly can an EOR hire start in Colombia?
Agree the start date after the provider confirms the lawful hiring model, employee documents, written contract, payroll and contribution arrangements, and any work permission. Ask for the remaining steps and expected completion dates. A general onboarding estimate does not establish that your particular hire is ready.
Does the EOR fee include every employment cost?
Ask for separate amounts for gross salary, employer contributions, statutory benefits, allowances, service fees, deposits and possible exit costs. The example in this guide shows contributions under stated assumptions and excludes annual benefits and fees. Compare the actual employer's written calculation for your hire.
What should I check before signing with a provider?
Confirm the employing entity, lawful arrangement, work location, who directs the role, contract type, hours, payroll calculations, exemptions, leave, immigration, employee support, data handling and ownership of work. Agree how complaints, termination and a future move to your own entity would be handled.
Check the facts behind this guide
Each reviewed fact links to its source and shows its validation date and effective period. Monthly review does not mean that every rule changes monthly. Statistical benchmarks retain their original data periods.
View sourced facts and review dates
| Fact | Value | Source | Effective / data period | Last validated |
|---|---|---|---|---|
| Check the lawful employment arrangement | An employer of record provides employment and payroll services through a local employer. In Colombia, ask how the proposed arrangement complies with employment and outsourcing rules. A temporary services company must be authorised and may supply staff only for permitted temporary needs. The EOR label does not create permission to supply permanent staff outside those rules. Confirm the employing entity, who directs the work and the legal basis for the role. | Función Pública: Law 2466 of 25 June 2025, labour reform | ||
| Outsourcing can leave the client jointly liable | For work within the client’s normal business activities, the client can be jointly liable with a contractor for workers’ wages, benefits and compensation. Genuine contractors operate with their own means, risk and technical or managerial autonomy. Temporary staffing has separate limits: replacement needs and qualifying temporary work are permitted; a production or service increase is normally limited to six months plus one extension of up to six months. Changing agencies does not reset an ongoing need. | Función Pública: Law 2466 of 25 June 2025, labour reform | ||
| Compare employment services with direct hiring | If your Colombian entity employs the person, you can buy payroll or HR support while retaining employer duties. A PEO or EOR service name does not settle who is legally responsible. Compare the permitted arrangement, employer support, payroll accuracy, fees, deposits, exit costs and the process for moving employment to your own entity. Have the provider explain any client liability in the actual arrangement. | Función Pública: Law 2466 of 25 June 2025, labour reform | ||
| The working relationship decides employment status | Personal work, continued subordination and pay are the main elements of employment. When those elements exist, the name of the agreement does not remove employment rights. Assess who controls the work, working arrangements and the person’s independence before engaging a contractor. A services invoice, foreign client or remote workplace does not by itself prevent employment classification. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Put the agreed terms in writing before the start | A written employment contract should identify the parties, role, work location, salary, payment schedule, duration and termination terms, with a copy for each party. Record working hours, remote arrangements, benefits and applicable policies as well. Fixed-term and defined-task contracts require writing under the 2025 reform. Use terms the employee can understand and arrange an appropriate Spanish version for local administration and disputes. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Fixed terms now have a four-year limit | Indefinite employment is the standard hiring form under the 2025 reform. Fixed-term contracts must be written and cannot run beyond four years through renewals. For contracts already in force when the reform began, the four-year count starts from 25 June 2025. Renewal rules differ for agreed and automatic extensions of terms below a year. A defined-task contract must describe the work precisely; missing conditions or continued work can create indefinite employment. | Función Pública: Law 2466 of 25 June 2025, labour reform | Colombia: ordinary private employment. Reviewed 14 September 2026. Apply relevant collective terms, special regimes and individual protections. | |
