Colombia

Employment

Written employment contracts are generally favored as the law generally tends to side with employees. Services under employment agreement is the most common type of employment contracts used in Colombia. There is also employment contracts available through Temporary Employment Agencies.

Payroll

The payroll frequency and paydays are decided between the employer and employee.

HR & Labor

Full time employment is 48 hours. An employee can work maximum of 12 hours overtime. If the overtime is during daytime hours, they receive 125% of regular wages.
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If the overtime is during nighttime, they get 175% of regular wages. If employee works night shifts, they receive 135% of regular daytime wages. If employee works on a holiday, they receive 150% of regular wage.

Immigration

TP-4 Visa issues to foreign nationals who are looking to work in Colombia. It is for 3 years and can be extended for another 2 years afterwards.

Benefits

Employees are entitled to a Semestral Bonus (prima de servicios): two bonuses during the year, each equal to 15 days salary. The first to be paid on the last day of June, and the second to be paid on December 20th.

Minimum Wage

The minimum wage is COP644 per month.

Pension Fund

The employer contributes 14%.

The employee contributes 4%. If the employee’s salary exceeds the minimum wage between 4 to 15 times, they must contribute additional 1% to the pension fund.

Severance Payments

If it’s a fixed contract employee, the employer is responsible for the salary amount remaining until end of the contract. If it’s an ongoing contract, employees receive their severance payments based on how much they make. If an employee’s salary is 10 times the minimum legal wage, they receive 30 days of regular salary if they have worked in the company for a year. For any additional years, they receive 20 days of regular salary. If the employee makes equal to ten times the minimum legal wage, they will receive 20 days of regular salary. Additional 15 days of regular salary per each year they worked in the company.

Advance Notice

The advance notice must be 30 days.

Termination Procedure

The employer must provide the employee with 15 days notice.

Sick Days

The first two days of absence, the employer pays 66.67% of the regular wage, from 3rd day on, the compensation is paid by General Health Social Security System.

Vacation Days

Employees are entitled to 15 vacation days.

Public Holidays

There are 18 public holidays.

If employee works on a holiday, they receive 150% of regular wage.

Additional Employee Withholdings

1) Medical Benefits

1) Employer contributes 8.5%.

1) Employee contributes 4%.

VAT

VAT is 16% standard rate.