Business · Employer of record
Employer of record in Colombia
Employing someone in Colombia through an employer of record: social security on top of salary, the minimum wage and transport allowance, the 42-hour week, the service bonus and severance fund, and dismissal pay.
Checked on 16 October 2026. The headline rules for a standard employee, from official sources where they opened and law firm, PwC or specialist publisher guides where they didn't; each line names its source. Sectors, collective agreements and contracts can change them. This is general information, not legal advice.
Know this first
- The 2026 minimum wage decree is still before the Council of State; the labour minister has said no one will have to pay wages back.
- Since the 2025 labour reform, employers must follow a formal disciplinary procedure before any sanction.
Sources: Publimetro, October 2026, Andersen, Colombia labour news, December 2025
Employing someone in Colombia
- Employer costs on top of salary
- Pension 12%; workplace risk insurance 0.522% to 6.96% by risk class. Health (8.5%) and payroll levies (9%) apply only to salaries above 10 minimum wages, according to PwC. The 4% family fund share of those levies is generally thought to apply to all salaries; we couldn't confirm this, so ask your provider. Contributions are capped at 25 minimum wages. PwC Worldwide Tax Summaries, Colombia, July 2026
- Minimum wage
- COP 1,750,905 a month from 1 January 2026, plus a transport allowance of COP 249,095 for anyone earning up to twice the minimum wage. The decree is being challenged in court: the Council of State suspended it in February 2026, lifted the suspension in July, and hasn't yet ruled on the merits. Decreto 1469 de 2025 (MinTIC normograma), Decreto 1470 de 2025 (Alcaldía de Bogotá), Publimetro, October 2026
- Holiday
- 15 working days' paid holiday per year of service. MinTrabajo, Concepto 220117 de 2015
- Working hours
- 42 hours a week from 15 July 2026. Ley 2101 de 2021 (Alcaldía de Bogotá)
- Probation
- Up to 2 months, agreed in writing. Código Sustantivo del Trabajo (Alcaldía de Bogotá)
- Notice from the employer
- No notice period on open-ended contracts; a dismissal without just cause triggers the compensation below instead. Código Sustantivo del Trabajo (Alcaldía de Bogotá)
- Severance
- Dismissal without just cause, open-ended contract, salary under 10 minimum wages: 30 days' pay for the first year and 20 for each year after. At 10 minimum wages or more: 20 days, then 15. Código Sustantivo del Trabajo (Alcaldía de Bogotá)
- Extra pay the law requires
- A service bonus (prima) of 30 days' pay a year, half by 30 June and half by 20 December; a severance fund (cesantías) paid into a fund before 15 February each year, with 12% interest to the employee by 31 January; and the transport allowance above. Gerencie, prima de servicios, Ministerio de Justicia, cesantías interest
- Contract
- Can be verbal or written, but probation must be in writing, and since 2025 task-based contracts must be written. Código Sustantivo del Trabajo (Alcaldía de Bogotá), Andersen, Colombia labour news, December 2025
- Payroll and tax
- The employer withholds income tax on salaries. PwC Worldwide Tax Summaries, Colombia, tax administration
- Sick pay
- The employer pays the first 2 days; the health insurer pays from day 3 (2019 guidance; check for changes under the 2025 reform). Ministerio de Justicia, sick pay, 2019
Providers and what they say about Colombia
What each provider's own website says about Colombia, in order of its published starting price. None of them publishes a separate price for Colombia; the starting prices are worldwide or regional (Papaya quotes EUR 650 in Europe), and what you pay is set by quote.
| Provider | Covers Colombia? | What it says | Starting price a month | |
|---|---|---|---|---|
| Skuad | Yes, on its own site | Listed in its coverage list | From USD 199 | Go to Skuad |
| Pebl (formerly Velocity Global) | Yes, on its own site | - | USD 399 | Go to Pebl (formerly Velocity Global) |
| Multiplier | Yes, on its own site | Says it uses its own entities everywhere | From USD 459 (annual), USD 499 monthly | Go to Multiplier |
| Deel | Yes, on its own site | Says it has its own entity | From USD 599 | Go to Deel |
| Remote | Yes, on its own site | - | From USD 599 | Go to Remote |
| G-P (Globalization Partners) | Has its own page for it | - | From USD 599 | Go to G-P (Globalization Partners) |
| Atlas HXM | Yes, on its own site | - | From USD 599 | Go to Atlas HXM |
| Papaya Global | Not stated | Its page wouldn't open for us | From USD 650 (EUR 650 in Europe) | Go to Papaya Global |
| Oyster | Yes, on its own site | Says it uses both its own entities and partners | From USD 699 | Go to Oyster |
| Rippling | Not stated | Says 80 countries, with no list | Quote only | Go to Rippling |
Coverage is each company's own claim, from its country pages and coverage lists; we haven't checked how each one employs there. Ask whether it uses its own company or a partner in Colombia.
Other countries
Employer costs, leave, notice, severance and the catches, with the providers that cover each one.
United KingdomIrelandGermanyFranceNetherlandsSwedenSwitzerlandBelgiumSpainPortugalItalyPolandRomaniaCanadaAustraliaSingaporeJapanIndiaPhilippinesSouth AfricaMexicoBrazilChileArgentina
All 25 countries side by side: employer cost at your salary, holiday, notice and redundancy pay