| Agree probation in writing within the statutory limit | Probation must be written and cannot exceed two months. For a fixed term shorter than one year, it is also limited to one fifth of the initial term. Successive contracts with the same employer cannot repeat probation after the first contract. Employees retain statutory benefits during probation. The ability to end probation without notice does not remove protection against unlawful discrimination or protected-status dismissal. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Use the updated disciplinary procedure | The 2025 reform requires a fair process for disciplinary sanctions: written allegations, access to the evidence, at least five days to respond, a reasoned decision, proportionality and an opportunity to challenge it. Qualifying union representation and disability adjustments also apply. Employers had twelve months to update their work rules. Domestic employers and qualifying micro or small businesses with fewer than ten workers have a narrower procedure but must still hear the employee and respect defence rights. | Función Pública: Law 2466 of 25 June 2025, labour reform | Colombia: ordinary private employment. Reviewed 14 September 2026. Apply relevant collective terms, special regimes and individual protections. | |
| Do not rely on a post-employment non-compete | The Labour Code makes a promise not to work in an activity or for a competitor after employment ineffective. Do not treat the historical, struck-down exception for certain technical workers as current permission. Use appropriate confidentiality protections during and after employment, and get advice on protecting trade secrets without restricting the employee’s right to work. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Document the rights that must reach the client | The author starts with copyright and moral rights. For work created under a written employment or services contract, economic rights are presumed transferred to the employer or commissioner to the extent needed for its usual activities, unless agreed otherwise. With an EOR, confirm the rights that the employer receives and the written transfer or licence to your business. Moral rights and inventions need their own treatment; do not assume every right passes automatically to the client. | National Copyright Directorate, commissioned work and employment copyright | ||
| The 2026 monthly wage floor is COP 1,750,905 | The 2026 statutory monthly minimum is COP 1,750,905. Decree 159 of 19 February 2026 fixes this amount provisionally after the earlier wage decree was suspended, with its duration tied to the court proceedings. Eligible transport support is separate. Confirm the rate and legal position for the payroll period, together with any higher binding wage terms; the combined wage and transport amount is not the wage floor for every employee. | Ministry of Foreign Affairs legislation database, Decree 159 of 19 February 2026 | 2026 minimum wage; same amount applied from January. Decree 159 effective on publication in February 2026, provisionally pending the specified court proceedings. Checked 14 September 2026. | |
| Eligible employees receive separate transport support | The 2026 monthly transport allowance is COP 249,095 for eligible workers earning up to two statutory monthly minimum wages, in places with public transport under the decree. Together with the minimum wage, that is COP 2,000,000 for a qualifying full month. Assess the actual travel and working arrangement; it is not an automatic extra payment for every employee or a substitute for salary. | Ministry of Foreign Affairs legislation database, Decree 1470 of 2025 | 2026 transport allowance effective 1 January 2026; eligibility and payroll period must be checked. | |
| Use the 2025 OECD benchmark as context | OECD Taxing Wages 2026 reports an estimated 2025 average annual gross wage of COP 31,542,293 for Colombia, about COP 2,628,524 a month. It is based on DANE’s household survey and covers full-time workers, defined in this measure as at least forty weekly hours in the main job. This is a national statistical benchmark, not net pay or a current quote for a particular occupation, city or seniority. | OECD: Taxing Wages 2026, Colombia country estimate for 2025 from DANE household survey | OECD Taxing Wages 2026 publication; 2025 Colombian country estimate from DANE GEIH, annual gross earnings of the defined full-time worker population. Not 2026 salary data. | |
| Salary payment intervals cannot exceed a month | Pay salaries in equal, completed periods no longer than one month; daily wages have a maximum weekly payment interval. Agree the actual payroll dates in the contract. Overtime and night premiums are due with the relevant period’s salary or, at the latest, the following period’s salary. Keep salary, employee deductions, allowances and employer charges clear in the payroll records. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| An integral salary needs a valid written agreement | An integral salary can combine ordinary pay with specified benefits and premiums, but does not include annual leave. It requires a written agreement and a statutory minimum of ten monthly minimum wages plus a benefits factor of at least 30%, equivalent to at least thirteen minimum wages in total. For 2026 that minimum total is COP 22,761,765. It remains subject to contributions; check the applicable contribution base and the actual benefits factor before using this arrangement. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Ordinary pension contributions are 12% plus 4% | Ordinary pension contributions total 16% of the applicable contribution base: 12% paid by the employer and 4% withheld from the employee. Higher-paid employees may also owe solidarity-fund contributions. Colpensiones’ statement updated in September 2026 describes the general pension system under Law 100 as the operative framework while the 2024 reform remains suspended. Check the employee’s regime and any special rules before filing payroll. | OECD: Taxing Wages 2026, Colombia country estimate for 2025 from DANE household survey | ||
