* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Colombian Peso ($)


CST (GMT -5)

Employment Cost

0% - 39%

Annual Leave

15 days

In-demand Specialties*
It And Software Development, Agriculture And Agribusiness Services, Petroleum Engineering, Mining And Renewable Energy

The Ultimate Guide to Hiring Employees in Colombia

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Colombia

Employing in Colombia requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Colombia with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Colombia quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Colombia has a well-educated and skilled workforce, particularly in fields like technology, customer service, and marketing. By hiring remote workers in Colombia, you can tap into this talent pool and find individuals with the skills and expertise you need.

Labor costs in Colombia are often lower than in many Western countries, which can result in cost savings for your business. You can hire highly qualified professionals at a competitive rate.

Colombia shares time zones with many North American countries, making it easier to coordinate work and communication between your remote team and your main office.

Colombian remote workers often have a good understanding of Western culture and business practices, making it easier to integrate them into your team and align them with your company's values and goals.


Fundamental Aspects of Employment in Colombia

In Colombia, it's advisable to create a written employment contract when hiring a new employee. Colombian labor law distinguishes between permanent and fixed-term contracts, with the latter needing written documentation and a maximum duration of three years. The contract should include details such as job description, salary, benefits, total holidays, and any probationary period.

Probationary Period in Colombia

Probationary periods are optional but should not exceed 60 days from the date of employment.

Working hours in Colombia

Employees are typically expected to work up to 48 hours in a standard week, which is equivalent to eight hours per day in a six-day workweek. They are entitled to one day off each week, usually on Sunday, but they can choose an alternate day off if specified in their employment contract, providing flexibility.

Overtime in Colombia

Overtime work should not exceed two hours per day or a total of twelve hours per week. Compensation for overtime must be at a minimum rate of 125% for daytime work and 175% for work during nighttime or on public holidays.

Navigating Key Aspects of Payroll in Colombia

Colombia has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Colombia

1 January - 31 December is the 12-month accounting period that businesses in Colombia use for financial and tax reporting purposes.

Payroll Cycle in Colombia

The payroll cycle in Colombia is usually monthly, with employees being paid by the last working day of the month.
29,000 COP p/h

Minimum Wage in Colombia

The minimum wage for employees in Colombia is typically 29,000 COP per hour, amounting to ~1,160,000 COP per month for a typical 40 - 48 hour work week.

Minimum wages and salaries in Colombia

The minimum wage in Colombia is 29,000 COP an hour.

Bonus Payments in Colombia

In Colombia, employees are legally entitled to a 13th-month salary.

Comprehensive Overview of Employment Taxes in Colombia

Understanding the tax obligations for both employers and employees is crucial when operating in Colombia's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Colombia.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 0% - 39% on top of the employee salary in Colombia.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Colombia, the typical estimation for employee payroll contributions cost is around 9%-10%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

In Colombia, employee income is taxed in "units.” One tax unit is equal to 35,607 COP.

Tax Rate Income Bracket

Pension in Colombia

Colombian workers and their employers are required to make regular contributions to the pension system. These contributions are deducted from employees' salaries and matched by their employers. The pension benefits in Colombia are calculated based on the average salary and the number of weeks or months of contributions. The formula takes into account the individual's average earnings over their career and the number of weeks or months contributed. The more one contributes and the higher their average salary, the larger their pension benefits will be.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Colombia tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Colombia

When it comes to terminating employment in Colombia, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Colombia, termination procedures typically adhere to labour laws, unless there are valid reasons for immediate dismissal. Written notice of termination is required and must be sent to the relevant government authorities. Any outstanding payments to departing employees should be settled on their last workday. In Colombia, termination procedures typically adhere to labor laws, unless there are valid reasons for immediate dismissal, like gross misconduct. Written notice of termination is required and must be sent to the relevant government authorities. Any outstanding payments to departing employees should be settled on their last workday. Valid reasons for dismissal include:

  • Gross misconduct
  • Termination for redundancy or other business reasons
  • Termination during the probation period
  • Employment termination by default, i.e. in case of a fixed-term contract

Notice Period

Employers are only required to give notice to employees when a fixed-term contract is ending without an extension, which has a 30-day notice period. During the first five years of employment, a 30-day notice is mandatory, and it extends to 90 days for employees with more than five years of service.

Severance Pay

Severance pay is required if the employee is dismissed without cause .

Annual Leave Entitlements and Company Policies in Colombia

The annual leave entitlement in Colombia is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Colombia

Colombia has 18 mandatory national public holidays in a year

Holiday Date

Paid Time Off in Colombia

Maternity Leave in Colombia

Paternity Leave in Colombia

Sick Leave in Colombia

Bereavement Leave

Marriage Leave

Parental Leave In Colombia

Colombia's Benefits Built Into Playroll

Competitive benefits package in Colombia

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Colombia's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Colombia

Make your benefits package in Colombia a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Short-Term Sickness Insurance
  • Long-Term/Disability Insurance
  • Workman's Compensation
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Colombia

Playroll allows you to provide localized benefits for employees in Colombia within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Colombia create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Colombia

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Colombia.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!