Currency
Colombian Peso (COP)
EOR IN Colombia
Employer of Record in Colombia
Yes, you can hire an employee in Colombia without setting up your own company there. Swivelt acts as the Employer of Record in Colombia through our own local entity, so you can hire, onboard, and pay staff compliantly, usually within a couple of weeks. No local entity, and no third-party partner.
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A guide to employing and growing your team in Colombia
Fast and compliant market entry. Hire top local talent without the need for a legal entity
Colombia has a diverse economy with strong sectors in oil, coffee, mining, and a rapidly growing services and tech industry. Employment is governed by the Substantive Labor Code, which provides significant protections and mandatory benefits. A key feature of the Colombian market is the distinction between “Ordinary Salary” (which includes additional benefits) and “Integral Salary” (for high earners, where benefits are pre-packaged into the monthly rate). As of January 1, 2026, the statutory minimum wage is COP 1,750,905 per month, plus a mandatory transportation allowance of COP 249,095 for eligible employees, totaling COP 2,000,000.
Employer Contributions
Pension: 12%
Health Insurance: 8.5%
Professional Risks (ARL): 0.522% – 6.960%
Family Welfare Fund (ICBF): 3%
National Learning Service (SENA): 2%
Family Compensation Fund: 4%
Total Employer Contribution: 30.022% – 36.46%
Employee Payroll Taxes
Pension: 4%
Health Insurance: 4%
Solidarity Pension Fund: 1% – 2% (only for those earning more than 4 minimum wages)
Total Employee Contribution: 8% – 10%
Employee Income Tax Rates
Up to 1,090 UVT: 0%
1,091 – 1,700 UVT: 19%
1,701 – 4,100 UVT: 28%
4,101 – 8,670 UVT: 33%
8,671 – 18,970 UVT: 35%
18,971 – 31,000 UVT: 37%
Above 31,000 UVT: 39%
Statutory Leave
Employees are entitled to 15 consecutive working days of paid annual leave for every year of service. Colombia is known for having a high number of public holidays, observing 18 per year. Additionally, employees receive a “Prima de Servicios” (13th-month salary), which is one month’s salary per year, paid half in June and half in December.
Pregnancy and Maternity Leave
Female employees are entitled to 18 weeks of paid maternity leave. This is compensated at 100% of the employee’s salary, paid by the social security system. Protection against dismissal (labor stability) applies during pregnancy and for several months following the return to work.
Paternity Leave
Fathers are entitled to 2 weeks of paid paternity leave. This has been expanded from previous years to encourage shared responsibility in childcare.
Other leaves
Parental Leave: Colombia allows for Shared Parental Leave, where the last six weeks of the mother’s maternity leave can be transferred to the father by mutual agreement.
Other Leaves: Includes 5 days of paid bereavement leave for the death of an immediate family member, 5 days of marriage leave (customary/contractual), and leave for voting or jury duty.
Severance (Cesantías): Employers must deposit one month’s salary per year of service into a severance fund, plus 12% annual interest paid directly to the employee.
Termination Process
Termination in Colombia requires “just cause” (e.g., serious breach of contract, poor performance following due process) to avoid severance. If terminated without just cause, the employer must pay an indemnity based on the employee’s tenure and salary type. For indefinite contracts, this is typically 30 days of salary for the first year and 20 days for each subsequent year.
Notice Period
While the law mentions a 30-day notice for certain dismissal types, in practice, employers often terminate immediately and pay the corresponding indemnity. Employees are generally expected to provide 30 days’ notice when resigning.
Probation Period
The probation period must be in writing and cannot exceed two months. For fixed-term contracts shorter than one year, the probation cannot exceed one-fifth of the contract duration. During this time, either party can terminate the relationship without indemnity.
Can you hire in Colombia without a local entity?
Yes. Through Swivelt’s EOR service, we become the legal employer in Colombia on your behalf. You choose and manage the employee. We handle the local employment contract, payroll, tax, benefits, and compliance.
What Swivelt handles in Colombia
1
A compliant Colombia employment contract
2
Monthly payroll in Colombian Peso (COP)
3
Local income tax and social contributions
4
Statutory benefits and leave
5
Ongoing compliance with Colombia labour law
EOR FAQs
How long does it take to hire in Colombia?
Usually one to two weeks once we have the candidate’s details, because our Colombia entity is already in place.
Do we need our own company in Colombia?
No. Swivelt’s local entity is the legal employer, so you do not need to register anything.
Does Swivelt use a local partner in Colombia?
No. We operate through our own entity in Colombia.