How to hire and pay employees in Colombia
With Instahirin, your business can easily hire employees in Colombia. No more worrying about local laws, complex tax systems, or managing international payroll.
Before hiring
EMPLOYEES IN The Colombia
Before hiring employees in Colombia, one key thing employers should be aware of is the country’s data protection law 1581 of 2012. Employers are required to protect employee personal data and obtain explicit consent for its collection, use, and international transfer. Ensuring compliance with these rules is crucial before making any cross-border or remote hires.
Another important consideration is Colombia’s comprehensive labor laws and mandatory benefits. Employers must contribute to healthcare (EPS), pension, occupational risk insurance (ARL), and severance funds (Cesantías). Employees are also entitled to a 13th-month salary (Prima), paid vacation, sick leave, and maternity/paternity leave. Employment contracts must follow formal guidelines, and termination procedures are strictly regulated under Colombian labor law.
At a glance
CURRENCY
COP
OFFICIAL LANGUAGE
Spanish
PAYROLL FREQUENCY
Monthly
EMPLOYER TAXES
30%
of gross salary
13th / 14th SALARY
N/A
Good to know
Colombia provides universal healthcare coverage through a mandatory public system known as the General System of Social Security in Health (SGSSS). Employers must enroll employees and contribute to the system. Many companies also offer private health insurance (prepagada) to provide faster and more comprehensive services.
The standard full-time workweek is 47 to 48 hours, typically spread across 5 or 6 days. As of recent reforms, workers can agree to flexible or reduced schedules. Overtime is limited and must be paid at higher rates (e.g., 125% for weekday overtime, 175% on Sundays/holidays). Employees are entitled to paid annual leave, rest breaks, and a minimum of one full day of rest per week.
Labor laws in Colombia
Working hours and overtime
In Colombia, the standard working week is 48 hours, typically spread over 6 days, with night work and overtime compensated with additional pay.
With authorization from Colombia’s Ministry of Labor, employees may work up to 12 hours of overtime per week, given they are allowed to rest on Saturday. Overtime worked during daytime hours is compensated at 25% more than the employee’s usual wage per hour. Overtime worked during nighttime hours is compensated at 75% more than the employee’s usual wage per hour.
Employment contracts
In Colombia, an employment agreement or contract is not mandatory by law. However, the following terms are required to be written, if applicable:
- Probation period
- Fixed-term contract
- Integral salary (benefits included in the salary)
- Non-salary payments
If fixed-term employment agreements are not agreed in writing, it is implied that the agreement is for an indefinite term.
Probationary period
The maximum probationary period in Colombia is two months for indefinite-term contracts and one-fifth of the contract’s duration for fixed-term contracts.
Calculate costs to hire internationally
Benefits and leave in Colombia
Annual leave in Colombia
Colombian labor law guarantees employees annual paid leave of 15 days for each year of service, after one year of service. Employees must use at least six annual leave days a year. They can carry over any untaken vacation to the following year, based on an agreement with the company.
Sick leave
The Colombian labor code designates unlimited sick leave based on a medical report confirmation for the number of days prescribed by a doctor. For the first two days of sick leave, employees receive two-thirds of their salary from the employer. Thereafter, the General Health Social Security System (Sistema General de Seguridad Social (SGSS) is responsible for paying the same percentage of the employee’s salary.
Parental leave
Pregnant employees in Colombia are entitled to 18 weeks of paid maternity leave, with a mandatory leave period for the first week prior to the due date. For multiple births, maternity leave is 20 weeks.
The employer directly pays the employee but employers are reimbursed by Colombia’s social security system.
Employees are entitled to 15 days of paternity leave, fully paid by the employer.
The last six weeks of maternity leave can be shared with a partner, under agreement of the employer. This allows employees to share their leave by opting for part-time or remote work arrangements. The part-time leave is paid by the government while the part-time work is paid by the employer.
Holidays
Colombia has 18 public holidays in a calendar year, which are not included in the minimum paid leave entitlement and they are taken in addition to annual leave.
Employer tax
In Colombia, employers typically contribute around 28%–30% of an employee’s gross salary to various mandatory programs, including pension (12%), healthcare (8.5%), occupational risk insurance, family compensation funds, and other social benefits, with exact rates depending on salary and risk classification.
Individual tax
In Colombia, individuals pay progressive income tax ranging from 0% to 39% based on annual income, along with mandatory social security contributions of approximately 8%–10% for health, pension, and solidarity funds, with the exact burden depending on income level and employment type.
Termination in The Colombia
Generally, there are 5 ways to terminate an employee compliantly in Colombia.
- Termination With Cause
- Termination for Redundancy or Other Business Reasons
- Resignation
- Mutual termination
- Termination during the probation period
Notice period
- Termination With Cause: 10 calendar days
- Termination for Redundancy or Other Business Reasons: 10 calendar days
- Resignation: None
- Mutual termination: None
- Termination during the probation period: As stated in Employment Agreement
Start hiring employees in
Colombia
Setting up a business entity in every country where you want to hire isn’t scalable it’s time-consuming, expensive, and legally complex. In Colombia, understanding local labor laws, mandatory benefits, social security contributions, and tax regulations can be challenging. Managing contracts, payroll, and compliance manually through emails and spreadsheets only increases the risk of errors and non-compliance.
With InstaHirin, you can easily manage HR, payroll, and automate compliance in Colombia and 180+ countries all from one user-friendly platform so you can hire quickly and confidently without setting up a local entity.
Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While InstaHirin yster strives to provide current and accurate information, InstaHirin makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.