| Separate employer and employee health contributions | The ordinary health contribution is 12.5% of the contribution base, split between 8.5% for the employer and 4% for the employee. Qualifying employers can be exempt from their 8.5% share for employees earning below ten monthly minimum wages. That exemption does not remove the employee’s 4% contribution or the employer’s duty to arrange coverage and report correctly. | DIAN, interpretation of employer contribution exemptions under Tax Code Article 114-1 | ||
| Add family compensation, SENA and ICBF where due | Ordinary employer payroll charges include 4% for the family compensation fund, 2% for SENA and 3% for ICBF on the relevant payroll base. The Article 114-1 exemption can remove SENA and ICBF charges for qualifying employers and employees, but does not remove the family compensation contribution. Confirm the actual employer’s eligibility and the base used for each payment. | Función Pública: Law 21 of 1982, family compensation and SENA contributions | ||
| The payroll exemption depends on the employer and employee | Qualifying corporate income-tax declarants can be exempt from employer health, SENA and ICBF contributions for employees who individually earn less than ten monthly minimum wages. Exactly ten minimum wages does not meet that earnings test. Different conditions apply to individuals, special tax-regime entities and other employer types. Ask the EOR to document its eligibility instead of applying one reduced rate to every provider or hire. | DIAN, interpretation of employer contribution exemptions under Tax Code Article 114-1 | ||
| Work-risk insurance is an employer cost | The employer pays occupational-risk insurance at the rate assigned to the activity and risk classification. The statutory rate range described by the OECD is 0.348% to 8.7%; its wage model uses 0.522% as a representative rate. Use the actual assigned rate for the employee’s work. The 0.522% figure in the cost example is an assumption, not a universal rate for Colombian employment. | OECD: Taxing Wages 2026, Colombia country estimate for 2025 from DANE household survey | ||
| Calculate contributions on the correct base | Ordinary health and pension contributions use a statutory base, generally bounded by one and twenty-five monthly minimum wages. At the 2026 wage floor, those reference amounts are COP 1,750,905 and COP 43,772,625. Special arrangements and payroll events can affect the calculation. UGPP checks omitted registrations, an understated contribution base and late monthly payments; a contribution rate alone does not establish the correct bill. | UGPP, employer contribution and reporting definitions | ||
| Employee deductions are separate from employer costs | Ordinary employee deductions include 4% for pension and 4% for health on the applicable base, plus any solidarity contribution and income-tax withholding. These are taken from gross pay; employer contributions are additional employer costs. Confirm the employee’s category, earnings, lawful deductions and personal tax position before giving a net-pay estimate. | OECD: Taxing Wages 2026, Colombia country estimate for 2025 from DANE household survey | ||
| Use the 2026 tax unit and the correct withholding base | The 2026 tax unit, UVT, is COP 52,374. The Article 383 employment-withholding table has marginal rates from 0% to 39%, with no withholding under that table up to 95 UVT of the relevant taxable monthly base. That is COP 4,975,530 in 2026. The base is not necessarily gross salary: permitted deductions, exemptions, the chosen procedure and the employee’s tax status matter. Payroll withholding is distinct from the final annual income-tax calculation. | DIAN, Tax Code Article 383 employment withholding table | ||
| A COP 5,000,000 hire costs more than the salary | Assume a COP 5,000,000 monthly salary and contribution base, ordinary employment and a 0.522% work-risk rate. Employer pension is COP 600,000, family compensation COP 200,000 and work-risk insurance COP 26,100. The subtotal is COP 5,826,100 if employer health, SENA and ICBF exemptions apply, or COP 6,501,100 if they do not. Add prima, cesantías, interest, leave-related liabilities, fees and agreed benefits. This example excludes overtime, bonuses and exit compensation. | DIAN, interpretation of employer contribution exemptions under Tax Code Article 114-1 | ||
