Employment contracts in Colombia can be indefinite or fixed-term. Indefinite contracts have an undefined duration but a defined scope of work. Fixed-term contracts have a set duration of up to three years. Contracts between one to three years in length can be renewed indefinitely but cannot become an indefinite contract. Fixed-term contracts also cover an assigned task where the duration is not defined but ends when the task is complete and for occasional work where the duration is less than a month.

The monthly minimum wage in Colombia is COP 1,300,000.

Common Benefits

• Private health care insurance

• Additional vacation days

• Internet allowance – approx. 80 USD per month

• Mobile phone allowance – approx. 100 USD per month

• Meal vouchers/allowance – 20 USD per day (per CBA)

• Fitness/Wellness allowance – between 400 -450 USD Per Year

By law in Colombia, the maximum number of working hours is 8-10 hours per day and 47 hours per week (effective July 2023)

Worker’s non-working time must be respected and employers should not contact them after working hours.

With effect from summer 2023, the work week will gradually be reduced. Colombians will work one less hour per week each year, which will not negatively affect their salary, benefits, or the value of the daily working hour. The initial objective of the measure is to reduce the workday to 42 working hours per week by the year 2026. It will start with one less hour in the first two years (2023 and 2024) and two less hours in the following years (2025 and 2026).

Overtime

All work above the standard weekly working hours is paid as overtime and regulated by the employment contract/collective agreements.

An employee who has to work between 22:00 and 06:00, must be paid 35.00% more than the equivalent daytime salary.

Exemptions for the receipt of overtime include employees who earn more than 10x the minimum wage or employees in trust positions.

For the remaining employees, the payment of overtime is generally based on the following:

Daytime overtime is paid at 125.00% of the regular pay rate, increasing to 175.00% of the standard pay rate for night-time overtime hours.

Sunday/extra daytime/holiday overtime work is paid at 175.00% of the regular pay for holidays and night-time work and 125.00% for overtime work during the daytime.

Remote Work

Work From Home

Employers are required to respond within 5 days to employees’ written working from home requests. Employees may carry out their work overseas if permission is given by their employer. Teleworkers’ employment agreements must include a description and any restrictions and responsibilities regarding equipment and software, the mode of teleworking, the required working hours, the location of teleworking, reimbursement of expenses, ergonomics and technology, among others.

It is possible for the employer and the teleworkers to expressly agree in the employment contracts or amendments on the reversibility of teleworking at any moment.

Employers are required to reimburse employees for teleworking-related expenses which are not normally incurred by employees. Employers and employees may agree a monthly allowance to compensate internet, telephone, and energy costs.

Employers should perform medical examinations for their remote employees when they are hired and on a periodic basis. Remote workers who are caring for minors under age 14, individuals with disabilities or adults over age 60 are allowed to organize their work schedule around their caregiver duty.

All workers have the right to disconnect and avoid any work-related contact outside their working hours and statutory or contractual leaves.

Remote Work

Remote work can be agreed upon voluntarily by the employer and employee, whereby an employee may conduct their services from any place within the country. The entire labor relationship, from its beginning to its termination, may be conducted without any face-to-face meetings at a designated workplace.

All workers have the right to disconnect and avoid any work-related contact outside their working hours and statutory or contractual leaves.

All employees are entitled to paid sick leave by their employer for the first two days of leave, at a rate of 100% of their regular pay rate.

Medical authorization from a Colombian social security entity must be obtained for the employee to be paid for their sick leave.

From the third day onwards, all payments are assumed by the social security system at a rate of 66.67%. Still, the law requires that the employer pays from day three until day 180, with reimbursement from the social security system. These same rules also apply to disability leave.

Maternity Leave

Employees are entitled to 18 weeks of paid maternity leave at 100.00% of the regular salary rate of pay. The employer pays this and is then fully reimbursed by social security.

Paternity Leave

Employees are entitled to two weeks of paid paternity leave of 100.00% of the regular salary rate of pay. The employer pays this and is then fully reimbursed by social security (EPS).

Parental Leave

There is no additional parental leave in Colombia.

Paid leave in Colombia is outlined in the employment contract as a minimum of 15 days paid leave a year, following completion of 1-year service. This is in addition to any public holidays.

Bereavement Leave: In the event of the death of an immediate family member, an employee is entitled to up to five days’ leave in Colombia.

Marriage Leave: Employees are also entitled to five days’ leave in the event of their marriage.

In Colombia, there are a number of public holidays that the law established that if they do not fall on a Monday they will be moved to the following Monday.

