Payroll and Benefits Guide Colombia
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
12.00%
|
Pension Fund (applied on salary up to 25 minimum monthly salaries (SMMLV)).
|
|
8.50%
|
Medical Plan (applied on salary above 10 minimum monthly salaries (SMMLV)).
|
|
0.52% – 6.96%
|
Labor Risks (applied on salary up to 25 minimum monthly salaries (SMMLV)).
|
|
4.00%
|
Family Compensation Funds (applied on salary up to 25 minimum monthly salaries (SMMLV)).
|
|
3.00%
|
Family Welfare (ICBF) (applied only on integral salary) (applied on salary up to 25 minimum monthly salaries (SMMLV)).
|
|
2.00%
|
National Apprenticeship Service (SENA) (applied only on integral salary) (applied on salary up to 25 minimum monthly salaries (SMMLV)).
|
| 21.02% – 27.46% |
Total Employment Cost |
| Employee Payroll Contributions | |
|
4.00%
|
Pension Fund (applied on salary up to 25 minimum monthly salaries (SMMLV)).
|
|
1.00%-2.00%
|
Pension Solidarity Fund (employees who earn more than four minimum legal monthly salaries must contribute an additional 1%, to the pension solidarity fund, created by law, employees who earn more than 16 minimum monthly salaries (COP 18,560,000) must contribute an additional percentage (between 0.2% and 1%), depending on the amount of salary received.)
|
|
4.00%
|
Medical Plan
|
| 9.00%-10.00% |
Total Employee Cost |
| Employee Income Tax | |
| Tax Units (1 Tax Unit= 47,065 COP) | |
| 0.0% | 0-1,090 Tax Units |
|
19.0%
|
1,090-1,700 Tax Unit
|
|
28.0%
|
1,700- 4,100 Tax Units
|
|
33.0%
|
4,100- 8,670 Tax Units
|
|
35.0%
|
8,670- 18,970 Tax Units
|
|
37.0%
|
18,970- 31,000 Tax Units
|
| 39.0% | 31,000 Tax Units + |
Employer taxes
Employee taxes
Minimum Wage
General
The monthly minimum wage in Colombia is COP 1,750,905.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
The payroll cycle in Colombia is either bi-monthly, paid on the 15th and last day of each month, or monthly.
13th Salary
Paying a 13th-month salary is mandatory in Colombia. The employer must pay one additional monthly salary split in two payments: the first half paid within the first 15 days of June and the other half paid within the first 20 days of December. These will be pro-rated when a full year has not been worked.
Authority Payments
|
Authority Payment |
Paid To |
Due Date |
|
Social security, private and government entities |
Payments are done by an operator |
Based on the tax number of the employer. But always in the first or 2nd week of the following month |
Working Hours
General
By law in Colombia, the maximum number of working hours is 8 hours per day and 46 hours per week.
Worker’s non-working time must be respected and employers should not contact them after working hours.
Under Law 2101, the maximum weekly working hours will further reduce to 44 hours per week in July 2025, and then down to 42 hours per week in July 2026. This reduction will not negatively affect worker salary, benefits or the value of the daily working hour.
Overtime
- Colombia is currently implementing a gradual reduction in the maximum ordinary work week.
- Maximum Ordinary Hours (Gradual Reduction): The maximum ordinary working hours are being reduced from 48 hours to 42 hours per week by July 2026.
- Current Status (As of Dec 2025): The maximum legal working week is 44 hours (effective July 15, 2025, until July 15, 2026).
- Daily Maximum: The maximum ordinary workday is 8 hours.
- Overtime Cap (CST Article 167A): Overtime (trabajo suplementario) is strictly limited:
- Maximum of 2 hours per day.
- Maximum of 12 hours per week.
- Note: Overtime exceeding these caps is illegal. Employers no longer need prior authorization from the Ministry of Labour to assign overtime but must maintain detailed daily records.
- Overtime Cap (CST Article 167A): Overtime (trabajo suplementario) is strictly limited:
- Exemptions: Employees in positions of management, leadership, or trust (e.g., directors, managers) are typically excluded from the statutory working hours and overtime limitations.
