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How to hire and pay employees in Colombia
Slasify
Jun 21, 2025
Before Hiring in Colombia
Discover the global hiring and employment landscape in Colombia—a vibrant economy with one of the most diverse ecosystems in the world. As a leading destination for foreign investment in Latin America, Colombia boasts a strategic location, business-friendly policies, and a robust legal framework that supports international commerce.
Explore the employment essentials including payroll, personal income tax, statutory contributions, annual leaves, minimum wage, terminations, visa requirements, and more. Gain valuable compliance insights for a smooth entry into the dynamic Colombia market with Slasify's global premium HR platform.
At a Glance
| Capital | Bogotá |
| Currency | Colombian Peso (COP) |
| Payroll Cycle | Monthly |
| Minimum Wage | COP 1,423,500 per month |
| Annual Leave | 15 days |
| Personal Income Tax | Up to 39% |
Personal Income Tax
| Tax Units (1 unit = COP 49,799 for FY2025) | Progressive Tax Rate (%) |
|---|---|
| Up to 1,090 | - |
| 1,090–1,700 | 19 |
| 1,700–4,100 | 28 |
| 4,100–8,670 | 33 |
| 8,670–18,970 | 35 |
| 18,970–31,000 | 37 |
| 31,000 and over | 39 |
Local Tax
There are no local taxes on employment income in Colombia.
Statutory Contributions
Contributions made towards the Colombian social security system covering general pension, health and professional risk is calculated based on the employee's monthly salary of up to 25 SMMLV.
For employees who are paid an integral salary, where all benefits and potential surcharges are packaged into a fixed salary payment, the basis of contributions shall be the lower of 25 SMMLV or 70% of the integral salary.
Note: SMMLV refers to the prevailing minimum wage.
Employer Contributions
| Contribution rate | Note | |
|---|---|---|
| General Pension | 12% | - |
| Health | 8.5% | This shall only apply to employees whose salaries are over 10 SMMLV. |
| Payroll Tax | 9% |
The contribution rate here shall be distributed between the ICBF (3%), SENA (4%) and Family Compensation Fund (5%). Employers may be exempted from contributions to the ICBF and SENA if the employee is earing less than 10 SMMLV. |
| Professional Risk | 0.522%–6.96% | - |
For employees who are paid an integral salary, the basis of contributions for payroll taxes shall be 70% of the integral salary.
Employee Contributions
| Contribution rate | Note | |
|---|---|---|
| General Pension | 4% | Employees earning more than 4 SMMLV must contribute an additional 1%, and those earning more than 16 SMMLV must contribute an additional 0.2%–1% depending on the salary received. |
| Health | 4% | - |
Payment of Wages
The salary in money must be paid for equal periods and in arrears, in legal currency, with a payment period that cannot be longer than a week for daily wages and a month for salaries.
Minimum Wage
Effective January 1, 2025, the minimum wage (SMMLV) in Colombia is set at COP 1,423,500 per month.
It is important to note that employers are also obligated to pay their employees earning up to 2 SMMLV a transportation allowance amounting to at least COP 200,000 per month.
Statutory Bonus
Employers are obligated to pay their employees a service premium equivalent to 30 days' salary per year of service, which will be recognized paid in installments.
| Payment deadline | |
|---|---|
| First half | June 30 |
| Remaining amount | December 20 |
The service premium be paid for the entire semester worked, and it shall be prorated according to the employee's actual time worked.
Note: This annual bonus is not salary, nor will it be computed as a salary factor in any case.
Termination
Employers looking to unilaterally dismiss their employees are obligated to tell them the concrete and specific reasons for their dismissal. A comprehensive list of just causes for dismissal can be found in Article 62 of the Labor Code.
In any case, employees who are being dismissed must be given the opportunity to defend themselves against any allegations made against them during the course of the dismissal.
Notice Period
An indefinite term employment contract may be terminated, either by the employee or the employer, with the observance of the following notice period:
| Notice period in the event of dismissal | Notice period in the event of resignation |
|---|---|
| 15 days | 30 days |
Regardless, if the employee is dismissed for a reason that is severe enough to warrant immediate termination, they can be dismissed without the observance of any notice period.
