Hire in Colombia

Colombia

PEO &

Employer of Record

Hire employees remotely in Colombia without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

Spanish

Salary Currency

Colombian peso ($,COP)

Capital city

Bogota

Time zone

UTC -5

EOR in Colombia

from $375/ month

Hire Employees in Colombia

NNRoad provides payroll & employer of record (EOR) services in Colombia to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record (EOR) in Colombia

Employer of Record (EOR) services are for companies who do not have a legal entity in Colombia, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Colombia.

2. Employee Onboarding

We sign a local labor contract with your employees based in Colombia.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Colombia.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll in Colombia

Payroll services are for companies who have a legal entity in Colombia, and want to outsource their salary disbursement, mandatory benefits, income tax filing and mandatory reports.

Employer of Record Status in Colombia

Using an Employer of Record (EOR) to hire employees in Colombia is a legally recognized method that helps companies comply with local employment laws without establishing a local entity. An EOR acts as the legal employer, managing payroll, taxes, benefits, and ensuring adherence to Colombia’s labor regulations, such as those specified in the Colombian Labor Code. This includes managing contributions to the pension fund, healthcare, labor risks, and family compensation funds.

Hiring an Expat with an EOR in Colombia

For hiring foreign expats, an EOR also manages the necessary work visas and permits, ensuring compliance with Colombian immigration laws. This includes handling visa sponsorship and the related legal requirements for employing foreign nationals.

Employee Income Taxes:

Individual income tax rates in Colombia are based on progressive tax brackets.

In Colombia, individuals, including employees, must declare their income to the government. Fiscal residents are taxed on worldwide income, while non-residents are taxed only on Colombian-sourced income. Employers are responsible for withholding income tax from employees’ paychecks.

Tax Brackets:

Sample Calculation

Employer Contribution

Employers in Colombia are obliged to contribute to various social and parafiscal charges, including health insurance (8.5% of the employee’s salary), pension fund (12%), and a risk insurance (ARL) whose rate depends on the company’s risk level. Additionally, employers contribute to the National Occupational Training Service (SENA) at a rate of 0% to 2%, depending on the company’s characteristics​​.

Employee Contribution

Employees in Colombia contribute to their social security, including health insurance (4% of their salary) and pension (4%). These contributions are deducted directly from their salaries by the employers.

Both employers and employees contribute to the social security system, covering health, pension, and risk insurance.

Pension Fund

Healthcare Insurance

Working Hours Per Week

The standard working week in Colombia is 48 hours, usually spread over Monday to Saturday. Laws allow for flexibility in scheduling, with a maximum of 10 working hours per day​.

Overtime

Overtime pay in Colombia is regulated, with rates of 125% for daytime and 175% for nighttime overtime work. The law limits overtime to two hours per day.

In Colombia, employers can terminate employment without just cause, provided they give advanced notice, which varies based on the employee’s payment frequency and length of service. Legal grounds for termination include but are not limited to poor performance, misconduct, and economic reasons.

Severance

Severance pay is calculated based on the employee’s tenure and salary.

Notice Period

The required notice ranges from 8 days for weekly payments to a maximum of 90 days for longer-term employees.

Employment Contract

Probation Period

Annual Leave

In Colombia, employees are entitled to a minimum of 15 paid days of annual leave per year.

Sick Leave

Paid sick leave is provided to employees in Colombia for a duration specified by law. Typically, employees are entitled to 12 paid sick days per year.

Maternity Leave

Maternity leave offers paid time off for new mothers, typically lasting for 14 weeks (98 days), with full pay.

Paternity Leave

New fathers are entitled to paternity leave for a specified period, usually 8 days of paid leave.

Public Holidays

January 1st – New Year’s Day
Date varies – Maundy Thursday
Date varies – Good Friday
May 1st – Labour Day
July 20th – Independence Day
August 7th – Battle of Boyacá
December 8th – Immaculate Conception
December 25th – Christmas Day

Resources

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