How to Hire Employees in Colombia Using an Employer of Record in 2025

Hiring employees in Colombia unlocks a vibrant, technically skilled workforce, lower salary benchmarks than the U.S., and strategic time-zone overlap with North America. However, every hire triggers mandatory pension auto-enrolment, employer social-security costs, and detailed rules on working hours, probation, annual leave, notice periods, and the legally required 13th-month pay. For foreign companies, missteps can lead to back-tax bills, labor court claims, and brand damage.

Using an Employer of Record (EOR) in Colombia flips that script. The EOR becomes the legal employer, manages compliance, and runs Colombian payroll while you direct day-to-day work. Deel’s Colombia-owned local entity adds real-time compliance alerts, AI-powered cost forecasting, and a single invoice in USD. The result: you can hire employees in Colombia in days, without lawyers, costly incorporations, or compliance headaches.

What is a Colombian Employer of Record?

A Colombian Employer of Record is a locally registered company that hires workers on your behalf. Legally, an EOR:

1. Signs the employment contract under its own local entity
2. Registers each hire with pension, health insurance (EPS), labor-risk, and family-compensation systems
3. Calculates, withholds, and remits all legally required income tax and social security
4. Maintains required labor files and workplace-safety registers
5. Issues payslips, 13th-month (prima) instalments, severance, and handles annual leave entitlements

Operationally, you still manage the employee’s tasks, KPIs, and company culture. The EOR simply absorbs all statutory employer obligations, so if the Dirección de Impuestos y Aduanas Nacionales (DIAN) audits or a labor inspector arrives, liability sits with the EOR, not you.

Deel’s wholly-owned Colombian entity combines this legal protection with a modern platform: one-click background checks and a Compliance Hub that flags if a fixed-term contract or probation period exceeds legal limits.

Top reasons to use an EOR service in Colombia

Colombia offers huge upside, but its employment landscape is complex. Working with an Employer of Record in Colombia removes the friction and risk.

• All-inclusive statutory costs: Social security, SENA/ICBF, and labor-risk insurance can total 28.5% of salary. An EOR pre-calculates and remits each peso.
• Speed to hire: Entity incorporation and bank-account opening average 16–28 weeks; Deel onboards your team in under 5 working days.
• Lower legal risk: Courts in Colombia regularly re-characterize contractors as employees, issuing back-pay orders. An EOR employs directly, eliminating misclassification exposure.
• Probation and notice period compliance: The Labor Code caps probation at two months for indefinite contracts and up to the length of fixed term contracts. Deel contract templates enforce these rules automatically.
• Single currency invoice: Avoid FX spreads and multi-agency filings—pay one invoice in your home currency.
• Real-time compensation insights: Deel Compensation benchmarks Colombian salaries by city, role, and sector, helping you offer competitive packages without overspend.

How to hire employees in Colombia: Step-by-step guide

Follow this eight-step checklist to turn a headcount request into a compliant Colombian hire using EOR services.

1. Choose an EOR with a wholly-owned local entity in Colombia

Start by confirming the EOR owns (not leases) its Colombian local entity. Direct ownership ensures the provider—not an undisclosed local partner—faces DIAN and UGPP audits.

Tip: Verify entity ownership through public registry information.

2. Book a demo and verify social proof

Schedule a platform walk-through to understand how the EOR manages Colombian payroll, health insurance, and statutory benefits. Ask how the EOR handled past UGPP investigations or labor audits. Check case studies and client testimonials for EOR services in Colombia. Scan reviews on G2 and Trustpilot, where Deel EOR holds a 4.8/5 average.

3. Request a transparent EOR quote
Colombian cost structures can be opaque. Obtain a detailed quote including gross salary, statutory social costs, income tax withholding, and the EOR’s flat fee. Deel’s transparent pricing avoids hidden markups on benefits or filings.

Tip: Compare costs before you expand—read our article EOR vs. Entity Costs: What’s More Affordable?

4. Submit a 12–24-Month hiring plan

Provide your projected headcount and locations so the EOR can optimize payroll taxes, social contributions, and deadlines. This helps budget for statutory paid leave, sick pay, and parental leave entitlements.

Tip: Update your plan quarterly to reflect hiring or regulatory changes.

