What to know about hiring and paying in Colombia

With Vensure Global you can expand your global workforce to Colombia with ease. We help you find, hire, and pay employees accurately and compliantly, ensuring full alignment with local labor laws, payroll regulations, and employer requirements.

Quick Facts

Currency

Colombian Peso

Capital

Bogota

Primary Language(s)

Spanish

Payroll Cycle

Monthly

Population

53.8 Million

Value Added Tax (VAT)

19% (IVA)

Expanding into Colombia

Thinking about hiring in Colombia? This guide covers the key employment laws, payroll rules, required benefits, and compliance considerations for employers. Explore everything you need to hire and manage talent in Colombia with confidence.

Payroll & Working Hours

Minimum Wage Requirements

1.75 million pesos per month ($470 USD)

Working Hours

Primary Time Zone: Colombian Time (COT) UTC-5.

Working Hours: From 8:00AM or 9:00AM until 5:00 or 6:00PM, from Monday to Friday.

  • It is common for employees to work much later than the listed “closing time”; the exception to this is government offices, which close promptly at their designated time.
  • Banks are typically open from 9:00AM to 3:00PM on weekdays, and from 10:00AM until 1:00 or 2:00PM on Saturdays. On the last Friday of every month, banks usually close at noon. Some banks offer “extended hours,” where they either do not close until 7:00PM, or close at 3:00PM and then reopen from 4:00PM until 7:00PM.
  • It is common for retail stores to open earlier and close later than most offices.
  • Lunch breaks are for 1 hour and are taken between 12:00PM and 2:00PM.
  • Punctuality is expected for business events such as meetings. Late arrivals of five to ten minutes are tolerated, but foreign professionals should strive to be on time.
  • For social events, tardiness of 15 to 45 minutes is considered acceptable.

Overtime Pay

Overtime pay applies for work exceeding standard weekly hours, as defined by contracts or collective agreements.

  • Employees working between 11:00PM and 6:00AM receive 35% higher pay than daytime wages.
  • Exemptions: Employees earning over 10x the minimum wage or holding trust positions do not qualify for overtime pay.

Overtime Pay Rates:

  • Daytime Overtime: Paid at 125% of the regular rate
  • Night-Time Overtime: Paid at 175% of the regular rate

Sunday/Holiday Overtime:

  • Daytime: Paid at 125% of the regular rate
  • Night-Time/Holidays: Paid at 175% of the regular rate

Maximum Hours

Standard Working Hours are a maximum of 8–10 hours per day and 47 hours per week (effective July 2023). Employers must respect non-working hours and avoid contacting employees after work.

Starting summer 2023, the weekly work hours will decrease by one hour per year until reaching 42 hours per week in 2026. The reduction does not affect salary, benefits, or hourly wage value.

Break Requirements

Employees are entitled to a weekly rest, typically Sunday.

Hiring and Onboarding Information​

Background Checks

Employers commonly conduct background checks to verify work experience, public disciplinary records (for public servants), and personal references. However, certain background checks are explicitly prohibited by law, including:

  • HIV tests or medical conditions
  • Pregnancy tests
  • Mandatory military service status
  • Union affiliation
  • Diseases or disabilities

Any background check that could be deemed discriminatory is prohibited, unless an objective justification is provided.

Verification and New Hire Reporting

Employers must verify the employee’s identity and eligibility to work.

  • New hires must be reported to relevant labor authorities to ensure compliance with employment regulations.

Onboarding Process & Documentation

Employers must gather essential documents, including:

  • Identification Documents: National ID (Cédula de Ciudadanía) or passport for foreign workers.
  • Employment Contract: A signed agreement outlining job terms, salary, and benefits.
  • Tax Registration: Employee’s Tax Identification Number (NIT) for payroll processing.
  • Social Security Enrollment: Registration with pension and health insurance providers.
  • Social security registration and proof of prior employment may also be required.
  • Background Checks: If applicable, verification of work history and references.
  • Bank Account Details: For salary payments.
  • Work Visa (if applicable): Required for foreign employees.

