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Global Expansion Guide

Colombia

Manage and pay your employees easily with BIPO in Colombia and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Colombian Peso (COP)

employment guide_language

Language

Spanish

employment guide_capital

Capital

Bogotá

Employer of Record Colombia

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Colombia

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Employer of Record Colombia

Embark on your business expansion in Colombia with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Colombian market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

This guide was last updated on 24 December 2025. The content in this guide is current as of this date and based on common business practices.

Employment Contract

Employment contracts may be concluded as fixed-term contracts, contracts for the completion of a specific work or task, permanent contracts, or contracts for temporary, occasional, or transitional work. Contracts may be oral or written, subject to the conditions outlined below.

  • Fixed-term contracts must be concluded in writing and may not exceed a maximum duration of four years.
  • Failure to comply with these requirements will result in the contract being deemed a permanent contract.

Oral Employment Contracts

Where an employment contract is concluded orally, the following minimum information must be clearly agreed upon:

  1. Nature and location of the work
  2. Amount, form (e.g. time-based, piece-rate, task-based), and payment cycle of remuneration
  3. Duration of the contract

Written Employment Contracts

Written employment contracts must be executed in multiple copies, with each party retaining one copy. At a minimum, the contract must clearly specify:

  1. Identity and address of both parties
  2. Place and date of signing
  3. Work location and nature of the work
  4. Amount, form, and payment cycle of remuneration
  5. Valuation of housing and food, if provided as part of the salary
  6. Term of the contract, notice period, and termination clauses

Statutory Contributions

Type Base (IBC) Employee Contribution Employer Contribution
Pension

Minimum: 1 x SMLMV

Maximum: 25 x SMLMV

SMLMV (Statutory Monthly Minimum Wage) = COP 1,423,500

 4% 12%
Pension Solidarity Fund

Applicable where the employee’s income exceeds four times the SMLMV.

1%-2%

 N/A
Health Insurance 4% 8.50%
Occupational Risks Insurance N/A

Depending on the degree of occupational risk.

0.522% – 6.960%

Minimum Wage

Effective 1 January 2025, the statutory minimum wage in Colombia is set at COP 1,423,500 per month.

Public Holidays

The public holidays listed below are national public holidays observed across Colombia. Please refer to official government announcements for the latest updates.

  • New Year’s Day
  • Epiphany
  • St. Joseph’s Day
  • Maundy Thursday
  • Good Friday
  • Labour Day
  • Ascension of Mary
  • Corpus Christi
  • Sacred Heart Day
  • Feast of St. Peter and St. Paul
  • Independence Day
  • Battle of Boyacá Day
  • Assumption Day
  • Columbus Day
  • All Saints’ Day
  • Independence of Cartagena
  • Immaculate Conception
  • Christmas Day

Notes:

  • Overtime Compensation for Work on Public Holidays:

    • From 1 July 2025: Overtime will be paid at the employee’s regular wage plus an 80% premium.
    • From 1 July 2026: Overtime will be paid at the employee’s regular wage plus a 90% premium.
  • Exemptions: None.

Working Hours

Category Daily Weekly
General Work 8 Hours

44 Hours

(Reduced to 42 Hours effective mid-2026)
Hazardous Work Working hours may be shortened in accordance with relevant regulations
Adolescents Over 15 and Under 17 Years of Age 6 Hours 30 Hours
Adolescents Over 17 Years of Age 8 Hours 40 Hours
  • Daily Rest: Working hours must be divided into at least two segments, with a rest interval in between. Rest periods are not counted as working time.
  • Weekly Rest: Employees are entitled to at least 24 consecutive hours of paid weekly rest, typically on Sunday, with exceptions for certain special industries.

  • Overtime Compensation:

    • Daytime overtime: Regular wage plus a 25% premium.
    • Nighttime overtime: Regular wage plus a 75% premium.
    • Sunday (mandatory rest day) overtime: Regular wage plus an 80% premium, phased in from 1 July 2025.