Mandatory Overtime and Surcharge Rates
Overtime is calculated based on the employee’s ordinary hourly rate and is subject to mandatory surcharges (recargos). Night work is defined as work performed between 7:00 PM and 6:00 AM (expanded from 9:00 PM by recent reform).
| Day/Condition | Surcharge Rate (Statutory Minimum) | Total Pay Rate | Notes |
| Day Overtime (Extra Diurno) | +25% of the regular hourly rate. | 125% | Applies to overtime worked between 6:00 AM and 7:00 PM. |
| Night Overtime (Extra Nocturno) | +75% of the regular hourly rate. | 175% | Applies to overtime worked between 7:00 PM and 6:00 AM. |
| Night Surcharge (Non-Overtime) | +35% of the regular hourly rate. | 135% | Applies to ordinary hours worked between 7:00 PM and 6:00 AM (e.g., a scheduled night shift). This is cumulative with any overtime premium. |
| Sunday or Holiday Work (Surcharge) | Gradual Increase (Effective July 2025 onwards) | Varies | For hours worked on a mandatory rest day (Sunday or public holiday), the surcharge is increasing gradually: 80% (from July 2025), 90% (from July 2026), and 100% (from July 2027). |
Note on Sunday/Holiday Pay: Work on a Sunday or public holiday is remunerated with the ordinary wage for the hours worked plus the legal surcharge (currently 80% to 100%, depending on the date) on the ordinary salary.13 The employee is also generally entitled to a compensatory rest day.
Leave
Annual Leave (vacation)
Paid leave in Colombia is outlined in the employment contract as a minimum of 15 days paid leave a year, following completion of 1-year service. This is in addition to any public holidays.
PTO Carryover
- For Papaya Direct, employees can carry over for 4 years until they reach a max 36 days, The EE can only accumulate 9 days per period since it’s required to take 6 PTO days per year (The EE requests them and they depend on the ER’s authorization; the process is by mutual agreement).
- For SGF Global, there is no carryover.
Public Holidays
In accordance with the Emiliani Law, there are a number of public holidays that the law established that if they do not fall on a Monday they will be moved to the following Monday. Public holidays that fall on a Saturday are usually lost.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 12 January 2026 | Monday | Epiphany | Standard holiday |
| 23 March 2026 | Monday | Saint Joseph’s Day | Standard holiday |
| 2 April 2026 | Thursday | Maundy Thursday | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 18 May 2026 | Monday | Ascension Day | Standard holiday |
| 8 June 2026 | Monday | Corpus Christi | Standard holiday |
| 15 June 2026 | Monday | Sacred Heart | Standard holiday |
| 29 June 2026 | Monday | Feast of Saints Peter and Paul | Standard holiday |
| 20 July 2026 | Monday | Independence Day | Standard holiday |
| 7 August 2026 | Friday | Battle of Boyacá Day | Standard holiday |
| 17 August 2026 | Monday | Assumption of Mary | Standard holiday |
| 12 October 2026 | Monday | Columbus Day | Standard holiday |
| 2 November 2026 | Monday | All Saints’ Day | Standard holiday |
| 16 November 2026 | Monday | Independence of Cartagena | Standard holiday |
| 8 December 2026 | Tuesday | Immaculate Conception | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
For the first 2 days of sick leave, employees are entitled to be paid full salary by their employer. From day 3 to 90 of sick leave, payment is made by the Social Security system at a rate of 66.67% of the workers salary. From day 91 to 180 of sick leave, payment is made by the Social Security system at a rate of 50% of the workers salary.
The the law requires that the employer makes the sickness payments for the 180 days period, which they can then request a reimbursement from the Social Security system.
A medical authorization from the Colombian Social Security system must be obtained for the employee to be eligible for paid sick leave.
Maternity Leave
Employees are entitled to 18 weeks of paid maternity leave.
The payment of maternity leave it is done based on the declaration at the moment of the start (of the leave), reported on the first day of the leave by the employer to the social security.
