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EOR Partners in Colombia
Employ in Colombia
Colombia is one of the most dynamic and rapidly growing economies in Latin America, offering vast opportunities for global expansion. With its strategic geographic location, abundant natural resources, and strong trade agreements, Colombia has become a key player in the global market. The country’s pro-business environment and government initiatives focused on foreign investment make it an attractive destination for businesses seeking to expand into the Latin American market.
About the Country of Colombia
Colombia boasts the fourth-largest economy in Latin America, driven by industries such as oil, mining, agriculture, manufacturing, and services. With its membership in trade agreements like the Pacific Alliance and multiple free trade agreements, Colombia provides businesses access to a market of over 1.4 billion consumers globally. Its workforce is young, growing, and well-educated, with a strong emphasis on engineering, IT, and agriculture. Colombia also enjoys a stable political environment, further enhancing its attractiveness as a hub for business operations.
51.87 Million
Population
Colombian Peso
Currency
343.6 Billion
Global Domestic Product
Why Choose Colombia For Global Expansion?
Colombia offers several advantages for businesses looking to expand globally, including its strategic location that connects North and South America, a growing middle class, and a favorable legal environment for foreign investors. Colombia’s tax incentives, free trade zones, and government support for key industries such as technology, manufacturing, and agriculture make it a compelling choice for global businesses. The country's infrastructure has also significantly improved, supporting international trade and investments.
Employment Landscape
Colombia’s employment landscape is characterized by a well-regulated labor market with specific laws that provide protection for employees. The country has a diverse workforce, with a growing number of professionals in technology and engineering. Labor laws in Colombia ensure fair wages, benefits, and working conditions for employees, making it easier for businesses to attract and retain talent. The minimum wage and other statutory benefits are regularly adjusted to reflect inflation and economic conditions.
Our Services in Colombia
We offer a wide range of services to support businesses expanding into Colombia, including payroll management, employment contracts, and ensuring compliance with local labor regulations. Our team provides visa and work permit assistance for foreign employees and manages local benefits administration. We also handle employee onboarding and offboarding processes, helping you manage your workforce efficiently while complying with Colombian labor laws.
Employment Benefits in Colombia
In Colombia, employers must provide statutory benefits, which include health insurance, pension contributions, and severance pay. Employees are also entitled to life insurance, transportation subsidies, and work accident insurance. Many companies go beyond the statutory requirements, offering benefits such as private healthcare, meal allowances, and performance bonuses to remain competitive in attracting top talent.
Annual Leave
Employees in Colombia are entitled to 15 days of paid annual leave after completing one year of service. These vacation days can be taken at any time, but at least six of the days must be taken consecutively. Unused vacation days can be carried over, though employees are encouraged to use their leave to ensure adequate rest.
Sick Leave
Employees are entitled to paid sick leave in Colombia. For the first two days of sick leave, the employer is responsible for paying the employee 66.67% of their salary. After the second day, the Social Security system covers the cost of sick leave, paying 66.67% of the employee’s salary until they recover, for up to 180 days.
Additional Benefits
In addition to statutory benefits, employers in Colombia often provide additional perks such as meal vouchers, transportation allowances, flexible work arrangements, and childcare support. Some companies also offer bonuses and profit-sharing plans to further incentivize employees.
Work Hours and Breaks
The standard workweek in Colombia is 48 hours, spread over six days (Monday through Saturday). Employees are entitled to at least one rest day per week, usually on Sundays. Overtime work must be compensated at a higher rate, typically 25% above the regular hourly wage for daytime overtime and 75% above for nighttime overtime. Breaks are also mandated, with employees entitled to at least one hour for lunch during a full workday.
Salary Tax Table
| Taxable Base | Tax Liability | Excess of Taxable Base | Tax Rate |
|---|---|---|---|
| 0 - 41,600,000 | 0 | 0 | 0% |
| 41,600,001 - 104,900,000 | 0 | Amount over 41,600,000 | 19% |
| 104,900,001 - 168,600,000 | 12,000,000 | Amount over 104,900,000 | 28% |
| 168,600,001 - 417,400,000 | 31,000,000 | Amount over 168,600,000 | 33% |
| 417,400,001 - 835,000,000 | 88,000,000 | Amount over 417,400,000 | 35% |
| 835,000,001 and above | 219,000,000 | Amount over 835,000,000 | 39% |
*All figures based on local currency
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