Overview

Capital
Bogotá
Currency
Peso
Date Format
dd−mm−yyyy

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Taxes

Employer
12.00% - Pension Fund
8.50% - Medical Plan
9.00% - Family Welfare Fund
Employee
4.00% - Pension Fund
4.00% - Medical Plan
0.00% - Up to 36,140,040
5.05% - 36,140,040 - 56,365,200
9.15% - 56,365,200 - 135,939,600
11.16% - Over 135,939,600

Minimum Wage

General
The minimum wage is COP781,242 ($273.59) monthly.

Working Hours

General
Full time employment is considered 48 hours weekly, and 8 hours daily. Hours in one day cannot exceed 10.
Overtime
Maximum overtime in one week is 12 hours.

VAT

General
19% standard rate

Payment

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

Mandatory Benefits

Pension Fund
The employer contributes 12%. 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.
Social Security
Employers contribute 29.5% of workers wages, and employees contribute 8% of salary. Contributions are towards funds for pension, medical plan, and family welfare fund.

Termination

Termination Process
Employers must provide the employee with 15 days notice.
Advance Notice
The advance notice must be 30 days.
Severance Pay
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.