Before diving into the benefits, it’s essential to understand the fundamental differences between an EOR and a contractor:
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?
Before diving into the benefits, it’s essential to understand the fundamental differences between an EOR and a contractor:
This country has a talented and skilled workforce that can offer several benefits. Here are some of the advantages:
Learn why every company should consider Colombian employees for their workforce.
Before hiring employees in Colombia, there are a few important things you’ll need to know.
| Continent | Americas |
| Country | Colombia |
| Capital | Bogotá |
| Time zone | UTC−05:00 |
| Total Time zones | 4 |
| Working hours per week | 48 |
| Working week | Monday–Friday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | 30th April |
| Financial Yea | 1st January to 31st December |
| Date format | dd/mm/yyyy |
| Currency | Colombian Peso (MXN) |
| VAT | The standard rate is 19% |
| EMPLOYERS (% of Gross Salary) | |
|---|---|
| Sickness & Maternity | 8.5% |
| Disability & Death | N/A |
| Retirement | 16% |
| Layoff & Retirement Benefits | 1 month |
| Child Care | N/A |
| Work Related Accidents | According 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 Tax | N/A |
| Others | 9% (SENA 2% ICBF 3% Compensation box 4%) |
| Payroll State Tax | N/A |
| Total Employment Cost | 29.5% plus work related activities according to risk |
| Last update | Q1 2023 |
| EMPLOYEES (% of Gross Salary) | |
|---|---|
| Sickness & Maternity | 4% |
| Disability & Death | N/A |
| Layoff & Retirement Benefits | 4% (plus 1% extra if the income is monthly over 4 minimum salaries to 16 minimum salaries) |
| Total Employee Cost | 8% |
| Last update | Q1 2023 |
| Payroll | |
|---|---|
| Payroll Cycle | Bi-Weekly / Monthly |
| 13th Salary | 1 month |
| Annual Income (COP) | Annual Income (USD) | Percentage |
|---|---|---|
| 0 a 41.424.460 | 0 a 10.811 | 0% |
| 41.424.460 a 64.606.800 | 10.811 a 16.862 | 19% |
| 64.606.800 a 155.816.400 | 16.862 a 40.668 | 28% |
| 155.816.400 a 329.494.680 | 40.668 a 85.998 | 33% |