Employer of Record in Colombia

General Information

• Currency: Colombian Peso (COP)
• Employer Taxes: 21.02% – 27.46%
• Payroll Frequency: Bi-Weekly / Monthly
• Employee Costs: 10%
• Capital: Bogota
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: The minimum monthly wage in Colombia is set at COP 1,300,000.

Payroll

Payroll Cycle: In Colombia, the payroll cycle can be either bi-monthly, with payments made on the 15th and the last day of each month, or monthly.

13th Salary

In Colombia, employers are required to pay a 13th-month salary, which is divided into two installments. The first half must be paid by the first 15 days of June, and the second half by the first 20 days of December. If the employee has not worked the entire year, these payments are made on a pro-rata basis.

Working Hours

General: In Colombia, the maximum legal working hours range from 8 to 10 hours per day, with a weekly limit of 47 hours (as of July 2023). Employers must respect workers’ non-working hours and avoid contacting them outside of those times.

Starting in summer 2023, the workweek will be gradually reduced by one hour each year without impacting wages, benefits, or the value of the daily working hour. The goal is to lower the workweek to 42 hours by 2026. In 2023 and 2024, the reduction will be by one hour annually, followed by two hours in both 2025 and 2026.

Overtime: Overtime in Colombia is paid for any work beyond the standard weekly hours and is governed by employment contracts or collective agreements.

Employees working between 22:00 and 06:00 receive a 35% premium over their regular daytime salary. However, employees who earn more than 10 times the minimum wage or those in positions of trust are exempt from overtime pay.

For eligible employees, overtime is compensated as follows:

Sunday, holiday, or extra daytime overtime is paid at 175% for work on holidays and night hours, and 125% for overtime during regular daytime hours.

Daytime overtime is paid at 125% of the regular hourly rate.

Nighttime overtime is paid at 175% of the regular rate.

Leave

Annual Leave (Vacation):

In Colombia, paid leave is stipulated in the employment contract, with employees entitled to a minimum of 15 days of paid vacation annually after completing one year of service. This entitlement is separate from any public holidays.

Public Holidays

In Colombia, several public holidays are subject to a law that moves them to the following Monday if they do not naturally fall on a Monday. This practice helps to create long weekends, promoting rest and tourism.

Sick Days

In Colombia, all employees are entitled to paid sick leave, with the employer covering the first two days at 100% of the employee’s regular salary. To qualify for sick leave payments, the employee must provide medical authorization from a Colombian social security entity.

From the third day onward, the social security system assumes responsibility for payments at a rate of 66.67% of the employee’s regular wage. However, the employer is required by law to continue making these payments until the 180th day, after which they are reimbursed by the social security system. These regulations also apply to disability leave.

Maternity Leave

Employees in Colombia are entitled to 18 weeks of paid maternity leave. The payment for this leave is based on the declaration made at the start of the leave, which the employer reports to social security on the first day of leave.

Employees on an integral salary are entitled to 70% of their salary during maternity leave, while those on an ordinary salary receive 100% of their regular wage. The employer initially makes these payments and is later fully reimbursed by the social security system.

Paternity Leave

Employees are entitled to two weeks of paid paternity leave at 100% of their regular salary. The employer initially covers this amount and is then fully reimbursed by social security (EPS).

Parental Leave

There is no additional parental leave in Colombia.

Other Leave

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.

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