Payroll and Benefits Guide - Colombia

Colombia
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Currency

Colombian Peso
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Capital

Bogota
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Employer Taxes

21.02-27.46%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

While only second in biodiversity, Colombia still has the highest number of species per square kilometer in the world.

Colombia mines the most emeralds in the world, making up more than 70% of the world’s total yield yearly.

The Amazon rainforest covers a third of Colombia’s total land mass.

From mountains to rainforests, Colombia has 59 natural parks.

It is the home of The Sierra Nevada de Santa Marta.

Colombia is the origin of the myth of El Dorado, the city of gold.

Colombia

Contributions

Employee Payroll Tax

Pension Fund4.00-8.00%
Medical Plan4.00%

Employer Payroll Tax

Pension Fund12.00%
Medical Plan8.50%
Labor Risks0.52-6.96%
Family Compensation Funds4.00%
Family Welfare (ICBF)3.00%
National Apprenticeship Service2.00%

Payroll

Payroll Cycle

Colombia has either a bi-monthly or monthly cycle.

13th Salary

Colombia requires employers to pay all employees a 13-month salary with the first given on June and the last half given in December.

Work Hours and Week

A Colombian workweek must have a maximum of 8-10 hours daily with a cumulative of 48 hours in a week with plans to reduce it to 42 hours by 2026.

Overtime

Any additional hours more than the 48-hour cap is considered and paid as overtime. Depending on the time and day of said overtime, the pay could reach up to 175% of the regular rate.
Colombia

Leave

Paid Time Off

At least 1 year of employment grants employees at least 15 days of paid leave as defined on employment contracts.

Public Holidays

There are 18 public holidays in Colombia.

Sick Days

With the requirement of a medical authentication from a Colombian social security organization, all employees are given paid sick leave at a rate of 100% for the first two days. From the third until the one-hundred eightieth day, an employee is paid 66.67% of his normal rate.

Maternity Leave

Pregnant employees are given eighteen paid weeks of maternity leave with a pay rate of 100%.

Paternity Leave

Fathers only have eight days of paid paternity leave with a pay rate of 100%.

Parental Leave

Parental leave is not given in Colombia.

Termination

Termination Process

Before termination, the cause must first be determined. The cause and termination must be in writing and presented to applicable governmental offices. Payment is also required to be given to employees on their last day.

Notice Period

While in probation and indefinite contracts, a fifteen-day notice is required. Otherwise, a minimum of thirty days and a maximum of ninety days notice is required.

Severance Pay

Severance pay is mandated by law for all applicable situations. Depending on the pay rate, it ranges from twenty days to thirty days of pay on the first year of employment with the addition of fifteen to twenty days for every succeeding year.

Probation Period

Probation Period

Probations are optional in Colombia, but it is recommended to set a probation period of up to two months.

Immigration

Before a foreigner can apply for a Colombian working visa, a job offer from a Colombian employer. They also need to have a foreigner’s identity card from a local government office.

VAT

The commonly used standard rate of VAT in Colombia is 19.00%