| The statutory service bonus totals thirty days a year | The prima de servicios is thirty days of salary per year, paid in two instalments: half by 30 June and half by 20 December, with proportionate entitlement for shorter service. It is separate from the twelve ordinary monthly salaries. An additional Christmas or performance bonus depends on applicable agreements and policies; do not describe a universal fourteenth-month salary as a separate statutory requirement. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Budget separately for the annual cesantías benefit | Under the ordinary annualised regime, cesantías accrue at one month of salary per year, proportionately for shorter service. Calculate the year’s balance at 31 December and deposit it into the employee’s chosen fund before 15 February of the following year. Remaining amounts at termination are payable to the employee. Use the applicable salary and benefit base; cesantías are separate from compensation for dismissal without just cause. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Pay interest on cesantías to the employee | The employer owes 12% annual interest on the relevant cesantías balance, proportionately for shorter periods. The ordinary year-end interest is paid during January of the following year; termination and permitted partial withdrawals have their own timing. The interest is not a flat 12% of annual salary. Keep the interest calculation and payment separate from the fund deposit. | Función Pública: Decree 116 of 1976, interest on cesantías | ||
| The ordinary weekly limit is now forty-two hours | From 15 July 2026, the ordinary weekly maximum is forty-two hours, completing the phased reduction without reducing salary or benefits. The general daily maximum is eight hours, with specified flexible arrangements allowing four to nine daily hours within the weekly conditions. Agree a schedule over five or six days with a rest day, and assess special occupational rules or genuine working-time exceptions separately. | Función Pública: Law 2466 of 25 June 2025, labour reform | Ordinary private-sector weekly limit of 42 hours from 15 July 2026 under Law 2101, read with Law 2466 of 2025. Special arrangements require assessment. | |
| Night work begins at seven in the evening | Since 25 December 2025, night work runs from 7 p.m. to 6 a.m. Ordinary night work attracts a 35% premium over the ordinary daytime rate, subject to statutory exceptions. Plan the actual Colombian working schedule before agreeing to cover another country’s business hours; the remote location does not remove night premiums. | Función Pública: Law 2466 of 25 June 2025, labour reform | Colombia: ordinary private employment. Reviewed 14 September 2026. Apply relevant collective terms, special regimes and individual protections. | |
| Apply the right overtime rate and record the hours | Daytime overtime carries a 25% premium and night overtime a 75% premium over the ordinary daytime rate. Ordinary night and night-overtime premiums are not added together. The general overtime limit is two hours a day and twelve a week, with specified sector exceptions. The employer must keep the required overtime record and provide it with payment evidence when requested; general prior ministry permission is no longer required. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| The minimum rest-day and holiday premium is now 90% | From 1 July 2026, the phased premium for work on the mandatory rest day or a public holiday is 90% over the ordinary rate; it reaches 100% from 1 July 2027, and an employer may adopt 100% earlier. The rest day is Sunday unless another day is agreed in writing. Compensatory rest and additional night or overtime treatment depend on the circumstances, so calculate the actual shift instead of applying one flat multiplier. | Función Pública: Law 2466 of 25 June 2025, labour reform | 90% phased premium from 1 July 2026; 100% required from 1 July 2027 unless implemented earlier. Ordinary private employment and relevant exceptions. | |
| Record remote work, equipment and disconnection | Agree the remote-work form, location, hours, equipment, expenses, safety arrangements and employee support. The 2025 reform recognises several telework forms, including hybrid and transnational work. Employers must maintain a policy supporting the right to disconnect, with a complaint process and applicable exceptions. Working from home does not remove statutory pay, leave, contribution or safety obligations. | Función Pública: Law 2466 of 25 June 2025, labour reform | ||
| Eligible teleworkers receive connectivity support | The 2025 telework amendment requires a connectivity allowance in place of transport support for teleworkers earning less than two monthly minimum wages. It equals the current transport allowance, COP 249,095 in 2026. The employee receives one of the two allowances, not both. The connectivity payment is not salary but is included in the statutory-benefit base under the stated conditions. Check the exact earnings threshold and applicable remote-work regime. | Función Pública: Law 2466 of 25 June 2025, labour reform | ||
