Employer of record in Colombia: cost and rules (2026)

Employing someone in Colombia costs the employer about 34.2% on top of gross salary in statutory contributions and mandatory accruals (of which 17.7% is service bonus (prima de servicios) accrual and severance fund deposit (cesantias) accrual and interest on severance (intereses sobre cesantias) accrual), plus an EOR fee of $199 to $699 per month at providers that publish prices ("from" prices). Example: a gross salary of COP 15,000,000 per month costs COP 20,128,290 per month (about $6,121) before any EOR fee.

Rates checked: 2026-11-14. The employer pays pension, work-accident insurance and family-compensation fund contributions on salary. Health, SENA and ICBF contributions are also due, but a company that files income tax is exempt from them for employees paid below ten minimum wages. On top of that come mandatory service bonus (prima), severance (cesantias) and interest on severance, which the employer must accrue each month. There is no 13th salary as such, and no extra cost for paid vacation. Estimates only, not advice: see the note at the bottom of the page.

Employer contributions in Colombia

Minimum wage: COP 1,750,905 per month. Fixed for 2026 by Decreto 0159 of 19 Feb 2026, a temporary decree issued after the Consejo de Estado provisionally suspended the original Decreto 1469 of 29 Dec 2025 (which set the same amount). The suspension was later lifted, but the Consejo de Estado has not yet ruled on whether the 2026 increase is lawful, so the figure could in theory still change. A transport allowance of COP 249,095 a month (Decreto 1470/2025) is paid on top to employees earning up to two minimum wages. Source: Decreto 0159 de 2026, art. 1 (Colpensiones compilation)

Worked example: COP 15,000,000 gross per month

Contractor, EOR or own entity in Colombia

Contractor

Colombian law presumes that any personal work relationship is an employment contract, and courts look at the real relationship rather than the paper. A contractor who works under instructions, to fixed hours and for one client risks being reclassified, with back payment of social security, bonuses and severance. Ley 2466/2025 repeats the principle that reality prevails over formalities and makes a company jointly liable for the contractors it uses. A true contractor pays their own social security and has no statutory leave or severance. Source: Código Sustantivo del Trabajo, Colpensiones compilation

Own entity

A foreign company can employ staff directly through a Colombian company. The usual form is the simplified stock company (SAS), which is set up by a private document registered with the local chamber of commerce. Figures for set-up cost, timing and minimum capital have not been sourced yet. Source: Función Pública, Gestor Normativo (norma 34130)

Leave, notice, probation and termination

Annual leave: 15 days. 15 working days of paid vacation after each year of service. The salary paid during vacation is part of ordinary pay, so it adds no extra cost.

Public holidays: 19. 18 national holidays under the Ley Emiliani calendar, plus a new one for 9 July created by Ley 2578 of 2026 (observed on Monday 13 July in 2026), which makes 19. A challenge to that law is pending before the Constitutional Court, so the count could change. Source: Código Sustantivo del Trabajo art. 186; Ley 51/1983; Ley 2578/2026 art. 6

Notice

An employer who dismisses without cause does not give notice. It pays compensation instead (see termination). An employee who resigns from an open-ended contract is expected to give 30 days' notice, but no penalty may be agreed for failing to do so. Source: Ley 2466 de 2025 (labour reform), Colpensiones compilation

Probation

A probation period must be agreed in writing and cannot exceed two months. On a fixed-term contract shorter than one year it cannot exceed one fifth of the contract term. Social security and the other payroll costs apply from day one. Source: Código Sustantivo del Trabajo, Colpensiones compilation

Termination

Dismissal without just cause on an open-ended contract carries compensation: for staff paid below ten minimum wages, 30 days of salary in the first year plus 20 days for each later year; for staff paid ten or more, 20 days plus 15 days for each later year. On a fixed-term contract, the employer owes the pay for the rest of the term. Accrued bonus, severance and vacation are also settled. None of this is in the monthly estimate. Source: Código Sustantivo del Trabajo art. 64 as amended by Ley 789/2002 art. 28

