Colombia at a glance
Taxes in Colombia
Employer Contributions
Total employer contributions: 25%–36.5%
| Contribution Type | Rate |
|---|---|
| Mandatory Health Plan (EPS) | 8.5% |
| Mandatory Pension Fund (AFP) | 12% |
| Occupational Risk (ARL) | 0.5%–6.96% |
| Colombian Welfare Institute (ICBF) | 3% |
| National Apprenticeship System (SENA) | 2% |
| Family Compensation Fund (Caja) | 4% |
Total employer contributions: 25%–36.5%
| Contribution Type | Rate |
|---|---|
| Mandatory Health Plan (EPS) | 8.5% |
| Mandatory Pension Fund (AFP) | 12% |
| Occupational Risk (ARL) | 0.5%–6.96% |
| Colombian Welfare Institute (ICBF) | 3% |
| National Apprenticeship System (SENA) | 2% |
| Family Compensation Fund (Caja) | 4% |
Income tax: 0%–39% | Social security: 8%
| Contribution Type | Rate |
|---|---|
| Mandatory Health Plan (EPS) | 4% |
| Mandatory Pension Fund (AFP) | 4% |
| Annual Income (COP) | Rate |
|---|---|
| Up to 57,089,660 | 0% |
| 57,089,660 – 89,035,800 | 19% |
| 89,035,800 – 214,733,400 | 28% |
| 214,733,400 – 454,091,580 | 33% |
| 454,091,580 – 993,535,780 | 35% |
| 993,535,780 – 1,623,594,000 | 37% |
| Over 1,623,594,000 | 39% |
Employer of Record in Colombia
How Remote& EOR Works
Remote& acts as the legal employer of your Colombian workers — managing EPS, AFP, ARL, and parafiscal contributions, payroll, tax filings, and employment contracts while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files social security and parafiscal contributions, administers mandatory benefits, ensures Labour Code compliance |
| Employee | Works for your company under a locally compliant Colombian contract |
Ask Remi:
"Hire a senior data analyst in Bogotá — COP 8,000,000/month, starting next month" Remi handles everything: contract, EPS/AFP registration, ARL enrollment, SENA/ICBF contributions, and payroll.
Benefits in Colombia
- Public health insurance (EPS): Mandatory universal health coverage through the SGSSS system — employer contributes 8.5%, employee contributes 4%
- Pension fund (AFP): Mandatory — employer contributes 12%, employee contributes 4%
- Occupational risk (ARL): Mandatory workers' compensation insurance; rate varies by risk category
- Severance fund (Cesantías): Employer deposits one month's salary per year of service into a designated account annually
- Wellness programs
- Flexible or hybrid working arrangements
- Professional development budget
- Employee assistance programs
- Birthday leave
- Educational support
- Meal subsidies
- Medical check-ups
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 15 paid working days |
| Sick Leave | 180 days (employer pays first 3 days; social security covers from day 4) |
| Maternity Leave | 18 weeks |
| Paternity Leave | 14 calendar days |
| Childcare Leave | 10 paid working days per year for children with serious or terminal illness |
Employment conditions
Probation
Probation cannot exceed 2 months for indefinite contracts. For fixed-term contracts under one year, probation is limited to one-fifth of the contract duration. Probation may only apply to the first contract between the same parties.
Working Hours and Overtime
Overtime is capped at 2 hours per day and 12 hours per week, applying to both day and night shifts.
Employee Rights & Protections
Colombian workers are entitled to: occupational health and safety protections, anti-discrimination protection, paid leave, public holidays, 13th-month salary (prima de servicios), severance fund (cesantías), personal data protection, and union membership rights.
Payments
End of employment in Colombia
Contracts may be terminated through fixed-term expiry, mutual agreement, employee resignation, redundancy, or suspension of business activity exceeding 120 days. Redundancy and business suspension require prior Ministry of Labour authorization and written employee notification. Non-compliance risks fines, compensation payments, and labor litigation.
Frequently asked questions
Four paths: run payroll from HQ (generally non-compliant long-term); engage genuine independent contractors for truly autonomous work; establish a Colombian SAS or similar entity for direct employment; or use Remote& as Employer of Record for the fastest compliant path.