Your quick guide on talent and labor compliance norms in Colombia
Capital
Bogotá
Currency
Colombian Peso (COP)
Languages
Spanish
Payroll Frequency
Monthly, Bi-Monthly
GDP per Capita
$6,590
Employer Tax
21.022% - 36.46%
Talent Overview
Colombia is a democracy and the fourth-largest economy in South America. The country’s GDP is expected to hit 350 USD Billion in 2022. This is tied to its continued reform, investments, and main exports of oil, coal, coffee, and emeralds.
Major economic hubs:
Bogotá, Medellin, Cali, Barranquilla, and Cartagena
Skills in demand:
ICT Roles, Warehouse Occupations, Customer Service Roles, Technical Support Occupations, Education/Teaching Occupations, Business Advisors, and Digital Services
Local Universities
The top local universities in Colombia are as follows:
Local: 1
World: 359
Local: 2
World: 480
Local: 3
World: 830
Local: 4
World: 982
Local: 5
World: 1104
Salary Data
The table mentions the average monthly salary in Colombia
| Job Title | Average Monthly Salary (COP) | Average Monthly Salary (USD) |
| Financial Operations Manager | 8,790,000 | 2,212 |
| General Manager | 8,470,000 | 2,132 |
| Business Development Manager | 7,000,000 | 1,762 |
| Financial Analyst | 5,720,000 | 1,440 |
| Business Analyst | 5,850,000 | 1,473 |
| Project Manager | 5,100,000 | 1,284 |
Talent Sourcing Tips
Linkedin, Glassdoor, Indeed, Computrabajo, Trabajando, Elempleo
12,760,000
Colombia offers many advantages to companies looking to hire new employees. The country has a large pool of highly-skilled workers, and the cost of living is relatively low.
However, there are a few things to keep in mind when hiring in Colombia. In this section we’ll provide you with the basics of what to prepare when onboarding talents in Colombia.
Both verbal and written contracts are accepted in Colombia. There is no requirement that the contract should be written in a specific language, and employers can choose between Spanish or English.
In Colombia, the probation period is up to 2 months.
| Date | Name | Type |
| 1 Jan | New Year’s Day | National holiday |
| 8 Jan | Epiphany | National holiday |
| 28 Mar | Maundy Thursday | National holiday, Christian |
| 29 Mar | Good Friday | National holiday, Christian |
| 1 May | Labor Day / May Day | National holiday |
| 13 May | Ascension Day | National holiday |
| 3 Jun | Corpus Christi | National holiday |
| 10 Jun | Sacred Heart | National holiday |
| 1 Jul | Feast of Saint Peter and Saint Paul | National holiday |
| 20 Jul | Independence Day | National holiday |
| 7 Aug | Battle of Boyacá Day | National holiday |
| 19 Aug | Assumption of Mary | National holiday |
| 14 Oct | Columbus Day | National holiday |
| 4 Nov | All Saints’ Day | National holiday |
| 11 Nov | Independence of Cartagena | National holiday |
| 8 Dec | Feast of the Immaculate Conception | National holiday |
| 25 Dec | Christmas Day | National holiday, Christian |
| Type of leave | Time Period | Mandatory |
| Annual leave/Earned Leave | At least 15 days, after a year of service | Yes |
| Sick Leave | Up to 180 days, based on medical certificate | Yes |
| Maternity Leave | 18 weeks | Yes |
Payroll
Payroll Cycle
Workers are paid once a month. Usually, payments are made at the end of the month. However, some industries are slowly implementing bi-monthly cycles, which allows them to pay their employees every 15th and the last day of the month.
Minimum Wage
The minimum wage for employees is 1,300,606 COP, including a mandatory transportation allowance of 140,606.00 COP.
Overtime Pay
Employees working for more than the regular 40 hours a week should be paid as follows:
Bonus
Paying a 13th month pay or popularly known as “Primas” is mandatory in Colombia. It is equivalent to an employee’s average monthly salary and is divided into two parts. The employer must pay the first half within the first two weeks or 15 days of June and the second half within the first two weeks or first 20 days of December.
Taxes
| Type of Contribution | Contribution |
| Health and Medical System | 8.5% |
| Pension System | 12% |
| Professional Risk System | 0.522% – 6.96% |
| Payroll tax | 9% (only applies to employees whose monthly income is higher than ten minimum monthly wages) |
| Type of Contribution | Contribution |
| Pension System | 4.00% – 5.00% |
| Health and Medical Plan | 4.00% |
Colombia follows a progressive tax rate:
| Annual Taxable Income | Tax Rate |
| Not over 1,090 | 0.00% |
| 1,090 – 1,700 | 19.00% |
| 1,700 – 4,100 | 28.00% |
| 4,100 – 8,670 | 33.00% |
| 8,670 – 18,970 | 35.00% |
| 18,970 – 31,000 | 37.00% |
| 31,000 and up | 39.00% |
Colombia’s VAT for 2022 is 19%. However, specific services and goods are taxed at 0% and 5%.
Offboarding & Termination
Employment contracts in Colombia may be canceled at any time with immediate effect. The organization must disclose the rationale or grounds for termination, which must be communicated in writing. Once the termination contract has been authenticated and acknowledged by both parties, it must be delivered to the appropriate government authorities.
Full-time employees in Colombia must serve 30 days of notice period. The period can be reduced to 15 days’ in case of termination due to poor performance.
| Situation | Severance pay |
| Employees earning less than 10 minimum wage per month | 30 days of salary for the first year of service + 20 days of salary for each additional year of service |
| Employees earning 10 minimum wage per month or more | 20 days of salary for the first year of service + 15 days of salary for each additional year of service |
| Employees with a fixed-term agreement | Regular monthly salary until the agreement expires |
| Project-based employees | Regular salary until the end of the project, no less than 15 days of salary |
Visa and Immigration
Foreigners hoping to work in Colombia must first obtain a job offer from a local employer before applying for a visa. There are several types of visas that must be obtained at the Ministerio de Relaciones Exteriores offices in Bogota, here are two of the most common:
| Overtime Period | Compensation |
| Performed before midnight | 25% above regular hourly rate |
| Night shifts (9:00pm–6:00am) | 35% above regular hourly rate |
| Sundays and Public Holidays | 75% above regular hourly rate |
| Type of Visa | Validity |
| M Visa (Migrant Visa) | 3 Years – Renewable |
| R Visa (Resident Visa) | 5 Years – Renewable |