| Annual leave starts at fifteen working days | Ordinary employees earn fifteen consecutive working days of paid annual leave for each year of service. Public holidays and non-working rest days are not automatically counted as annual-leave days; apply the employee’s actual working schedule. Certain hazardous occupations have special entitlements. Better contractual or collective terms can add to the statutory minimum. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Schedule and settle annual leave correctly | The employer should schedule leave within the following year and give at least fifteen days’ advance notice. At least six consecutive working days must be taken annually and cannot be carried over. Other days can generally be carried over by agreement for up to two years, with specified four-year exceptions. On the employee’s request, up to half the leave may be paid out by written agreement. Unused leave is settled proportionately at termination; variable pay needs the statutory averaging calculation. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Plan around eighteen statutory holidays | The Labour Code lists eighteen civil and religious holidays with paid rest, including New Year, Labour Day, Independence Day, Christmas and Easter-related observances. Several religious and commemorative holidays move to the following Monday under the holiday rules. Use the applicable year’s observed dates when planning payroll and leave. Work on a holiday needs the current premium and any applicable rest treatment. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Certified sickness has a separate pay system | For certified non-work-related incapacity, the employer normally covers the first two days and the EPS covers the qualifying period from day three. The statutory rate is two thirds of the relevant pay base through day ninety, then one half through day 180, subject to the applicable minimum-pay protection. The employer handles the claim process. Check coverage, contribution eligibility and medical certification; longer incapacity and work-related illness have separate rules. | Ministry of Justice, payment during certified incapacity | ||
| Maternity leave is normally eighteen paid weeks | Maternity leave normally lasts eighteen weeks at the applicable salary rate. The usual pattern is one week before birth and seventeen after, with medically required adjustments. Premature birth adds the relevant gestational difference, and multiple births or a child with a disability add two weeks. Adoption and specified cases where the father takes over care have corresponding rights. The employer should confirm EPS recognition, contribution history and the required documents. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Current paternity leave remains two weeks | The current ordinary paid paternity entitlement is two weeks for qualifying births and adoption. Submit the required birth or adoption evidence and have the employer check the EPS process and eligibility. The September 2026 proposal to increase leave progressively to twelve weeks has passed a first debate; it is not the current entitlement. Do not apply a proposed expansion as if it were already law. | Ministry of Justice, parental leave guidance, 25 August 2026 | ||
| Shared and part-time parental leave need the prescribed agreement | Eligible parents can distribute the last six weeks of maternity leave under the statutory shared-leave conditions; the mother’s first twelve weeks are protected and the father’s own leave cannot be reduced through that arrangement. A separate flexible option exchanges part of the leave for part-time work over a longer period. Obtain the required employer agreement, medical support and documents; neither arrangement is automatic extra full-pay leave. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Paid nursing breaks can continue until age two | During the child’s first six months, the employer must provide two paid thirty-minute nursing breaks during the working day. After that, one paid thirty-minute break continues until age two where the statutory continuing-breastfeeding conditions are met. A medical certificate can justify additional breaks. The employer also has duties concerning suitable facilities. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Qualifying bereavement gives five paid working days | Employees have five paid working days of bereavement leave after the death of a spouse or permanent partner, or qualifying relatives. The covered family relationships include the second degree by blood, first by affinity and the protected civil relationships recognised by the court. Provide the required official evidence within thirty days. This entitlement is distinct from general serious domestic emergency leave. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Provide the required emergency and appointment leave | The 2025 reform requires paid leave for specified events, including a proven serious domestic emergency, urgent medical appointments, qualifying specialist appointments, compulsory school attendance as a caregiver and official legal summonses. Other statutory duties include voting and qualifying union activities. A separate ten-working-day childcare leave applies in specified severe illness, serious accident or palliative-care cases. Check eligibility and evidence rather than imposing one annual unpaid-leave allowance. | Función Pública: Law 2466 of 25 June 2025, labour reform | ||
