Hire remote talent in Colombia

Employer of record in Colombia

Colombia can offer great opportunities for companies to expand their operations into Central and South America, but hiring an employee in Colombia is complex. It would be best to stay aware of all the steps and rules to fully comply with local labor laws covering the onboarding process. Would you like to learn more about it?

Learn about everything you need to know to hire employees in Colombia

Why hire Colombian workers?

Why hire Colombian workers?

This country has a talented and skilled workforce that can offer several benefits. Here are some of the advantages:

Employer of Record in Colombia

Before hiring employees in Colombia, there are a few important things you’ll need to know.

Time zoneUTC−05:00
Total Time zones4
Working hours per week48
Working weekMonday–Friday
Typical hours worked8
Personal Tax filing deadline30th April
Financial Yea1st January to 31st December
Date formatdd/mm/yyyy
CurrencyColombian Peso (MXN)
VATThe standard rate is 19%
EMPLOYERS (% of Gross Salary)
Sickness & Maternity8.5%
Disability & DeathN/A
Layoff & Retirement Benefits1 month
Child CareN/A
Work Related AccidentsAccording to the risk rate that the employee has, it varies according to the level of risk 0,522%. / 1,044% / 2,436%. / 4,35% / 6,96%
Housing TaxN/A
Others9% (SENA 2% ICBF 3% Compensation box 4%)
Payroll State TaxN/A
Total Employment Cost29.5% plus work related activities according to risk
Last updateQ1 2023
EMPLOYEES (% of Gross Salary)
Sickness & Maternity4%
Disability & DeathN/A
Layoff & Retirement Benefits4% (plus 1% extra if the income is monthly over 4 minimum salaries to 16 minimum salaries)
Total Employee Cost8%
Last updateQ1 2023
Payroll CycleBi-Weekly / Monthly
13th Salary1 month

Income Tax

Annual Income (COP)Annual Income (USD)Percentage
0 a 41.424.4600 a 10.8110%
41.424.460 a 64.606.80010.811 a 16.86219%
64.606.800 a 155.816.40016.862 a 40.66828%
155.816.400 a 329.494.68040.668 a 85.99833%