Employees with integral salary, are entitled to 70% of the salary, while employees under ordinary salary set up are entitled to is 100%, of their wage. therefore, the maternity pay paid during the leave is the one that fits the declaration.
The employer pays this and is then fully reimbursed by social security.
Paternity Leave
Employees are entitled to two weeks (14 calendar days) of paid paternity leave at 100% of their regular salary rate. The employer pays this and is then fully reimbursed by Social Security (EPS).
Parental Leave
There is no additional parental leave in Colombia.
Other Leave
- Bereavement Leave: In the event of the death of an immediate family member, an employee is entitled to up to 5 days’ leave in Colombia.
- Marriage Leave: Employees are also entitled to 5 days’ leave in the event of their marriage.
- Voting Leave: Employees are entitled to half a day of paid leave to vote in elections.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
The termination process is standard in Colombia and is based on labor law requirements unless an employer can provide sufficient cause for dismissal without notice (due to misconduct, etc.).
To terminate an employee with just cause, the company must document everything, including all training provided, significant mistakes made by the employee, the support given before initiating the Performance Improvement Plan (PIP), and detailed records of everything during the PIP, including calls, training, and feedback given to the employee.
If the employee is terminated after the PIP period, it will be considered in any case as a termination without just cause and will still require severance pay. Therefore, if the outcome is the same, the employer could terminate the employee at any time.
Notice of termination must be in writing and sent to the relevant governmental authorities.
The employer must make payment to leavers on their last day at work.
These final settlement payments must include amounts for accrued but unused statutory vacation days (15 working days per year of service. Additionally, payment must be made for any owed commissions and bonuses. If these are regular, performance-based and part of the employee’s compensation package, the Colombian courts may treat them as part of the salary base for severance, vacation and bonus calculations. The final entitlements may include:
- Pro-rated commissions/bonuses if tied to completed work or objectives
- Full or partial payments if agreed upon contractually or proven to be customary
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Salaries are typically paid monthly or bi-monthly (e.g., on the 15th and last working day of the month) in many companies. | When employment ends, the employer must pay all outstanding wages, unused vacation, social benefits and if termination is without just cause, severance in accordance with law. | The law states wages may be paid in cash, in kind (limited to 30 % max), or by bank transfer. |
Notice Period
For Employees under fixed employment contracts, employers must notify employees at least 30 days before the contract’s expiration if they do not intend to renew it, otherwise it will be automatically renewed for the same
period of time. For indefinite contracts, no notice period is required, though it is common to give 15 days. Though notice is not legally required during the probation period, providing a courtesy notice (e.g., 1-2 weeks) common by both parties.
Severance Pay
In Colombia, severance pay is mandatory if applicable and determined by the employee’s length of service and the rate of earnings.
If the employee earns less than 10x the minimum monthly wage, the severance payment entitlement is 30 days for the first year of employment, plus 20 days for each additional year of service.
If the employee earns more than 10x the minimum monthly wage, the severance payment entitlement is 20 days for the first year of employment, plus 15 days for each additional year of service.
Severance is not paid when the employee resigns voluntarily. Compensation is only paid when the employer dismisses the employee without just cause.
Probation Period
The probation period in Colombia is optional. It is recommended to set a probation period of 1/5 of the contract duration up to 2 months. For permanent employees, it is generally two months.
Minimal Statutory Termination Costs
Notice Period is only for fixed term contracts: 30 days notice
After the 2 month probation period severance is mandatory in Colombia if a worker is terminated without just cause.Employers must pay statutory severance (“indemnización”) for a termination without cause, which differs based on contract type:
Indefinite contracts
Requires 30 days’ salary (first year) + 20 days (subsequent years)
Fixed-term contracts require payment for the remaining term
For Integral Salary Contracts:
Before completing the first year of employment: 20 days of salary
From the second year onward: 15 days of salary or proportional
Example: If a worker’s employment is 2 years and 3 months:
20 + 15 + (15/12*3) = 39 days of severance
For Basic Salary:
Before completing the first year of employment: 30 days of salary
From the second year onward: 20 days
Example: If a worker’s employment is 2 years and 3 months:
30 + 10 + (10/12*3) = 42.5 days of severance
For Obra Labor contracts: No severance, no notice period
Disclaimer: In all cases, in Colombia, there is a two-month probation period. If the employment is terminated during this time, no severance is paid.
