Article
4 min read
Employer Costs for an Employee in Colombia (2026 Guide)
Employer of record
Author
Jemima Owen-Jones
Last Update
February 04, 2026
Quick answer: What is the total employer cost for a $100,000 salary in Colombia?
For an employee earning $100,000 USD annually in Colombia, employers can expect mandatory employer costs of approximately $220,455 USD per year, bringing total compensation costs to $320,455 USD.
Estimated total employer cost (Colombia): ~220.5% on top of gross salary (example estimate).
Hiring in Colombia can be a great way to access skilled talent—whether you’re expanding into Latin America, building a remote team, or hiring your ideal candidate locally.
But even when two employees earn the same salary, the total employer cost varies by country due to statutory contributions, payroll rules, and mandatory benefits.
This guide provides a ballpark estimate of the mandatory employer cost of hiring an employee in Colombia, using an example salary of $100,000 USD per year.
What’s included in this estimate?
This estimate includes mandatory employer-side statutory costs that may apply when hiring an employee in Colombia, such as:
- Labor risk insurance
- Pension fund contributions
- Health social security contributions
- Family compensation fund contributions (CCF)
- Family welfare institute contributions (ICBF)
- Training fund contributions (SENA)
- Work-from-home allowance (where applicable in this estimate)
- Health and safety program costs (where applicable in this estimate)
- 13th salary and 14th salary (where applicable in this estimate)
What’s not included in this estimate?
This estimate generally does not include additional costs such as:
- Paid annual leave (vacation)
- Sick pay beyond statutory/insured coverage
- Private health insurance (if offered as an additional benefit)
- Employer-provided benefits or allowances beyond those listed
- Bonuses, equity, or commissions outside statutory requirements
- Equipment and onboarding expenses
- Costs that vary by employee role, industry, or location
Why employer costs vary in Colombia (and globally)
Employer costs can differ depending on:
- Income thresholds and contribution rules
- Whether additional bonuses apply (such as extra salary payments)
- Industry-specific risk classifications (which may affect labor risk costs)
- Required training and welfare contributions
- Changes in regulation year to year
- Currency exchange rate fluctuations (if you pay in a different base currency)
Estimated employer cost breakdown for Colombia
Below is an estimated breakdown of mandatory employer costs for hiring an employee in Colombia earning $100,000 USD/year.
Example salary used in this estimate
- Annual gross salary: $100,000 USD
- Annual gross salary (approx.): Col$435,005,000 COP
Employer mandatory costs (estimated)
| Employer Cost Category | Estimated Annual Cost (COP) | Estimated Annual Cost (USD) | Notes |
|---|---|---|---|
| Labor Risk | Col$1,425,060 | $328 | Mandatory insurance for disability risk |
| Pension Fund | Col$32,760,000 | $7,531 | Retirement pension contribution |
| Work From Home Allowance | Col$1,502,400 | $345 | Remote work allowance (where applicable) |
| Family Fund Management (CCF) | Col$10,920,000 | $2,510 | Family compensation fund contribution |
| Law Quote (“SENA”) | Col$938,712 | $216 | Statutory contribution |
| Health Safety (SGSST Program) | Col$328,548 | $75 | Health and safety compliance program |
| Health (“Social Security”) | Col$25,882,797 | $5,950 | Health coverage contribution |
| Family Fund (ICBF) | Col$9,135,105 | $2,100 | Family welfare institute contribution |
| Training Funds (SENA) | Col$6,090,070 | $1,400 | Training fund contribution |
| 13th salary | Col$100,000 | $100,000 | Additional salary payment (where applicable) |
| 14th salary | Col$100,000 | $100,000 | Additional salary payment (where applicable) |
| Total Estimated Employer Costs | Col$89,182,692 | $220,455 | Total mandatory employer cost estimate |
Total compensation cost (salary + mandatory employer costs)
| Total | COP | USD |
|---|---|---|
| Gross Salary | Col$435,005,000 | $100,000 |
| Mandatory Employer Costs | Col$89,182,692 | $220,455 |
| Total Compensation Cost | Col$524,187,692 | $320,455 |
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FAQs
What should employment contracts include in Colombia?
Strong employment contracts in Colombia typically define the employee’s role, monthly salary, working schedule, benefits, probation terms, and termination conditions. Clear contracts help employers stay compliant and avoid disputes.
Are fixed term contracts allowed in Colombia?
Yes. Fixed term contracts are commonly used in Colombia, but they must follow local rules around duration, renewals, and termination. Contract type can affect workforce planning and how long-term employment costs are managed.
How does monthly salary work for full time employees in Colombia?
Most full time employees in Colombia are paid a monthly salary. Employers should budget beyond the monthly base amount because mandatory contributions (pension, health, and welfare funds) increase the total employer cost.
How many working days are there in Colombia?
Working days typically refer to the standard business days in a week, but the exact schedule depends on the employment contract and the employer’s operating model. Working time rules can affect overtime planning and total payroll cost.
How many days of paid leave do employees get in Colombia?
Employees are entitled to days of paid leave under local employment rules, and leave entitlements can increase with time worked. Employers should account for paid leave as part of total compensation planning.
Does the minimum wage affect employer costs in Colombia?
Yes. Colombia has a statutory minimum wage, which employers must meet as a legal baseline. Minimum wage levels can affect hiring budgets, especially for entry-level roles, and also influence contribution calculations.
Do benefits increase with year of service in Colombia?
In many employment structures, benefits and entitlements can increase with an employee’s year of service, which can raise long-term employment costs. This is important for workforce planning and retention budgeting.
Do night shift schedules change employer costs in Colombia?
Yes. A night shift schedule can affect payroll costs due to different pay rules, shift premiums, or working time requirements. Employers should reflect shift patterns clearly in employment contracts to avoid compliance issues.
Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.
