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Capital City
Bogota
Currency
Colombian Peso
(
$
)
Timezone
GMT -5
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
0% - 39%
Languages
Spanish
Capital City
Bogota
Currency
Colombian Peso
(
$
)
Timezone
GMT -5
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
0% - 39%
Languages
Spanish
Colombia has a well-educated and skilled workforce, particularly in fields like technology, customer service, and marketing. By hiring remote workers in Colombia, you can tap into this talent pool and find individuals with the skills and expertise you need.
Labor costs in Colombia are often lower than in many Western countries, which can result in cost savings for your business. You can hire highly qualified professionals at a competitive rate.
Colombia shares time zones with many North American countries, making it easier to coordinate work and communication between your remote team and your main office.
Colombian remote workers often have a good understanding of Western culture and business practices, making it easier to integrate them into your team and align them with your company's values and goals.
Businesses can only operate smoothly in Colombia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Colombia below, to avoid any compliance issues.
In Colombia, it's advisable to create a written employment contract when hiring a new employee. Colombian labor law distinguishes between permanent and fixed-term contracts, with the latter needing written documentation and a maximum duration of three years. The contract should include details such as job description, salary, benefits, total holidays, and any probationary period.
We can help you get a new employee started in Colombia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
Employees are typically expected to work up to 48 hours in a standard week, which is equivalent to eight hours per day in a six-day workweek. They are entitled to one day off each week, usually on Sunday, but they can choose an alternate day off if specified in their employment contract, providing flexibility.
Overtime work should not exceed two hours per day or a total of twelve hours per week. Compensation for overtime must be at a minimum rate of 125% for daytime work and 175% for work during nighttime or on public holidays.
Probationary periods are optional but should not exceed 60 days from the date of employment.
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1 January - 31 December is the 12-month accounting period that businesses in Colombia use for financial and tax reporting purposes.
The payroll cycle in Colombia is usually monthly, with employees being paid by the last working day of the month.
The minimum wage for employees in Colombia is typically 32,500 COP per hour, amounting to ~1,300,000 COP per month for a typical 40 - 48 hour work week.
In Colombia, employees are legally entitled to a 13th-month salary.
Employer payroll contributions are generally estimated at an additional 0% - 39% on top of the employee salary in Colombia.
In Colombia , the typical estimation for employee payroll contributions cost is around 9%-10%.
In Colombia, employee income is taxed in "units. One tax unit is equal to 35,607 COP.
Colombian workers and their employers are required to make regular contributions to the pension system. These contributions are deducted from employees' salaries and matched by their employers. The pension benefits in Colombia are calculated based on the average salary and the number of weeks or months of contributions. The formula takes into account the individual's average earnings over their career and the number of weeks or months contributed. The more one contributes and the higher their average salary, the larger their pension benefits will be.
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In Colombia, work permits and visas are essential for employers hiring foreign workers. The process involves submitting applications, paying fees, and meeting specific eligibility criteria. The key visa types include the M Visa for employment, the V Visa for short-term work, and the R Visa for permanent residency. Employers must ensure compliance with local labor regulations when sponsoring foreign employees.
The annual leave entitlement in Colombia is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
Colombia has 18 mandatory national public holidays in a year
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
Female employees can take 18 weeks of fully paid maternity leave which can start up to two weeks before birth.
Fathers of newborn children can take 2 weeks of paternity leave.
Every employee is eligible for paid sick leave provided by their employer for the initial two days of leave, equivalent to 100% of their regular pay rate.
In Colombia, there isn't a distinct "parental leave" policy separate from maternity and paternity leave. However, the country has implemented provisions that allow parents to share a portion of the maternity leave. Specifically, mothers can transfer up to six weeks of their 18-week maternity leave to the father, enabling shared caregiving responsibilities.
5 days
5 days
In Colombia, termination procedures typically adhere to labour laws, unless there are valid reasons for immediate dismissal. Written notice of termination is required and must be sent to the relevant government authorities. Any outstanding payments to departing employees should be settled on their last workday. In Colombia, termination procedures typically adhere to labor laws, unless there are valid reasons for immediate dismissal, like gross misconduct. Written notice of termination is required and must be sent to the relevant government authorities. Any outstanding payments to departing employees should be settled on their last workday. Valid reasons for dismissal include:
Employers are only required to give notice to employees when a fixed-term contract is ending without an extension, which has a 30-day notice period. During the first five years of employment, a 30-day notice is mandatory, and it extends to 90 days for employees with more than five years of service.
Severance pay is required if the employee is dismissed without cause .
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
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