Benefits Packages​

Healthcare

All formal employees must be affiliated with an EPS (Entidad Promotora de Salud) to access healthcare through the mandatory health plan (POS).

  • Contributions total 12.5% of salary (8.5% employer, 4% employee)
  • The POS covers consultations, diagnostics, hospitalization, and medications

Private Health Insurance (Medicina Prepagada) Many professionals expect supplementary health plans, which provide:

  • Broader doctor and clinic networks.
  • Direct specialist access (no referrals).
  • Faster appointments & private hospital rooms.
  • Extended coverage beyond POS.
  • Offering private health insurance is a key strategy for talent retention.

Retirement

Colombia’s pension system has two regimes:

  • Public Regime (RPM): Defined benefit system managed by Colpensiones, based on salary history and weeks contributed.
  • Individual Savings Regime (RAIS): Private pension funds where payouts depend on accumulated savings and returns.

Mandatory Contributions: 16% of salary (12% employer, 4% employee).

  • High earners (above 4x minimum wage) contribute 1%–2% extra to the Solidarity Pension Fund.
  • Employers must deduct & remit contributions to the chosen pension fund.

While supplementary retirement plans exist in some large companies, ensuring correct and timely pension contributions remains the primary employer responsibility.

Social Security

At this time, Vensure does not have social security details available.

Employment Contract Information​

Employment Contract Details

Colombian labor law recognizes various types of employment contracts, primarily distinguished by duration and form. While verbal agreements are legally valid, written contracts are highly recommended for clarity and legal protection.

Types of Employment Contracts:

  • Indefinite-Term Contract: No fixed end date; continues until terminated by agreement or justified cause. Offers the most stability; severance pay required for unjustified termination.
  • Fixed-Term Contract: Specifies a start and end date (maximum three years). Must be in writing; renewals beyond three times for periods under one year convert to indefinite.
  • Contract for Specific Project: Linked to the completion of a particular task or project. Ends automatically when the project concludes.
  • Casual/Accidental Contract: Covers short-term, non-routine tasks lasting no more than one month. Limited in scope and not commonly used for standard employment.

Contracts must include key details to ensure transparency:

  • Identification of Parties (Employer & Employee)
  • Start Date of the employment relationship
  • Job Title & Description of duties and responsibilities
  • Place of Work (main location of duties)
  • Compensation (salary, payment method, and frequency, meeting minimum wage requirements)
  • Working Hours (daily and weekly schedule, in line with legal limits)
  • Duration of Contract (indefinite, fixed-term, or project-based)
  • Probationary Period (if applicable, clearly stated duration)

Additional clauses covering benefits, vacation entitlements, and termination conditions are recommended for a comprehensive agreement.

Probation Period

The probation period is generally two months.

  • Fixed-Term Contracts: For contracts shorter than one year, the probation period cannot exceed 1/5 of the contract’s length.
  • Single Use: A probationary period cannot be repeated for the same position with the same employer.

Visas

  • Visitor (V) Visa: For short-term business (up to 180 days/year)
  • Migrant (M) Visa: For employment, investment, or entrepreneurship (up to 2 years)
  • Resident (R) Visa: For long-term or permanent stay

Application Process:

  • Choose visa type
  • Prepare documents (passport, financials, contracts)
  • Apply online or at consulate
  • Pay fees and attend appointment
  • Processing: 5–10 business days
  • Post-Arrival: Comply with visa terms, register if required

Independent Contractors

Independent contractors (also known as self-employed or freelance workers) are governed by civil or commercial law, not labor law. Independent contractors are not considered employees and are not entitled to benefits such as severance, paid leave, or social security contributions from the hiring party.

The terms of service are defined by a civil or commercial contract, which must clearly outline:

  • Scope of work
  • Payment terms
  • Duration
  • Deliverables

Tax and Social Security: Contractors are responsible for:

  • Paying their own taxes.
  • Contributing to the social security system, including health and pension, if their monthly income exceeds the legal threshold.

