HR Software for Colombia
Leave Policy
Maternity Leave
Employees are entitled to 126 days of paid vacation. Seven days must be taken before the birth of the child. During this period, the employee receives 100% of his average salary, paid by the employer and reimbursed by social security.
The employee cannot extend the vacation.
Paternity Leave
Employees are entitled to 14 days of paid paternity leave, which must be taken after the birth of the child. During this period, the employee receives 100% of his salary, which is paid by the employer and reimbursed by social security.
The employee cannot extend the vacation.
Parental Leave
Parental leave is not regulated by law in Colombia. However, employees may be entitled to maternity and paternity leave.
Sick Leave
Employees are entitled to up to 540 days of paid sick leave. Depending on the duration, this vacation is paid at different rates and by different payers:
| Period | Pay | Payer |
|---|---|---|
| 0 – 2 days | 66.6% of base salary | Employer |
| 3 – 90 days | 66.6% of base salary | Employer – reimbursement by social security |
| 91 – 180 days | 50% of the base salary | Employer – reimbursement by social security |
| 181 – 540 days | 50% of the base salary | Employer – reimbursement by social security |
If the sick leave was caused by an industrial accident, the employee receives 100% of the basic salary during the leave and the insurance company is responsible for the payment.
Tax & Pay
Minimum Wage Requirements
The minimum wage is COP 1,300,000 per month and the minimum integral salary is COP 16,900,000.
Individual Income Tax
Personal income tax ranges from 0% to 39%. Income tax is calculated at progressive rates. Several additional factors can affect overall rates, such as: B. the household status and the number of children.
| Gross Annual Income | Tax Rate (%) |
|---|---|
| Up to COP 38,812,000 | 0% |
| Up to COP 60,532,000 | 19% |
| Up to COP 145,989,000 | 28% |
| Up to COP 308,713,000 | 33% |
| Up to COP 675,465,000 | 35% |
| Up to COP 1,103,817,000 | 37% |
| Over COP 1,103,817,000 | 39% |
Payroll Cost
The cost to the employer is generally estimated at 30.5% to 51.85% of the employee’s salary.
- Severance payment fund contribution – 8.33%
1. Interest on the severance payment – 1% - Vacation – 4.17%
- Service allowance – 8.33%
- Pension fund – 12%
- Occupational risk – 0.52%
- Family Fund Management (CCF) – 4%
- Social Security, Public Health – 8.5%
- Family fund “ICBF” – 3%
- “SENA” training fund – 2%
- 13. Salary – 1/12 of the total annual salary
- 14. Salary – 8.33%-12% of annual salary
Overtime Pay & Maximum Hours
Overtime pay is mandatory for employees earning less than COP 13,000,000 per month. Hours outside of normal working hours are considered overtime. Employees receive a supplement for additional hours:
- 25% of the hourly rate for a normal working week
- 75% of the hourly rate for night shifts, Sundays and public holidays
- 150% of the hourly rate for night shifts on Sundays and public holidays
Employees who are entitled to overtime pay may work a maximum of two hours of overtime per day and a maximum of 48 hours per week in total.
The standard working hours are eight hours per day and 40 hours per week. The normal working week lasts from Monday to Friday. According to Law 2101 of 2021, the maximum weekly working hours for workers in Colombia must be gradually reduced from 48 to 42 hours over the next few years.
This change will not affect employee salaries and benefits.
The maximum weekly working hours will be reduced on July 15 every year from 2023 to 2026:
- 2023: From 48 to 47 hours.
- 2024: From 47 to 46 hours.
- 2025: From 46 to 44 hours.
- 2026: From 44 to 42 hours.
The reduction in maximum weekly working hours ends on July 15, 2026.
Termination
Termination Requirements
In general, there are 5 ways to legally terminate an employee in Colombia.
- Termination for good cause
- Termination due to layoff or other business reasons
- Resignation
- Mutual termination
- Termination during the probationary period
Notice Period
- Termination for good cause: 10 calendar days
- Termination due to staff reductions or other business reasons: 10 calendar days
- Resignation: None
- Mutual Termination: None
- Termination during the probationary period: As stated in the employment contract
Severance for Employees
Termination for Cause: No legal requirements
Termination due to dismissal or other operational reasons:
For employees with permanent contracts, based on years of service:
≤ 1 year of employment: 30 daily rates
For each additional year of service: 20 daily rates
For employees with fixed-term contracts:
All payments owed for the remaining term of the contract, including monthly salary, 13th and 14th.
*Note: Additional payment may be required to ensure release from possible future claims.
Withdrawal: No legal requirements
Mutual Termination: No Legal Requirements. However, it is recommended to offer a severance package to reduce the risk of a legal challenge to the mutual agreement.
Termination during probation: No legal requirements
Statutory Time Off
Paid Time Off
Both full-time and part-time employees are entitled to 15 workdays of paid time off (PTO) per year. PTO accrues monthly at 1.25 days per month. Employees are entitled to one year after one year of service.
Public Holidays
There are 18 national holidays in Colombia. National holidays include:
- New Year celebration
- Day of the Three Kings
- Saint Joseph’s Day
- Maundy Thursday
- Good Friday
- Labor Day
- Ascension of Christ
- Corpus Christi
- Sacred Heart
- Saint Peter and Saint Paul
- Independence Day
- Battle of Boyaca
- Assumption of the Virgin Mary
- Columbus Day
- All Saints Day
- Independence of Cartagena
- Immaculate Conception Day
- Christmas Day
Onboarding
Onboarding
Onboarding takes 1 working day.
Additional Info
Employment Contract Details
The contracts must be written in Spanish and can be bilingual. They must be in writing and signed by both parties.
A contract must contain:
- Surname
- Start date
- Length of employment
- Job Description
- Conditions for Termination
- Type of contract: permanent or indefinite
Probation Period
Probationary periods are not mandatory. For permanent contracts, the trial period is a maximum of 60 days and for fixed-term contracts, a maximum of 1/5 of the originally agreed term, but a maximum of 60 days.