| Reasons justifying dismissal with notice | Reasons justifying dismissal without notice |
|---|---|
| Poor performance at work in relation to the employee's capacity and average performance in similar tasks, when it is not corrected within a reasonable period of time despite the request of the employer | Employee's deception through the presentation of false certificates for admission or intended to obtain an undue advantage |
| The systematic non-execution, without valid reasons, of the employee's conventional or legal obligations | Any act of violence, insult, bad treatment or serious indiscipline incurred by the employee in their work, against the employer, their family, management personnel or colleague |
| Any vice of the employee that disturbs the discipline of the establishment | Any serious act of violence, injury or ill-treatment incurred by the employee outside of service against the employer, their family or their representatives and partners, workshop leaders or security guards |
| The systematic reluctance of the employee to accept preventive, prophylactic or curative measures prescribed by the employer's doctor or by the authorities to avoid illnesses or accidents | Any material damage intentionally caused to buildings, works, machinery and raw materials, instruments and other objects related to work, and any serious negligence that endangers the safety of people or things |
| The inability of the employee to carry out the assigned work | Any immoral or criminal act that the employee commits in the workplace or in the performance of their duties |
| The recognition of the employee's retirement or disability pension while at the service of the company | Any serious violation of the special obligations or prohibitions incumbent on the worker in accordance with Articles 58 and 60 of the Labor Code, or any serious offense classified in collective pacts or conventions, arbitration rulings, individual contracts or regulations |
|
The employee's contagious or chronic illness, which is not professional in nature, as well as any other illness or injury that incapacitates them, whose cure has not been possible for 180 days. Dismissal for this reason cannot be carried out until the expiration of said period and does not exempt the employer from the legal and conventional benefits and compensation derived from such illness. |
Preventive detention of the employee for more than 30 days, unless subsequently acquitted, or correctional arrest that exceeds 8 days, or even for a shorter period, when the cause of the sanction is sufficient in itself to justify the termination |
| The employee reveals technical or commercial secrets or makes known matters of a reserved nature, to the detriment of the company. |
Note: A list of reasons that would justify an employee's decision to resign from their position can be found in Article 62 of the Labor Code.
Severance Pay
In the event of unilateral termination without proven just cause by the employer or if the employer gives rise to unilateral termination by the employee for just cause, the employer shall pay the following severance:
| Length of service | Severance for employees earning less than 10 times the minimum wage | Severance for employees earning at least 10 times the minimum wage |
|---|---|---|
| Up to 1 year | 30 days' salary | 20 days' salary |
| More than 1 year | +20 days' salary per year of service in addition to the first and proportionally by fraction | +15 days' salary per year of service in addition to the first and proportionally by fraction |
Probationary Period
Probationary periods must be stipulated in writing. Otherwise, the services shall be understood to be regulated by the general rules of the employment contract.
Probationary periods shall not exceed the following durations:
| Indefinite-term employment | Fixed-term employment |
|---|---|
| 2 months | 20% of the term initially agreed for the respective contract, but may not in any case exceed 2 months |
When the probationary period is agreed for a shorter period than the maximum limits, the parties may extend it before its expiration up to the stipulated limits.
In any case, the probationary period may be terminated unilaterally at any time, without prior notice.
Note: When successive employment contracts are concluded between the same employer and employee, the stipulation of the probationary period is only valid for the first contract.
Work Time Rules
Standard Working Hours
An employee's ordinary working hours are subject to a maximum of 42 hours per week, distributed over 5 or 6 days.
Break Period
The working hours during each day must be distributed in at least 2 sections, with an intermission of rest that is rationally adapted to the nature of the work and the needs of the employees. The time of this rest is not counted as part of the employee's working hours.
In addition to the aforementioned break, employers are also obligated to grant their employees the following breaks to breastfeed their child without any deduction in salary:
| Child's age | Breastfeeding break entitlement |
|---|---|
| Up to 6 months | 30-minute break, 2 times per day |
| Over 6 months, up to 2 years | 30-minute break, 1 time per day |
Overtime
Overtime refers to work that exceeds the agreed ordinary working day, and in any case work that exceeds the legal maximum. This is only allowed with the authorization of the Ministry of Labor and in accordance with the ratified international labor conventions.
Regardless, employees may be required to work overtime by the employer without permission of the Ministry of Labor if an accident threatens, or when an emergency work must be carried out on, the company's machines or equipment, or when there are other force majeure or fortuitous events.
In any case, overtime hours shall not exceed 2 hours per day and 12 hours per week, and when the working hours are set by agreement between the employer and the employee to be 10 hours per day, overtime may not be worked on the same day.
Overtime work shall be remunerated with a surcharge of 25% on the value of ordinary daytime work or, when it falls at night, with a surcharge of 75%.
Weekly Rest Days
Employers are generally obligated to give paid Sunday rest to all their employees. Sunday rest shall be remunerated with a day's ordinary salary to employees who do not miss work or who, if they are absent, have done so for just cause or through the fault or disposition of the employer.
Work during mandatory rest days is only permitted if they work in tasks that are not susceptible to interruption by nature or for technical reasons, in tasks aimed at satisfying urgent needs, such as public services, the sale and preparation of drugs and food, or in the work of domestic service and private drivers.
Work on Sundays shall be remunerated with a surcharge of 75% on the ordinary salary in proportion to the hours worked or compensatory rest. However, if the employee normally works on a mandatory rest day, they shall be entitled to both the surcharge and compensatory rest.
| Occasional Sunday work | Normal Sunday work |
|---|---|
| When the employee works up to 2 Sundays during the calendar month | When the employee works 3 or more Sundays during the calendar month |
Note: The employee may agree with the employer on their mandatory rest day on either a Saturday or a Sunday, which will be recognized in all its aspects as an institutionalized mandatory Sunday rest.
