Colombia
Make employment in Colombia easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Colombia, all in one easy-to-use platform.
- Capital City
Bogota
- Currency
Colombian peso ($, COP)
- Languages
Spanish
- Population size
51,049,498
Facts & Stats
- Capital City
Bogota
- Currency
Colombian peso ($, COP)
- Languages
Spanish
- Population size
51,049,498
- Ease of doing business
Easy
- Cost of living index
$ (131 of 139 nations)
- Payroll frequency
Biweekly/Monthly
- VAT - standard rate
19%
- GDP - real growth rate
3.3%
The second-most populous country in South America, Colombia is the only country on the continent with beaches on both the Caribbean Sea and the Atlantic Ocean. Colombia is well known for its coffee and its vibrant arts scene. With many public holidays (the second-most in the world, behind only India), plentiful natural resources, and a large population, Colombia is home to expert workers in a variety of important fields.
Grow your team in Colombia with Remote
Looking to employ workers in Colombia? Companies hiring in Colombia must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Colombia on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Colombia team. You can also pay contractors now in Colombia with Remote.
Risks of misclassification
Colombia, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Colombia may lead to fines and penalties for the offending company.
Employing in Colombia
Colombia has many skilled workers, most of whom primarily speak Spanish, the country’s official language. Before you recruit Colombian or expat employees, you should understand the specifics of Colombian employment and labour laws.
Employment contracts are required for both fixed-term employment and permanent employment agreements. Remote recommends employment contracts for every hire, and every contract must adhere to Colombian employment and labour laws. Usually, fixed-term contracts in Colombia cannot be for more than three years, though there is a provision to extend them to a later date. The contracts are usually drafted in Spanish.
To employ workers in Colombia, contact Remote to learn more about your options.
Minimum Wage
Colombia labour laws for two types of salaries.
Integral Pay: where pay is paid separately to other benefits and entitlements
Ordinary Pay: where benefits and entitlements are included in the monthly pay payments for the employee
The type of pay must be agreed to by both the employee and employer. This pay type must be outlined in the relevant Employment Agreement.
The CST (Código Sustantivo del Trabajo) specifies that an integral pay cannot be less than 10 monthly minimum wage payments, plus 30% of the benefit factor.
Effective January 2024, the new minimum wages are as follows:
Integral Pay: 16,900,000.00 COP
Ordinary Pay: 1,300,000 COP
Integral and Ordinary Salaries
Colombia labour laws for two types of salaries.
Integral Salary: where salary is paid separately to other benefits and entitlements
Ordinary Salary: where benefits and entitlements are included in the monthly salary payments for the employee
The type of salary must be agreed to by both the employee and employer. This salary type must be outlined in the relevant Employment Agreement.
The CST (Código Sustantivo del Trabajo) specifies that an integral salary cannot be less than 10 monthly minimum wage payments, plus 30% of the benefit factor.
That means in 2023, the benchmark for a gross integral salary in Colombia must be at least 15,080,000 Colombian pesos (COP) as the minimum monthly wage is 1,160,000 COP.
13th Month Pay
Employees in Colombia who are earning an Ordinary Salary are entitled to receive an extra month’s pay each year, calculated by dividing the gross annual salary by 12.
The payment is equally split and delivered 50% in June and 50% in December. These payments are not only customary but are required by law.
If an employee earns less than $15,080,000 COP per month, an Ordinary Salary would apply. Note that the 13th salary should not be included in the total annual gross salary.
If an employee earns a gross salary of $15,080,000 COP per month or more, an 'integral salary' is usually applied. Employees who receive an integral salary, do not receive a 13th salary payment.
Payroll Cycle
For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
Onboarding Time
We can help you get a new employee started in Colombia fast. The minimum onboarding time we need is only 5 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
18 Public holidays
Want to see and manage all holidays? Sign up for our free HRIS!
Effortless HR in Colombia: Take the Tour
Competitive benefits package in Colombia
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practising “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Colombia are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Fair Pricing in Colombia
Employer of Record
Hire and pay your global team
Starting at $915/month
for annual plans
Top features
Satisfaction guaranteed
No deposits or hidden fees
Zero onboarding or offboarding fees
Compliant equity incentives support including withholding and reporting
Built-in security and compliance
Fast onboarding (average 2-3 days)
Flexible, localised benefits
Contractor Management
Compliantly onboard and pay contractors
$44
per contractor/month
Top features
Only pay for contractors you actively work with
Work with contractors in 200+ countries
Create, edit, and sign tailored, localised contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Payroll
Consolidate your multi-country payroll
$43
per employee/month
Top features
Simplify: Comprehensive platform that integrates all payroll functions
Support: Personalised assistance with a dedicated team and specialists
Accuracy: Test runs and parallel pay runs before implementation
Compliance: Adhere to local labour laws in every country
Timeliness: Accurate and on-time payroll with labour authority reporting handled
Experience: Seamless payroll with easy access to payslips and expenses
Top features
Guided onboarding and offboarding
Employee profile and document management
Time and attendance (time off and tracking)
Expense management and reimbursement
Employee self-serve on the platform and mobile app