SALARY PAYMENT IN Colombian Peso (COP, $)
CONTRACT LANGUAGES Spanish / English
PAYROLL TAX 21.02% – 27.46%
PAYROLL CYCLE Monthly
TIME TO HIRE 24 hours
Hire and pay talents
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Horizons provides compliance solutions to ensure your business in Colombia operates in line with Colombia labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Colombia in a range of industries, from customer service, to accounting services, to software development. We also process monthly payroll, and, as an Colombia Employer of Record, absorb all local employer liabilities. Partnering with our Colombia PEO is the quickest and most cost-effective way to enter the Colombia market.
|PEO Platform Hire in Colombia, and pay employees through our platform or app.||PEO Cost Our Colombia PEO solution is the most affordable on the market.||Time-to-hire Fast onboarding in Colombia, hire in as little as 24 hours.|
|Contracts We draft labor contracts compliant with Colombia labor law.||Local Benefits We administer all mandatory benefits and contributions in Colombia.||180+ Countries It doesn’t stop with Colombia — we are an international PEO|
It is not completely necessary to have an employment contract in Colombia, but we strongly recommend that you provide a written contract for every employee. Contracts should be written in Spanish and include details of the employment such as compensation, vacation leave, and so on. Any references to money should be in the local currency of the Colombian peso.
|Probationary period||Max. 2 months (or 1/5 the total contract duration)|
|Termination notice period||0 – 45 days|
|Severance||Salary of duration left on contract|
|Probationary period||3 months, unless otherwise stated in writing|
|Termination notice period||0 – 45 days|
If employee earns less than 10x the minimum annual salary: 30 days’ salary + 20 days’ salary per year of employment
If employee earns more than 10x the minimum annual salary: 20 days’ salary + 15 days’ salary per year of employment
The typical working week in Colombia is 48 hours long, spread over five or six days. Overtime is paid at a rate of at least 125% of normal pay, or 175% for night shifts.
Quick, compliant hiring in 24 hours—no subsidiary required.
|1 Jan, 2023||New Year’s Day|
|9 Jan, 2023||Epiphany|
|20 Mar, 2023||Saint Joseph’s Day|
|6 Apr, 2023||Maundy Thursday|
|7 Apr, 2023||Good Friday|
|1 May, 2023||Labor Day / May Day|
|22 May, 2023||Ascension Day|
|12 Jun, 2023||Corpus Christi|
|19 Jun, 2023||Sacred Heart|
|3 Jul, 2023||Feast of Saint Peter and Saint Paul|
|20 Jul, 2023||Independence Day|
|7 Aug, 2023||Battle of Boyacá Day|
|21 Aug, 2023||Assumption of Mary|
|16 Oct, 2023||Columbus Day|
|6 Nov, 2023||All Saints’ Day|
|13 Nov, 2023||Independence of Cartagena|
|8 Dec, 2023||Feast of the Immaculate Conception|
|25 Dec, 2023||Christmas Day|
Employees in Colombia are generally entitled to at least 15 days of paid vacation leave.
In general, employees in Colombia receive two-thirds of their normal pay when absent from work through sickness. This is covered by their employer for the first two days, then by the state up to 180 days.
Female employees in Colombia are entitled to 14 weeks of paid maternity leave, split into two weeks before giving birth and 12 after giving birth.
Male employees in Colombia are entitled to eight days of paid paternity leave.
Employers and employees in Colombia are required to pay a percentage of salaries into various social schemes:
The income tax rate in Colombia is between 0% and 39% depending on income level.
Corporate tax in Colombia is charged at a rate of 32%, but this is set to decrease slightly in 2022.
Colombia does have a social healthcare system, so private insurance is not necessary. However, many employers do choose to offer private insurance as a benefit, and private care can be superior to public care.
Termination of employees in Colombia can be difficult, and it is common for employees to take legal action if they feel unfairly treated. To avoid this, it is always best to come to an agreement with employees, which may involve providing a bonus payment.
Employees are generally also entitled to a severance payment upon termination, which equates to one month of salary for every year of service.
The minimum wage in Colombia (in 2020) is 377, 803 pesos per month for full-time employees.
|Minimum Wage Country Comparison Chart||(Per month in USD)|
Setting up a benefits system for your Colombian employees can be difficult if you are unfamiliar with the country and its unique labor laws. If you want to independently set up your benefits system, you can expect it to take weeks or even months, potentially presenting significant delays to your Colombian expansion.
Outsourcing your benefit management process ensures that you fully understand and adhere to the rules, ensuring your compliance and speeding up the process significantly. At Horizons, our Colombia employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.
With Horizons, you get quick service, transparent pricing, and expert support.
A Colombia PEO and a Colombia EOR are two types of companies which specialize in providing human resources services to businesses in Colombia.
The main difference between a Colombia PEO and a Colombia EOR is in the scope of their services.
Colombia PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Colombia PEO is essentially outsourcing your HR duties in Colombia.
Colombia EORs actually take over as the legal employer of your employees based abroad. Colombia EORs become responsible for labor compliance for your employees in Colombia.
At Horizons, we offer both PEO and EOR services in Colombia. Get in touch now and let us know what service you are seeking.
A PEO in Colombia can feasibly hire both local and foreign nationals to work in Colombia.
However, the ability of Horizons to sponsor your foreign national employee in Colombia may be limited due to visa quotas practiced in many countries.
Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.
In most cases, Horizons’ Colombia PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Colombia.
It is possible to get a work visa in Colombia. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Colombia are limited, however—get started today to secure your employees’ visa spot.