| Separate statutory benefits from the offer you negotiate | Budget for statutory contributions, prima, cesantías and interest, paid leave and applicable allowances before adding private health cover, meal support, extra leave or performance bonuses. Put extra benefits and their conditions in writing. The service fee is only one cost component, and a benefit described as optional may become binding through the contract, collective terms or workplace rules. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Assess the reason, evidence and protections before dismissal | A dismissal for just cause needs a recognised ground and the relevant procedure. Poor performance requires the applicable warning and opportunity to improve; misconduct must be supported by evidence and valid rules. Dismissal without just cause normally requires statutory compensation, but paying compensation does not override protected status, prohibited discrimination or a required authorisation. Ask the employing entity to review the specific case before communicating an exit. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Employer notice depends on the termination route | There is no general thirty- or sixty-day employer notice rule based only on service. A fixed-term non-renewal normally needs at least thirty days’ notice before expiry under the renewal rules. Specified just-cause grounds in Labour Code Article 62 require at least fifteen days’ notice. Other exits need their own legal assessment, including compensation, procedure, collective terms and employee protection. | Función Pública: Law 2466 of 25 June 2025, labour reform | ||
| Ordinary indefinite-contract resignation has a thirty-day notice rule | The 2025 reform provides thirty calendar days’ notice for an employee ending an indefinite contract, so the employer can arrange a replacement. The employer cannot agree a penalty for failure to give that notice. Different treatment applies when the employee ends the contract because of a qualifying serious employer breach. Record the reason, date and final payments instead of deducting an automatic notice penalty. | Función Pública: Law 2466 of 25 June 2025, labour reform | Colombia: ordinary private employment. Reviewed 14 September 2026. Apply relevant collective terms, special regimes and individual protections. | |
| Without-cause compensation depends on salary and service | For an indefinite contract and pay below ten monthly minimum wages, compensation is thirty days’ salary for service up to one year, plus twenty days for each subsequent year and proportionately for a fraction. At ten minimum wages or more, the corresponding amounts are twenty days for the first year and fifteen for each later year. Historical transition rules can apply to longstanding employment. This compensation is separate from accrued wages and statutory benefits. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Early fixed-term termination can require the remaining wages | Ending a fixed term without just cause normally requires compensation equal to salary for the remaining term. For a defined-task contract, the relevant remaining work period is used, with a statutory minimum of fifteen days under the compensation provision. At normal expiry, check the written terms, non-renewal notice, four-year limit and protected status before treating the relationship as ended. Accrued benefits still need settlement. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Some exits need prior authorisation or court review | Pregnancy and maternity protections, qualifying union protection and health or disability circumstances can restrict dismissal and require additional procedures. Protected union representatives generally need a labour judge’s prior assessment of just cause; maternity protection has its own labour-authority process. Check the actual protection and current court rules. A fixed-term expiry, probation clause or compensation payment does not automatically bypass them. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Collective dismissals need a separate authorisation process | Collective dismissals and qualifying closures require prior Ministry of Labour authorisation and simultaneous written communication to employees. The collective-dismissal thresholds depend on workforce size and dismissals within six months. Review the whole employing entity’s situation and required evidence before carrying out a group exit; separate individual notices do not remove the collective rules. | Función Pública, Law 50 of 1990 and recorded amendments | ||
| Settle the amounts due when employment ends | At termination, calculate outstanding wages, premiums, unused leave, proportionate prima, cesantías and interest, plus any dismissal compensation. Arrange the required employment certificate and contribution records. Late payment can create additional liability, subject to the legal and court assessment. Do not assume a universal fifteen-day grace period for final settlement or that cesantías replace dismissal compensation. | Función Pública: Substantive Labour Code, read alongside subsequent amendments | ||
