Overview

Capital
Bogotá
Currency
Peso
Date Format
dd−mm−yyyy

calendar icon Public holidays calendar

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 gross monthly wage in Colombia is $877,803.00 COP.  In addition to this, there is a monthly transportation subsidy of $102,854.00.  

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.

Payment

Payroll Frequency

Payroll cycle is bi-monthly or monthly. 

VAT

General

19% standard rate

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.

13th Salary

There is also a mandatory 13th and 14th salary (each amounting half a month’s salary) that are paid out in June and December. 

Termination

Termination Process

In Colombia, it is possible for the employee or employer to terminate an employment contract with immediate effect and without notice.  Termination must be communicated in writing to either party. 

  • If the termination is initiated by the employer, it is not mandatory for the employer to give a reason for termination unless there is an allegation of an unfair cause.   
  • For pregnant or disabled employees- the employer must get special permission to terminate the employee.      
  • For unionized employees- the employer must get permission from a labor judge in order to terminate an employee.
  • If the employee terminates the employment contract due to a breach by the employer, they are entitled to severance payment. 

 

Advance Notice

Notice periods in Colombia are only necessary for fixed term contracts, it is not mandatory to give advance notice for indefinite employment contracts. 

Severance Pay

For the first year of employment, 30 days of wages are paid as severance to the employee and 20 additional days for every additional year employed. 

Payroll

Pay Date

Pay date is either on the 15th or 30th of the month, depending if the payroll cycle is bi-monthly or monthly.

Working Hours

A full-time work week in Colombia is 48 hours.

Overtime Payment

Overtime is paid at the rate of 150% of the regular pay.