Hire and pay employees in Colombia, hassle-free
With Deel, your business can easily hire employees in Colombia. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries. The average onboarding time frame in the Colombia is 5 days with Deel.
Onboard, pay and manage employees in Colombia with Deel
Usually, to hire in Colombia, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Now you can hire employees in Colombia quickly, easily, and compliantly. Automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
Currency COP
Capital Bogotá
Official language Spanish
Payroll cycle Monthly
All the necessary benefits for Colombia built right in
Deel allows you to provide localized benefits for employees in Colombia within minutes. All in one manageable online dashboard in a single HR platform.
- Pension Fund
- Social Security
- Unemployment Insurance
- Workers Compensation Insurance
- Private Healthcare - Unisure (optional)
- Private Healthcare - AXA Colpatria (optional)
- Private Healthcare - Allianz (optional)
Our quickstart guide to hiring in Colombia
Navigate the tabs below to learn everything you need to know about hiring an employee in Colombia
Minimum Wage Requirements
The minimum wage is COP 1,423,500, and the Integral Minimum Salary is COP 18,505,500.
Individual Income Tax
The individual income tax ranges from 0% to 39%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.
| Gross Annual Income | Tax Rate (%) |
|---|---|
| Up to COP 38,812,000 | 0% |
| Up to COP 60,532,000 | 19% |
| Up to COP 145,989,000 | 28% |
| Up to COP 308,713,000 | 33% |
| Up to COP 675,465,000 | 35% |
| Up to COP 1,103,817,000 | 37% |
| Over COP 1,103,817,000 | 39% |
Payroll Cost
The calculation of employer costs for social security varies based on the type of salary the employee receives. For employees with ordinary salaries, the social security costs are calculated on 100% of the employee's salary, up to a maximum basis of COP 32,500,000 for 2024.For employees with integral salaries, social security costs are calculated on 70% of their salary, up to the same maximum basis.
Please note: EOR employees in Colombia are entitled to a minimum of 15 days of paid vacation a year. These 15 days of paid vacation are equal to 4.17% of the employee's gross annual salary.
Monthly Costs
- Pension fund - 12%
- Labor Risk - 0.52%-6.96% based on the employee's job title and risk level
- Family fund management (CCF) - 4%
- Social Security, Public Health - 8.5%
- Family Fund "ICBF” - 3%
- Training funds "SENA” - 2%
- Law Quote 2023 "SENA" - COP 34,615
- Work From Home Allowance - USD 32
Annual and Bi-annual Costs for Employees on Ordinary Salaries
- Legal Service Bonus (13th Month Salary)* - 1 month salary
- Severance Fund Contribution (14th Month Salary) - 1 month salary
- Interest on Severance Fund Contribution - 12% of the 14th Month Salary
*Paid 50% in June and 50% in December
Conditional Costs
- Legal Connectivity Allowance - COP 140,606 prorated based on days worked, only for employees with salaries under 2 minimum legal wages
Overtime Pay & Maximum Hours
Overtime payment is mandatory for employees earning below COP 13,000,000 per month. Hours outside of standard work hours are considered overtime. For additional hours, employees are paid an additional:
- 25% of the hourly rate on a standard workweek
- 75% of the hourly rate for night shifts, Sundays, and holidays
- 150% of the hourly rate for night shifts on Sundays and holidays
Employees who are entitled to overtime pay can work a maximum of two hours of overtime per day and a maximum of 48 total hours per week.
Standard working hours are eight hours per day, 40 hours per week. The standard workweek is from Monday to Friday. As per Law 2101 of 2021, the maximum weekly working hours for employees in Colombia must be progressively reduced from 48 to 42 hours in the next few years.
This change does not affect employees’ salaries and benefits.
The maximum weekly working hours will be reduced every year on July 15 from 2023 to 2026:
- 2023: From 48 to 47 hours.
- 2024: From 47 to 46 hours.
- 2025: From 46 to 44 hours.
- 2026: From 44 to 42 hours.
The reduction in the maximum weekly working hours will stop on July 15, 2026.
Download the complete guide to hiring in Colombia
Hiring in Colombia, hassle-free
With Deel, your business can easily hire employees in Colombia with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Colombia and 150+ countries.
Management fee
Starting at
$599
/month
Estimated Employer Cost
31-51%
of employee salary