| Protect employee records and document the legal basis | Colombia’s data-protection law generally requires prior informed authorisation unless a statutory exception applies. Explain the purpose, recipients and employee rights; limit access, keep records accurate and secure, and handle sensitive health or biometric information under the stricter rules. The EOR and client should document their respective roles, complaint handling, retention and security-incident responsibilities. Employment does not create an unrestricted right to use personal data. | Función Pública, Personal Data Protection Law 1581 of 2012 | ||
| Check whether the overseas recipient is a controller or processor | International transfers to another controller must meet the adequate-protection requirement or a statutory exception. Processing by an overseas processor on the controller’s behalf has a separate transmission route with a compliant processing contract. That contract must define scope, activities, obligations, security and confidentiality. Determine the EOR and client’s real roles before sharing employee records abroad; a generic consent form does not resolve every requirement. | Función Pública: Decree 1377 of 2013, international data transfers and processing | ||
| Use the current work-permission route for the actual employer | The M worker visa is a current route for a foreign national employed by a Colombian legal entity, normally issued for up to three years and restricted to the authorised role, employer or activity. The application needs a contract summary, employer support and financial evidence, with professional permission where required. Confirm eligibility, registration and reporting before setting the start date. An EOR service does not guarantee visa sponsorship. | Ministry of Foreign Affairs, M worker visa | ||
| A digital-nomad visa does not authorise ordinary local employment | The V digital-nomad route covers qualifying remote work for foreign businesses or the specified digital entrepreneurship activity. It can last up to two years and requires the prescribed nationality, income and insurance conditions. It does not permit remunerated work for a person or entity domiciled in Colombia. A planned hire by a Colombian EOR therefore needs the appropriate local work permission; the obsolete TP-4 and TP-7 labels should not guide a new application. | Ministry of Foreign Affairs, visa categories and requirements | ||
| Provide accessibility, safe work and required disability hiring | The employer must provide appropriate safety conditions and protective equipment, and the 2025 reform requires reasonable disability adjustments. Its permanent-workforce hiring rule is two workers with a disability per hundred workers up to five hundred, then one additional worker per further hundred, with reporting and specified exceptions. The first year was voluntary; the requirement becomes mandatory from the second year. Assess workforce counting, certification and applicable implementation with the employer. | Función Pública: Law 2466 of 25 June 2025, labour reform | ||
| Act on discrimination, violence and harassment | The 2025 reform strengthens protection against workplace discrimination, violence and harassment, including conduct through work communications and by relevant clients or other third parties. Establish the required prevention and complaint processes, investigate concerns and respect protections linked to pregnancy, health, religion, political views and other protected characteristics. The client should cooperate with the employer where it controls the workplace or directs the work. | Función Pública: Law 2466 of 25 June 2025, labour reform | ||
| Monthly checks support reviewed updates | We check selected sources monthly and review relevant changes before updating the guide. Facts show their source, review date and applicable period. The July 2026 hours and holiday-premium rules, the provisional 2026 wage decree, proposed parental-leave changes and the 2025 salary benchmark have different legal or statistical dates. A successful fetch does not verify a law, and unresolved source changes require further review. | Función Pública: Law 2466 of 25 June 2025, labour reform | ||
| Apprenticeship is a special employment arrangement | The 2025 reform treats apprenticeship as a special fixed-term employment contract of up to three years. Traditional training has minimum support of 75% of the monthly minimum wage during the teaching phase and 100% during the practical phase. Dual training has separate first- and second-year rules. The practical phase and dual training include the prescribed employment benefits and insurance. Use the correct scheme and assess any SENA quota rather than treating an ordinary hire as an apprentice. | Función Pública: Law 2466 of 25 June 2025, labour reform | Colombia: ordinary private employment. Reviewed 14 September 2026. Apply relevant collective terms, special regimes and individual protections. |