  • Exemptions from Overtime Compensation:

    • Position-based exemptions: Employees in managerial, fiduciary, or decision-making roles; employees performing intermittent or non-continuous work; or employees engaged in purely security duties who reside at the workplace.
    • Situation-based exemptions: Circumstances of force majeure, accidents, actual or imminent incidents, or urgent operations involving machines or equipment that cannot be postponed.

Leave

Annual Leave

  • Applicable Employer Type: Single employer.

  • Entitlement:

    • General employees: After completing one (1) year of service, employees are entitled to 15 days of paid annual leave.
    • Employees in private enterprises engaged in tuberculosis prevention, including professionals, assistants, and employees performing X-ray inspection duties: 15 days of paid leave for every six (6) months of service.

  • Accrual and Carryover:

    • Employees must take at least six (6) consecutive days of annual leave each year; these cannot be carried over.
    • By mutual agreement, the remaining leave may be carried over for up to two (2) years.
    • Technical, professional, managerial, or foreign employees working away from their family residence may carry over leave for up to four (4) years.
  • Remuneration: Annual leave is taken with full pay.
  • Cash-out: Up to 50% of accrued leave may be converted to a monetary payment upon employee request, subject to a written agreement with the employer.

Sick Leave

  • Eligibility: Employees in the private sector.
  • Duration: Determined by the employee’s medical condition.

  • Allowance:

    • If incapacity to work is certified, the employee is entitled to employer-paid assistance for up to 180 days:

      • First 90 days: Two-thirds (2/3) of regular wages
      • Remaining period: One-half (1/2) of regular wages
    • For employees without a fixed salary, remuneration is based on the average salary over the preceding year, or the entire period of service if less than one year.

Maternity Leave

  • Eligibility: Employees in the private sector.

  • Duration:

    • 18 weeks total.
    • Additional leave for premature birth, and 2 extra weeks for multiple births or children with disabilities.
    • Prenatal leave: 1 week mandatory.
    • Postnatal leave: Generally 17 weeks, unless otherwise certified by a physician.
  • Allowance: Paid at full salary. For employees without a fixed salary, the average salary rules for sick leave apply.

Other Leave Types

  • Paternity Leave

    • Fathers are entitled to 2 weeks of paid leave, up to a maximum of 5 weeks under applicable law.
    • Applies to biological children, adopted children, or children of a spouse/cohabiting partner.
    • Allowance is paid by the EPS (Health Insurance Institution) and calculated based on contributions made during pregnancy.

  • Shared Parental Leave

    • The first 12 weeks of maternity leave are non-transferable.
    • The remaining 6 weeks may be allocated between parents by written agreement, submitted to the employer with medical certification within 30 days of the child’s birth.
    • Allowance is calculated with reference to maternity leave benefits.

  • Flexible Parental Leave

    • Parents may convert part of maternity or paternity leave into reduced working arrangements (half-day work converted into double leave time).
    • Mothers: from the 13th week of maternity leave.
    • Fathers: from the 2nd week of paternity leave.
    • Requires medical certification, employer consent, and timely documentation.
    • Allowance calculated based on maternity or paternity leave benefits.

  • Miscarriage Leave

    • Female employees who experience a miscarriage or premature infant death are entitled to 2–4 weeks paid leave, with a medical certificate specifying the date and recommended recovery period.

  • Breastfeeding Leave

    • Paid breastfeeding breaks must be granted without salary reduction.
    • First 6 months: Two breaks per day, 30 minutes each.
    • 6 months to 2 years: One break per day, 30 minutes, if breastfeeding continues.
    • Additional breaks granted upon medical certification if required.

  • Bereavement Leave

    • Applicable to all employees.
    • 5 days of paid leave for the death of: spouse, permanent partner, blood relatives within 2nd degree, relatives by affinity within 1st degree, or civil relatives within 1st degree (including adoptive parents/children).

  • Leave for Care of a Seriously Ill Child

    • 10 days of paid leave for employees caring for a minor child with: terminal illness, severe clinical condition from a major accident requiring continuous care, or needing palliative treatment.

