Payroll and Benefits Guide Colombia

Employer

Employer Payroll Contributions

* Not included in total, as only applicable to specific employee related earnings

Employee

Employee Payroll Contributions

Employee

Employee Income Tax

Tax Units (1 Tax Unit= 36,308 COP)

General

The monthly minimum wage in Colombia is COP1,160,000, the transportation allowance is set at COP140,000.

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 the first half within the first 15 days of June and the other half within the first 20 days of December. These will be prorated when a full year has not been worked.

General

By law in Colombia, the maximum number of working hours is 8-10 hours per day and 48 hours per week.

Worker’s non-working time must be respected and employers should not contact them after working hours.

With effect from summer 2023, the 48-hour work week will gradually be reduced. Colombians will work one fewer hour per week each year, which will not negatively affect their salary, benefits, or the value of the daily working hour. The initial objective of the measure is to reduce the workday to 42 working hours per week by the year 2026. It will start with one fewer hour in the first two years (2023 and 2024) and two fewer hours in the following years (2025 and 2026).

Overtime

All work above the standard weekly working hours is paid as overtime and regulated by the employment contract/collective agreements.

An employee who has to work between 22:00 and 06:00, must be paid 35.00% more than the equivalent daytime salary.
Exemptions for the receipt of overtime include employees who earn more than 10x the minimum wage or employees in trust positions.
For the remaining employees, the payment of overtime is generally based on the following:

• Daytime overtime is paid at 125.00% of the regular pay rate, increasing to 175.00% of the standard pay rate for night-time overtime hours.
• Sunday/extra daytime/holiday overtime work is paid at 175.00% of the regular pay for holidays and night-time work and 125.00% for overtime work during the daytime.

Working Week

Monday-Friday/Monday-Saturday

Paid Time Off

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.

Public Holidays

There are 18 public holidays. In Colombia, 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.

Sick Days

Termination Process

General

Internet allowance, mobile phone allowance, meals vouchers/allowance and fitness/wellness allowance.

VISA

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.

General

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.

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.

General

The standard rate of VAT in Colombia is 19.00%.