Common Benefits
- Private health care insurance
- Additional vacation days
- Internet allowance – approx. 80 USD per month
- Mobile phone allowance – approx. 100 USD per month
- Meal vouchers/allowance – 20 USD per day (per CBA)
- Fitness/Wellness allowance – between 400 -450 USD Per Year
Immigration
Any foreigners coming to work in Colombia will need to have a job offer from a local employer before applying for a visa. There are several visa types, but the most commonly used is the M visa which is valid for five years. These visas are issued in person at the Ministerio de Relaciones Exteriores’ offices in Bogota.
Every foreigner with a visa valid for more than three months needs to apply and obtain a foreigner’s identity card at a regional office. This must be obtained within 15 days of entering Colombia or 15 days after the visa was issued.
Once five years have been completed, foreign nationals can apply for an R visa; then, once an individual has held an R visa for five more years, they can become a Colombian citizen.
Remote Work
Work From Home
Employers are required to respond within 5 days to employees’ written working from home requests. Employees may carry out their work overseas if permission is given by their employer. Teleworkers’ employment agreements must include a description and any restrictions and responsibilities regarding equipment and software, the mode of teleworking, the required working hours, the location of teleworking, reimbursement of expenses, ergonomics and technology, among others.
It is possible for the employer and the teleworkers to expressly agree in the employment contracts or amendments on the reversibility of teleworking at any moment.
Employers are required to reimburse employees for teleworking-related expenses which are not normally incurred by employees. Employers and employees may agree a monthly allowance to compensate internet, telephone, and energy costs.
In Colombia, a home working allowance is not universally mandatory. Specific regulations apply based on salary and work arrangement:
- Connectivity Allowance: Employees earning up to twice the legal minimum wage are entitled to an allowance for internet and telecommunications expenses.
For higher earners, there is no legal obligation for such allowances, but they can be agreed upon in employment contracts or company policies.
Employers should perform medical examinations for their remote employees when they are hired and on a periodic basis. Remote workers who are caring for minors under age 14, individuals with disabilities or adults over age 60 are allowed to organize their work schedule around their caregiver duty.
All workers have the right to disconnect and avoid any work-related contact outside their working hours and statutory or contractual leaves.
Remote Work
Remote work can be agreed upon voluntarily by the employer and employee, whereby an employee may conduct their services from any place within the country. The entire labor relationship, from its beginning to its termination, may be conducted without any face-to-face meetings at a designated workplace.
All workers have the right to disconnect and avoid any work-related contact outside their working hours and statutory or contractual leaves.
VAT
General
The standard rate of VAT in Colombia is 19.00%.
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Payroll and Benefits Guide
in Colombia
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 12 January 2026 | Monday | Epiphany | Standard holiday |
| 23 March 2026 | Monday | Saint Joseph’s Day | Standard holiday |
| 2 April 2026 | Thursday | Maundy Thursday | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 18 May 2026 | Monday | Ascension Day | Standard holiday |
| 8 June 2026 | Monday | Corpus Christi | Standard holiday |
| 15 June 2026 | Monday | Sacred Heart | Standard holiday |
| 29 June 2026 | Monday | Feast of Saints Peter and Paul | Standard holiday |
| 20 July 2026 | Monday | Independence Day | Standard holiday |
| 7 August 2026 | Friday | Battle of Boyacá Day | Standard holiday |
| 17 August 2026 | Monday | Assumption of Mary | Standard holiday |
| 12 October 2026 | Monday | Columbus Day | Standard holiday |
| 2 November 2026 | Monday | All Saints’ Day | Standard holiday |
| 16 November 2026 | Monday | Independence of Cartagena | Standard holiday |
| 8 December 2026 | Tuesday | Immaculate Conception | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
What constitutes as night and daytime hours for the sake of calculating overtime pay?
Daytime hours are considered from 6 am to 9 pm and nighttime hours are considered 9 pm to 6 am.