Hire in Colombia

Colombia PEO &

Employer of Record

Hire & manage teams 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)

Payroll tax

21.02% - 27.46%

Payroll Cycle

Monthly

Time zone

UTC -5

Capital city

Bogota

Hire Employees in Colombia

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

Hiring with NNRoad

Pay as you go

No set-up or overhead costs to global expansion.

One P.O.C.

One point of contact for all your EOR employees.

Compliance

Ensured compliant contracts and operations.

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 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.

01.

Candidate Selection

You interviews & select the candidates you want to hire in Colombia.

02.

Employee Onboarding

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

03.

Compliance & Payroll

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

04.

Payroll Reporting

See all payroll reports on our platform & focus on your business in Colombia.

Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.

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

On-boarding and off-boarding employees following labor law practice.

Complete payroll solution and benefit administration

Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.

Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.

Payment management (Invoicing customers/clients and vendor payments).

Work VISA application assistance, if needed.

Local individual income tax reporting.

Payroll & PEO in Colombia

Professional Employment Organization (PEO) services are for companies who have a legal entity in Colombia, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

01.

Compliance & Payroll

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

02.

Payroll Reporting

See all payroll reports on our platform & focus on your business in Colombia.

Registering the necessary company and personnel information for payroll calculation in the payroll software and system

Monthly Payroll Processing

Year-End Adjustment and Annual Declaration

Taxes & Payroll in Colombia

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 Costs in Colombia

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.

Benefits & Insurance in Colombia

Pension Fund

Healthcare Insurance

Working Hours in Colombia

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.

Termination Laws in Colombia

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 in Colombia

Employment Contract

Probation Period

Types of Leaves in Colombia

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 in Colombia

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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