  • Statutory Paid Leave (as provided by law)

    Employees may be granted paid leave in the following circumstances:

    1. Exercising the right to vote
    2. Performing mandatory temporary public duties
    3. Serious personal or family emergencies (blood relatives within 3 degrees, relatives by affinity within 2 degrees, civil relatives within 1 degree)
    4. Trade union duties or attending a colleague’s funeral (with timely notice and operational feasibility)
    5. Urgent medical appointments or specialist consultations, including endometriosis-related treatment (with prior certification)
    6. Accompanying a child (as legal guardian) to fulfill mandatory school obligations
    7. Responding to judicial, administrative, or legal summons
    8. Employees commuting by bicycle may, by agreement, be granted 1 day of paid leave every 6 months of service

Termination and Compensation

General Rule

  • Either the Employer or the Employee may unilaterally terminate the employment contract for just cause.
  • The terminating party must state the grounds for termination at the time of termination; no additional grounds may be invoked later.

Termination by the Employer

Grounds for Termination (including, but not limited to):

  1. Fraud committed by the employee at hiring or to obtain benefits or advantages.
  2. Acts of violence, insults, or serious misconduct committed during work.
  3. Serious harm caused by the employee to the employer or its representatives outside working hours.
  4. Intentional damage to company property or gross negligence endangering safety.
  5. Immoral or criminal conduct in the workplace.
  6. Serious breach of employee duties or company rules.
  7. Preventive detention exceeding 30 days, or corrective detention exceeding 8 days.
  8. Disclosure of the employer’s technical or commercial secrets, causing damage.
  9. Serious and sustained underperformance not remedied within a reasonable corrective period.
  10. Systematic failure to comply with contractual or statutory obligations.
  11. Improper conduct disrupting workplace discipline.
  12. Refusal to comply with medical instructions or occupational safety measures.
  13. Inability to competently perform assigned duties.
  14. Acquisition of an old-age or disability pension during employment.
  15. Non-occupational illness or disability expected to last more than 180 days.
  • For items (9) to (15), the employer must provide at least 15 days’ prior written notice.
  • Termination due to illness cannot occur before 180 days and does not exempt the employer from paying statutory compensation, where applicable.

Termination by the Employee

Grounds for Termination (including, but not limited to):

  1. Fraud by the employer regarding working conditions.
  2. Acts of violence or threats by the employer or its representatives.
  3. Coercion to perform unlawful acts or acts contrary to the employee’s beliefs.
  4. Unforeseeable circumstances after contract execution endangering health or safety, where the employer refuses to remedy the conditions.
  5. Malicious conduct by the employer causing harm to the employee’s interests.
  6. Systematic breach of contractual or statutory obligations by the employer.
  7. Unjustified modification of job duties or workplace location.
  8. Serious breach of the employer’s obligations.

Compensation for Unilateral Termination Without Just Cause

  • Fixed-term Contracts:

    • Compensation equals the wages for the remaining term of the contract.
    • For work- or project-based contracts, compensation is at least 15 days’ wages.

  • Permanent Contracts:

    • Monthly salary less than 10 × statutory minimum wage:

      • Up to 1 year of service: 30 days’ wages.
      • Exceeding 1 year: 30 days’ wages plus 20 days for each additional year, calculated proportionally.

    • Monthly salary ≥ 10 × statutory minimum wage::

      • Up to 1 year of service: 20 days’ wages.
      • Exceeding 1 year: 20 days’ wages plus 15 days for each additional year, calculated proportionally.

Statutory Severance Pay

Upon termination, employers must pay statutory severance calculated as:

  • 1 month of salary per year of service, with proportional payment for fractions of a year.
  • Calculation base: Last monthly salary, provided it has remained unchanged in the preceding 3 months.
  • For employees with variable remuneration, the base is the average salary over the preceding year, or over the entire service period if less than one year.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation:
    The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management:
    We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Colombian regulations.
  • Contributions and Taxes:
    Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
  • Compliance with Minimum Wage and Working Hours:
    We guarantee that your employment practices adhere to Colombia’s minimum wage and working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management:
    Implement and manage leave policies that comply with Colombian laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance:
    Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services:
    Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Chile

Unlock your growth potential with BIPO’s Employer of Record service in Colombia. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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