Misclassification Risk: If a contractor performs work under conditions similar to an employee (e.g., fixed schedule, subordination, exclusivity), authorities may reclassify the relationship as employment, triggering legal and financial consequences for the hiring entity.

Time Off Policies​

Paid Time Off

Employees are entitled to 15 consecutive working days of paid vacation per year after completing one full year of service.

Public Holidays

  • New Year’s Day
  • Three Kings Day
  • St. Joseph’s Day
  • Holy Thursday
  • Good Friday
  • Labor Day
  • Ascension Day
  • Corpus Christi
  • Sacred Heart
  • Feast of St. Peter & St. Paul
  • Independence Day
  • Battle of Boyaca
  • Assumption Day
  • Columbus Day Celebration
  • All Saints’ Day
  • Independence of Cartagena
  • Immaculate Conception
  • Christmas

Bereavement

  • Employees are entitled to 5 consecutive working days of paid leave in the event of the death of a close family member (e.g., spouse, parent, child, sibling).
  • This leave is fully paid and must be granted immediately upon notification.
  • The employee may be required to provide proof of the relationship and the death, such as a death certificate.

Leave Policies​

Maternity Leave

Female employees are entitled to 18 weeks of paid maternity leave at 100% of their regular salary. The employer pays the salary and is fully reimbursed by the social security system.

New options include:

  • Shared parental leave: Parents can split the last 6 weeks of maternity leave.
  • Flexible part-time parental leave: Parents may exchange part of their leave for part-time work.

Paternity Leave

  • Fathers are entitled to 8 working days of paid paternity leave at 100% of their salary.
  • Paid by the employer and reimbursed by the EPS.
  • A government proposal is under review to gradually increase paternity leave to 12 weeks.

Parental Leave

Colombia has no additional statutory law for Parental Leave.

Sick Leave

  • First 2 days: Paid by the employer 100% of the employee’s regular salary
  • From day 3 to day 180: Paid at 66.67% of the salary, covered by the social security system (EPS), but initially paid by the employer and later reimbursed

A medical certificate from a recognized Colombian social security entity is required.

Termination Information

Termination Requirements

At this time, Vensure does not have termination requirements details available. For information around termination notice periods, see below.

Notice Period

  • Indefinite-Term Contracts: No statutory notice is required for termination without just cause, but providing notice is considered good practice.
  • Fixed-Term Contracts: Employers must give at least 30 days’ written notice before the contract’s expiration if they do not intend to renew it.
  • Contracts for Specific Projects: No notice is required upon completion of the project or task.

Severance Pay

Severance is owed when an employee is dismissed without just cause under an indefinite-term contract: If the employee earns less than 10x the minimum monthly wage:

  • 30 days’ salary for the first year of service.
  • 20 additional days for each subsequent year (or proportional for partial years).

If the employee earns 10x or more the minimum monthly wage:

  • 20 days’ salary for the first year.
  • 15 additional days for each subsequent year (or proportional for partial years).

Unemployment Insurance

To qualify for unemployment benefits, individuals must:

  • Be affiliated with a Family Compensation Fund.
  • Have contributed for at least 12 continuous or discontinuous months in the last 3 years (employees) or 2 years (independent workers).
  • Be unemployed involuntarily (i.e., not due to resignation or dismissal with just cause).
  • Be actively seeking employment and registered with the Public Employment Service.

Monetary Support:

  • Unemployment subsidy equivalent to two minimum monthly wages, paid in three monthly installments.
  • Health and pension contributions (based on the minimum wage) are covered for up to 6 months.

Job Placement Services: Access to training programs, job search assistance, and career counseling through the Public Employment Service.

Access to Microcredit and Entrepreneurship Support:

  • Some programs offer financial aid or training for starting a business.

Application Process

  • Apply through your Family Compensation Fund.
  • Submit required documents: ID, proof of unemployment, and contribution history.
  • Register with the Public Employment Agency and participate in job search activities.