Date Day Holiday

1 Jan 2024 - Sunday - New Year’s Day
8 Jan 2024 - Monday - Three Kings Day
25 Mar 2024 - Monday - St. Joseph’s Day
28 Mar 2024 - Thursday - Holy Thursday
29 Mar 2024 - Friday - Good Friday
1 May 2024 - Wednesday - Labor Day
13 May 2024 - Monday - Ascension Day
3 Jun 2024 - Monday - Corpus Christi
10 Jun 2024 - Monday - Sacred Heart
1 Jul 2024 - Monday - Feast of St. Peter & St. Paul
20 Jul 2024 - Saturday - Independence Day
7 Aug 2024 - Wednesday - Battle of Boyaca
19 Aug 2024 - Monday - Assumption Day
14 Oct 2024 - Monday - Columbus Day Celebration
4 Nov 2024 - Monday - All Saints’ Day
11 Nov 2024 - Monday - Independence of Cartagena
8 Dec 2024 - Sunday - Immaculate Conception
25 Dec 2024 - Wednesday - Christmas

Colombia provides national healthcare. Companies also offer private healthcare insurance.

The termination process is standard in Colombia and is based on labor law requirements unless an employer can provide sufficient cause for dismissal without notice (due to misconduct, etc.).

Notice of termination must be in writing and sent to the relevant governmental authorities.

The employer must make payment to leavers on their last day at work.

Notice Period

During the first five years of service, 30 days’ notice is required up to a maximum of 90 days prior notice for longer service. For obra/labor and indefinite contracts, no notice period is required, though it is common to give 15 days. During probation, 15 days’ notice is required.

Severance Pay

In Colombia, severance pay is mandatory if applicable and determined by the employee’s length of service and the rate of earnings.

If the employee earns less than 10x the minimum monthly wage, the severance payment entitlement is 30 days for the first year of employment, plus 20 days for each additional year of service.

If the employee earns more than 10x the minimum monthly wage, the severance payment entitlement is 20 days for the first year of employment, plus 15 days for each additional year of service.

Probation Period

The probation period in Colombia is optional. It is recommended to set a probation period of 1/5 of the contract duration up to 2 months. For permanent employees, it is generally two months.

Employer Payroll Contributions

12.00% - Pension Fund (applied on salary up to 25 minimum monthly salaries (SMMLV)).
8.50% - Medical Plan (applied on salary up to 25 minimum monthly salaries (SMMLV)).
0.52% – 6.96%-Labor Risks (applied on salary up to 25 minimum monthly salaries (SMMLV)).
4.00% - Family Compensation Funds (applied on salary up to 25 minimum monthly salaries (SMMLV)).
3.00% - Family Welfare (ICBF) (applied on salary up to 25 minimum monthly salaries (SMMLV)).
2.00% - National Apprenticeship Service (SENA) (applied only on integral salary) (applied on salary up to 25 minimum monthly salaries (SMMLV)).

21.02% – 27.46%-Total Employment Cost - Employee Employee Payroll Contributions
4.00% - Pension Fund (applied on salary up to 25 minimum monthly salaries (SMMLV)).
1.00% - 2.00% - Pension Solidarity Fund (employees who earn more than four minimum legal monthly salaries must contribute an additional 1%, to the pension solidarity fund, created by law, employees who earn more than 16 minimum monthly salaries (COP 18,560,000) must contribute an additional percentage (between 0.2% and 1%), depending on the amount of salary received.)

4.00% - Medical Plan

9.00% -10.00%-Total Employee Cost

Employee Income

Tax - Tax Units (1 Tax Unit= 47,065 COP)
0.0% - 0-1,090 Tax Units
19.0% - 1,090-1,700 Tax Unit
28.0% - 1,700- 4,100 Tax Units
33.0% - 4,100- 8,670 Tax Units
35.0% - 8,670- 18,970 Tax Units
37.0% - 18,970- 31,000 Tax Units
39.0% - 31,000 Tax Units +

Payroll Cycle

The payroll cycle in Colombia is either bi-monthly, paid on the 15th and last day of each month, or monthly.

13th Salary

Paying a 13th-month salary is mandatory in Colombia. The employer must pay one additional monthly salary split in two payments: the first half paid within the first 15 days of June and the other half paid within the first 20 days of December. These will be pro-rated when a full year has not been worked.

Authority Payments

Authority Payment - Paid To - Due Date

Social security, private and government entities - Payments are done by an operator - Based on the tax number of the employer. But always in the first or 2nd week of the following month

Any foreigners coming to work in Colombia will need to have a job offer from a local employer before applying for a visa. There are several visa types, but the most commonly used is the M visa which is valid for five years. These visas are issued in person at the Ministerio de Relaciones Exteriores’ offices in Bogota.

Every foreigner with a visa valid for more than three months needs to apply and obtain a foreigner’s identity card at a regional office. This must be obtained within 15 days of entering Colombia or 15 days after the visa was issued.

Once five years have been completed, foreign nationals can apply for an R visa; then, once an individual has held an R visa for five more years, they can become a Colombian citizen.

The standard rate of VAT in Colombia is 19.00%.