Colombia

Hiring guide in Colombia

Have the latest guide for hiring in Colombia through Native Teams

What should I know about hiring in Colombia?

Acquiring a thorough understanding of Colombia’s employment agreements, taxation system, hiring techniques, and laws against discrimination is crucial prior to starting the hiring process within the country.

Furthermore, it’s important to note that as an employer, you will be responsible for deducting funds to cover your workers’ taxes and perks, including social security.

In order to attract and keep high-calibre professionals, ensure that you’re offering appealing benefits packages. Lastly, following Colombia’s cultural customs and business protocols can significantly enhance commitment and foster favourable rapport among your local workforce.

Why is Colombia a good choice for finding remote employees?

Colombia offers several compelling reasons for being a favourable choice when seeking remote employees. Firstly, Colombia boasts a diverse and skilled workforce, with professionals fluent in English and possessing expertise in various fields such as technology, design, customer support, and more.

Moreover, the Colombian government has been working to create a more favourable legal and business environment for remote work, making it easier for companies to engage with remote employees.

Finally, many remote workers are attracted to Colombia for its quality of life, offering a mix of urban amenities, natural beauty, and vibrant culture.

How can Native Teams help you hire in Colombia?

Native Teams provides comprehensive support for legally onboarding new staff in Colombia. Our panel of specialists will furnish advice and thorough insights into employment statutes, rules, and potential language and cultural differences. By using our employer of record solutions, you can elevate your perks and remuneration scheme to harmonise better with prevailing market expectations.


 Hire your first Colombian employee with Native Teams.


Legal requirements for hiring in Colombia

Minimum wage

The monthly minimum wage in Colombia is 1,300,606 COP.

Contributions & taxes

Employer tax

The total employer cost ranges from 21.02% – 27.46%. 

Corporate tax

The corporate tax in Colombia is 35%.

Employee tax

The total employee cost is 12%. 

Income tax

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

  • 0.0% — 0-1,090 Tax Units
  • 19.0% — 1,090-1,700 Tax Units 
  • 28.0% — 1,700- 4,100 Tax Units
  • 33.0% — 4,100- 8,670 Tax Units
  • 35.0% — 8,670- 18,970 Tax Units
  • 37.0% — 18,970- 31,000 Tax Units
  • 39.0% — 31,000 Tax Units +

To calculate the salary and taxes in Colombia please click here.


Payroll cycle

The frequency of the payroll cycle in Colombia varies as it can be bi-monthly, monthly, or paid on the 15th and last day of the month.

Is there a 13th salary in Colombia?

In Colombia, the employer must pay the first half of the 13th salary within the first 15 days of June and the other half within the first 20 days of December.

Labor rules

Probation period

The probation period in Colombia is optional. Employers can set a probation period of 1/5 of the contract duration up to 2 months. For permanent employees, the probation period lasts up to two months.

Notice period 

For the initial five years of employment, a notice of 30 days is mandatory, with the possibility of extending to 90 days for more extended tenure. In the case of obra/labour and indefinite agreements, a formal notice isn’t obligatory, although it’s customary to provide 15 days’ notice. Throughout the probationary period, a 15-day notice is essential.

Severance period

In cases where the employee’s earnings fall below 10 times the minimum monthly wage, the entitlement to severance pay is 30 days for the initial year of employment, along with an additional 20 days for each subsequent year of service. For employees who earn above 10 times the minimum monthly wage, the entitlement to severance pay stands at 20 days for the first year of employment, with an extra 15 days for each additional year of service.

Working hours

The maximum working hours in Colombia is 8–10 hours per day, 47 hours per week. 

Leave and benefits

Public holidays

The following are the national holidays in Tunisia:

  1. New Year’s Day
  2. Epiphany
  3. Saint Joseph’s Day
  4. Maundy Thursday
  5. Good Friday
  6. Labour Day
  7. Ascension Day
  8. Corpus Christi
  9. Feast of the Sacred Heart
  10. Feast of the Saints Peter and Paul
  11. Independence Day
  12. Battle of Boyaca Day
  13. Assumption of Mary
  14. Day of the Races
  15. All Saints’ Day
  16. Cartagena Independence Day
  17. Feast of the Immaculate Conception
  18. Christmas Day

Sick leave

The initial two days of leave are covered by the employer, and the subsequent days are financed by social security. Employees have the right to a maximum of six months (180 days) of sick leave for non-work-related illnesses.

Maternity leave & Paternity leave

Workers have the privilege of 18 weeks of fully paid maternity leave, receiving 100.00% of their regular salary. Male workers are entitled to eight business days. The employer covers these payments and is subsequently completely reimbursed by the social security system.

Other leave

Bereavement leave

In case of the passing of an immediate family member, employees have the option to take up to five working days as bereavement leave.

Parental leave

There are no laws regarding parental leave in Colombia. 

Marriage leave

Employees can take up to five working days in the event of their wedding.

What are the minimum vacation days?

It is mandatory for employers to provide employees with 15 paid working days of annual leave for every year of their service.

Insurance

Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

*Native Teams can support you in finding the best private insurance in the country. Contact us, and we will send a comparison of insurance packages and prices.*

Visa

Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in Colombia, upload the documents from our onboarding list (relocation to log in/pricing). 

Why use Native Teams for hiring in Colombia?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

  • No paperwork: We will handle all the necessary paperwork for you.
  • Save on taxes: We help you handle your taxes.
  • No company set up: You can expand your business using our company entitles.
  • Online onboarding: We’re here to ensure your onboarding process is trouble-free.
  • No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
  • Increase your profit: We assist you in growing your business and maximizing your profits.
  • Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
  • Local support: We can assist you in understanding and complying with the relevant local laws.
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*Note: The provided information was accurate at the time of writing.

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