Workplace Safety​

Anti-Discrimination Practices

Colombian law guarantees equal treatment and prohibits discrimination based on sex, race, nationality, language, religion, or ideology. Special protections exist for disabled individuals, unionized employees, and pregnant women, reinforced by rulings from the Colombian Constitutional Court.

  • Employers cannot engage in discriminatory practices at any stage of employment.
  • Hiring discrimination is prohibited, including unjustified requests for HIV or pregnancy tests.
  • Anti-discrimination laws have evolved through case law, particularly safeguarding against wrongful termination based on discriminatory grounds.

Since 2006, Colombia has had legal safeguards against workplace harassment. Law 2365 of 2024 expands protections against sexual harassment, covering inappropriate behaviors in workplaces and educational institutions.

  • Sexual harassment may arise in hierarchical or peer relationships and can be a single occurrence or pattern of behavior.
  • Employers must prevent, investigate, and sanction harassment, implementing clear policies that align with workplace regulations.

Protection for Victims and Witnesses:

  • Employees filing harassment complaints cannot be dismissed without just cause for six months after their complaint.
  • Witnesses in harassment cases also receive protection from termination.
  • These laws ensure a safe and equitable work environment, holding employers accountable for workplace fairness.

Workplace Safety Standards

Employers in Colombia must implement an Occupational Health and Safety Management System (SG-SST) to ensure a safe work environment. Key requirements include:

  • Identifying and managing workplace hazards.
  • Establishing measures to prevent occupational accidents and illnesses.
  • Companies with 10+ employees must form a joint employer-employee safety committee.
  • Providing education on workplace risks and safety procedures.
  • Conducting pre-employment, periodic, and exit medical exams.
  • Investigating and reporting workplace accidents and occupational diseases.
  • Developing response plans for workplace emergencies.
  • Subject to labor authority inspections to ensure adherence.

Workers’ Compensation

In Colombia, worker’s compensation laws ensure financial protection for employees who suffer work-related injuries or illnesses. Key aspects include:

  • Employers must provide occupational risk insurance through the General System of Occupational Risks (SGRP).
  • Employers contribute 0.348% to 8.7% of an employee’s salary, depending on the risk level of the job.
  • Injured workers receive medical treatment, rehabilitation, and wage compensation during recovery.
  • Compensation is provided for permanent disabilities or death, including survivor benefits for dependents.
  • Employers must report workplace accidents and illnesses to the Social Security System and ensure compliance with safety regulations.

Labor Laws

Labor Law Sanctions

Misclassification of Employees: Employers who misclassify employees as contractors to avoid paying benefits and taxes can face significant penalties, including back wages, missed social security contributions, back taxes, and additional fines.

Overtime Violations: Employers must comply with regulations on working hours and overtime pay. Failure to do so can result in fines and sanctions. For example, overtime work cannot exceed two hours per day or 12 hours per week, and night work (between 9 PM and 6 AM) requires additional pay.

Failure to Provide Statutory Benefits: Employers are required to provide statutory benefits such as public holidays, maternity leave, paternity leave, sick leave, and annual leave. Non-compliance can lead to legal action and financial penalties.

Union Rights Violations: Workers in Colombia have the right to form unions and engage in collective bargaining. Employers who violate these rights can face sanctions and legal consequences.

Workplace Safety Violations: Employers must ensure a safe working environment. Violations of workplace safety regulations can result in fines and other penalties.

Disclaimer

The information included in this section are provided for reference as samples of official documents derived from government agencies, law firms, or other entities. This content is not and may not be construed to be legal advice or to be a legal opinion on any specific facts or circumstances, or to be a comprehensive or all-inclusive compilation of facts potentially relevant to country, federal, state, or local laws. Any data referenced here is for informational purposes only. It is strongly recommended that any data you view, be carefully reviewed as well as any applicable changes in federal, state, and local laws, regulations, guidance, and guidelines set forth by the governing agencies, which may change at any time and in such instances will render some content in the above information void or inaccurate. Users should not rely on this content for editing and customization exclusively but should consult an attorney for legal guidance for proper and compliant drafting. You are solely responsible for compliance with all applicable laws and regulations.

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