5. Create the employment contract in the platform

Use the EOR’s contract generator to draft agreements compliant with German probation rules (up to six months) and notice periods. Deel’s templates auto-populate salary, employee benefits, and data protection clauses.

Tip: Customize probation durations within legal limits for flexibility.

6. Confirm the candidate’s right to work

For Colombians, upload the cédula scan. Deel Immigration supports visa and work permit applications to speed up onboarding.

Tip: Store digital copies of work authorizations in the platform for audit readiness.

7. Run the onboarding workflow

With Deel EOR, every onboarding is adapted to local labor laws, supported by a dedicated onboarding manager. Within the platform, new hires can seamlessly verify identities and work-permit status, complete compliance documents and payroll information, and review and sign employment agreements.

Tip: Automate reminders for benefit opt-in deadlines to maximize employee satisfaction.

8. Maintain ongoing compliance

Leverage real-time alerts for changes in Colombian labor laws, payroll tax updates, and social security rates. Deel Compliance Hub tracks filings and flags discrepancies before they become issues.

Tip: Schedule monthly reviews with your EOR account manager to stay ahead of regulatory shifts.

Employment compliance tasks an Employer of Record manages in Colombia

Below is an overview of what a Colombian EOR like Deel will handle for you in 2025:

How much does it cost to hire through an EOR in Colombia?

The cost of an EOR generally covers the employees’ gross salary, mandatory employer costs (pension, health insurance, PTO, etc.), and the EOR management fee. Deel’s flat fee covers compliance monitoring, payroll runs, and access to our global platform, with no hidden markups.

Which Colombia EOR Should You Choose?

When shortlisting EOR providers for hiring employees in Colombia, stress-test these four criteria:

1. Entity ownership: Prefer providers with a wholly owned Colombian local entity—no opaque third parties
2. Compliance expertise: Look for in-house labor lawyers, a local payroll team, and a proven record of UGPP and DIAN audits passed without fines
3. Platform breadth: Beyond payroll, can it handle background checks, equipment logistics, fixed-term contracts, and equity grants? With Deel, you gain an all-in-one platform that covers all of that and more.
4. Global coverage: If Colombia is only the first stop, you need an EOR that scales to 150+ countries. Deel’s global network means one contract, many markets.

Is Deel Employer of Record a Strong Choice for Hiring in Colombia?

Deel is a top-rated Employer of Record (EOR) for hiring employees in Colombia, offering unmatched local expertise and compliance assurance. Deel’s wholly owned Colombian local entity eliminates the pain and delay of setting up your own company, while its platform automates every requirement from employment contracts to payroll, health insurance, and statutory benefits.

• G2 leader: Rated best EOR globally for user satisfaction and market presence.
• Wholly-owned entity in Colombia: Deel owns and operates its local entity, not a third-party partner.
• 150+ countries: Hire and pay employees or contractors almost anywhere with one platform.
• Fast onboarding: Hire employees in Colombia in as little as 5 working days—no bank accounts or local admin needed.
• Transparent pricing: No hidden markups; see all costs upfront, including mandatory employer contributions and annual leave.
• Local compliance: Deel manages required pension, health insurance, SENA/ICBF, and labor-risk registrations.
• Automated contract templates: Localized for Colombian law—probation, overtime, 13th-month pay, and more.
• Deel Compliance Hub: Real-time alerts keep you compliant with changing Colombian rules.
• Data-driven compensation: Benchmark salaries by city and role for competitive offers.

With Deel, you access Colombia’s talent pool without the headaches of local incorporation, compliance risk, or payroll complexity—so you can focus on growing your team and business.

See how Revolut streamlined employee relocation with Deel EOR and Deel Immigration

Hire Employees in Colombia Confidently with Deel Employer of Record

Ready to tap into Colombia’s skilled workforce without months of legal setup or compliance worries? Deel’s EOR service lets you hire, pay, and manage employees in Colombia in days, not weeks, while our transparent pricing means you’ll never face surprise fees or hidden costs.

Book a demo to see how Deel removes the pain of local entity setup, simplifies tax, health insurance, annual leave, and payroll, and keeps you fully compliant with Colombian law. Get started faster, stay protected, and scale your team globally.