Holiday and Leave Entitlements
Public Holidays
Employees have the right to paid rest on public holidays. There are 17 days of public holidays in Colombia for 2025.
| Holiday | Date |
|---|---|
| New Year’s Day | January 1 |
| Epiphany Holiday | January 6 |
| St Joseph's Day | March 24 |
| Maundy Thursday | April 17 |
| Good Friday | April 18 |
| Labor Day | May 1 |
| Ascension Day Holiday | June 2 |
| Corpus Christi Holiday | June 23 |
| Sacred Heart Day, Feast of St Peter and St Paul | June 30 |
| Independence Day | July 20 |
| Battle of Boyacá Day | August 7 |
| Assumption Day Holiday | August 18 |
| Columbus Day Holiday | October 13 |
| All Saints' Day Holiday | November 3 |
| Independence of Cartagena Holiday | November 17 |
| Immaculate Conception | December 8 |
| Christmas Day | December 25 |
Work on public holidays shall be remunerated with a surcharge of 75% on the ordinary salary in proportion to the hours worked.
Annual Leave
Employees with a full year of service shall be entitled to 15 consecutive business days of paid annual leave.
The annual leave period must be indicated by the employer no later than within the following year, and they must be granted at the request of the employee without harming the service and the effectiveness of the rest. Employers must announce the date on which the vacation will be granted 15 days in advance.
The employer and the employee may agree in writing, upon the employee's request, to be paid in money for up to half of the annual leave.
In any case, the employee must enjoy at least 6 continuous business days of leave annually, which cannot be accumulated. The parties may agree to accumulate the remaining vacation days for up to 2 years, or up to 4 years for certain employees.
Sick Leave
In the event that the employee is unable to work due to a proven non-occupational illness, they shall be entitled to a monetary assistance from their employers for up to 180 days.
| Period of absence | Sickness benefit |
|---|---|
| First 90 days | 66.66% of the salary |
| Remaining days | 50% of the salary |
The provision of sickness benefit will cease to be the responsibility of the employer when their risk is assumed by the Colombian Institute of Social Security, in accordance with the law and within the regulations issued by the same Institute.
Maternity Leave
Pregnant employees are entitled to 18 weeks of paid maternity leave, with a week of the leave being taken before the expected date of delivery unless the treating physician prescribes something different.
| Circumstances | Maternity leave extension |
|---|---|
| Premature birth | The difference between the gestational date and the full-term birth shall be accounted for and added into the 18 weeks' leave |
| Multiple births | Maternity leave shall be extended by 2 weeks |
| Giving birth to a disabled child |
In order to enjoy maternity leave, the employee must present their employers with a medical certificate stating the employee's pregnancy status, their expected date of delivery and an indication of the day from which the leave must begin.
The provision of maternity benefit will cease to be the responsibility of the employer when their risk is assumed by the Colombian Institute of Social Security, in accordance with the law and within the regulations issued by the same Institute.
Paternity Leave
Working fathers are entitled to 2 weeks of paid paternity leave, which shall apply to children born to their spouse or permanent partner, or to those who are adopted. The only valid support for granting paid paternity leave is the Civil Birth Registry, which must be submitted to the EPS no later than 30 days following the date of birth of the child.
Paid paternity leave will be provided by the EPS and will be recognized proportionally to the weeks contributed by the father during the gestation period.
Parental Leave
Working fathers may freely distribute among themselves the last 6 weeks of the mother's leave as long as they meet the requirements set forth in the Labor Code.
The time of shared parental leave will be counted from the date of birth unless the treating doctor has determined that the mother must take 1–2 weeks of leave prior to the probable date of delivery or by the determination of the mother. Shared parental leave shall also apply with respect to premature and adopted children, taking into account Article 236 of the Labor Code.
In any case, the mother must take at least the 12 weeks after childbirth, which will be non-transferable. The remaining 6 weeks may be distributed between the mother and father by mutual agreement. In no case may leave periods be fragmented, interspersed or taken simultaneously except for postpartum illness of the mother, duly certified by the doctor.
Shared parental leave will be paid based on the employee's salary and it will be the responsibility of the respective employer or EPS, in accordance with current regulations. With that, the only valid support for granting a shared leave is the Civil Birth Registry, which must be submitted to the EPS no later than 30 days following the date of birth of the child.
Both parents must also make a signed document explaining the agreed distribution and present it to their employers within 30 days from the birth of the child. These agreements must be authorized by the treating doctor in writing as well.
Other Leave
The employment contract shall be suspended in the event of a temporary leave granted by the employer, for disciplinary reasons or when the employee is called to perform military service, where the employer is obligated to retain the employee's position for up to 30 days after the end of the service.
During the period of the suspension, the employee's obligation to provide their service and the employer's obligation to pay salaries are interrupted unless otherwise required by Law.
Moreover, employers are obligated to grant their employees the following leaves:
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Bereavement Leave | Paid | 5 days | To be taken in the event of the death of the employee's spouse, permanent partner or a family member up to the second degree of consanguinity. |
| Family Emergency Leave | Paid | To be assessed on a case-by-case basis | To be taken in case of serious domestic calamity, duly proven. |
| Public Duty Leave | Both | - |
For employees to perform temporary official positions of compulsory acceptance. Voting jurors are entitled to a paid rest day, which can be taken within 45 days following the vote. |
| Voting Leave | Paid | 0.5 day | For employees to exercise the right to vote. |
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