What the calculator simplifies

• The calculator assumes the employer is a company that files income tax (persona juridica), so the ten-minimum-wage exemption from health, SENA and ICBF applies. An individual employing fewer than two people pays them.
• The exemption threshold is compared with gross monthly pay. In practice the test uses total pay recognised for the month, and payments that are not salary do not count towards it.
• ARL is fixed at risk class I (0.522%). Real rates run from 0.348% to 8.7% depending on the risk class and the company's record.
• Salary above ten minimum wages may be agreed as an integral salary (minimum 13 minimum wages, which includes a 30% benefits factor). Integral salary has no service bonus, severance or interest, and contributions are paid on 70% of it. This regime is not modelled; the calculator treats every salary as ordinary salary.
• The base limits (floor of one minimum wage, cap of 25) are applied to pension, health and ARL only. SENA, ICBF and the family compensation fund are charged on the full payroll.
• Vacation is not an extra cost in the calculator: the salary paid during leave is already in the monthly salary. Replacement cover is not included.
• The 2026 labour reform (Ley 2466/2025) raises Sunday and holiday pay premiums to 90% from 1 July 2026 (100% from 1 July 2027) and moves the start of night work to 7 pm. The weekly working-hours limit falls to 42 hours from July 2026. These affect staff who work such hours, are not in the monthly estimate and do not change the contribution rates.
• Not included: overtime, night, Sunday and holiday premiums, work clothing for lower-paid staff, sick pay and maternity pay supplements, voluntary benefits, collective-agreement terms, local business-registration taxes, and termination costs.
• Cesantias deposit and interest are shown as monthly accruals, although they are paid once a year.

EOR provider prices

Prices are "from" (starting) prices as shown on each provider's own page, usually per employee per month. What you pay can be higher and depends on country, headcount and contract length. Sorted by price, lowest first; providers that publish no price come last.

Affiliate disclosure: we may join providers' affiliate programmes, so links may become affiliate links. Right now the site has no affiliate links. Order is by published price; ties are listed alphabetically. Read the disclosure.

Calculator for Colombia

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FAQ

How much does it cost to employ someone in Colombia?

On top of gross salary, statutory contributions and mandatory accruals add about 34.2% (of which 17.7% is service bonus (prima de servicios) accrual and severance fund deposit (cesantias) accrual and interest on severance (intereses sobre cesantias) accrual) at a gross salary of COP 15,000,000 per month. That is a total of COP 20,128,290 per month before any EOR fee.

How much does an employer of record cost in Colombia?

Providers that publish a price list charge $199 to $699 per month for EOR plans ("from" prices, checked 2026-11-14). This is on top of salary and the statutory employer costs above. Source

How much paid leave do employees get in Colombia?

Annual leave is 15 days, plus 19 public holidays. Source

What is the notice period in Colombia?

An employer who dismisses without cause does not give notice. It pays compensation instead (see termination). An employee who resigns from an open-ended contract is expected to give 30 days' notice, but no penalty may be agreed for failing to do so. Source

Is there a probation period in Colombia?

A probation period must be agreed in writing and cannot exceed two months. On a fixed-term contract shorter than one year it cannot exceed one fifth of the contract term. Social security and the other payroll costs apply from day one. Source

What are the rules on ending employment in Colombia?

Dismissal without just cause on an open-ended contract carries compensation: for staff paid below ten minimum wages, 30 days of salary in the first year plus 20 days for each later year; for staff paid ten or more, 20 days plus 15 days for each later year. On a fixed-term contract, the employer owes the pay for the rest of the term. Accrued bonus, severance and vacation are also settled. None of this is in the monthly estimate. Source

Sources

Rates checked: 2026-11-14.

• Decreto 0159 de 2026, art. 1 (Colpensiones compilation)
• Ley 797/2003 arts. 5 and 7; Ley 100/1993 art. 20; Decreto 1072/2015
• Ley 100/1993 art. 204 (Ley 1122/2007); Estatuto Tributario art. 114-1
• Decreto 1072/2015 art. 2.2.4.3.5; Decreto 1295/1994 arts. 16-18
• Ley 21/1982 arts. 7 and 12; Estatuto Tributario art. 114-1
• Ley 89/1988 art. 1; Estatuto Tributario art. 114-1
• Código Sustantivo del Trabajo art. 306 as amended by Ley 1788/2016
• Ley 50/1990 art. 99 (12% annual interest on severance)
• Decreto 1470 of 29 Dec 2025, art. 1 (COP 249,095 from 1 Jan 2026)
• Código Sustantivo del Trabajo art. 186; Ley 51/1983; Ley 2578/2026 art. 6
• Ley 2466 de 2025 (labour reform), Colpensiones compilation
• Función Pública, Gestor Normativo (norma 34130)