TheBestEOR

Best Employer of Record in Colombia

Written by Lucia AparicioFact-checked by Michael Ennis
Picture of Lucia Aparicio
Lucia Aparicio

Senior Editor and HRIS Specialist

Our top employer of record in Colombia for 2026 is RemotePeople, from USD 499 per employee a month, ahead of Deel and Rippling.

We tested all 10 providers with paid client accounts, real quotes and a live hire run through payroll. Colombian employers pay the prima service bonus and cesantías severance savings with interest, and the ordinary week is 42 hours from 15 July 2026.

Flag of Colombia

Hiring in Colombia at a glance

Currency
COP
Colombian peso
Pay cycle
Monthly
Staff paid by the day must be paid at least weekly
Working hours
42 hours
Weekly limit from 15 July 2026
Annual leave
15 days
Working days a year, proportional for shorter service
Extra pay
Prima, cesantías
Service bonus and severance savings with interest
Employer costs
Pension, health
Plus injury insurance, payroll levies, some exemptions
Before you hire:
Confirm the weekly schedule stays within 42 hours and ask which payroll exemptions apply.

Country hiring overview · Colombia

Hiring in Colombia, at a glance.

Compare the employment scope and benefit accruals.

For Colombia, I’d ask each EOR to show how the local costs appear on the invoice and how the employee’s salary affects the calculation. Employer contribution rates vary. Some are fixed (pension and family compensation fund), some apply or not depending on the salary range (health, SENA and ICBF), and one depends on the risk level of the position (occupational risk insurance). There are also other obligations besides these contributions: severance pay (cesantías), interest on severance, the service bonus (prima) and paid vacation.

To start hiring in Colombia through an EOR and evaluate providers, ask each one which company will sign the contracts and handle the registrations, and ask them to explain this in detail. Use the same information for every quote, because contribution percentages depend on the salary range and the position. Include benefit accruals and other legal obligations in that budget.

In my experience with hiring and HR in Colombia, understanding Colombian laws was a challenge, especially when regulations changed over time. If you hire an EOR, make sure they understand local laws and can explain them in detail.

Eligibility for health, SENA and ICBF exemptions also depends on the actual employer’s tax status and statutory conditions, not salary alone.

Choose a hiring solution

Need a local employer?

Compare an EOR arrangement for your role before opening your own entity.

Already have a local employer?

Compare payroll and HR support against adding an EOR.

EOR service fee

Fees vary by provider.

Your quote should state the currency, fee per employee, minimum charge and billing commitment.

Onboarding

Paperwork affects the start date.

The contract, right-to-work checks, registrations and payroll deadlines all affect when employment can begin.

Employment costs

Allow for bonus and severance.

Budget for social contributions and amounts set aside for the prima service bonus and cesantías severance pay. Ask the provider to show each calculation separately.

Annual leave

Leave starts after a year.

Employees generally become entitled to 15 working days of paid annual leave once they have completed one year of service.

Check before choosing

Confirm the employment structure, EPS/pension/ARL registrations, benefit calculations, salary currency and termination process.

What your quote should include

Employment costs and service fees

1
Gross salary and agreed pay schedule
2
Social contributions, prima and cesantías accruals
3
EOR fee: currency, per-employee billing, minimums and commitment
4
Setup, foreign exchange, extras and exit costs

Deposits and payroll funding

1
Amount and payment deadline
2
Whether funds are refundable or credited to payroll
3
Release conditions and refund timing
Show these separately from recurring expenses.

Key takeaways for hiring in Colombia

Establish the permitted employment arrangement first

The 2025 reform expressly restricts temporary-service arrangements to the cases the legislation permits and can treat the user company as the true employer where those limits are exceeded. Require an explanation for your actual role and duration.

Price an ordinary salary and an integral salary differently

A qualifying written salario integral arrangement can include specified benefits and premiums in the agreed amount, but vacation remains outside that inclusion. Do not apply the ordinary-salary accrual table unchanged to an integral offer, or assume that an all-in salary removes every additional employment cost.

The contribution exemption belongs to an eligible employer

Earnings below ten monthly minimum wages are only part of the health, SENA and ICBF exemption test. The actual employer must also satisfy Article 114-1 and its conditions. Ask the EOR to identify the exemption it applies and show the result in the employee-specific calculation.

Fixed-term contracts need a renewal calendar

Under the 2025 reform, fixed-term contracts must be written and cannot exceed four years. Existing contracts count that limit from the law’s commencement. The renewal and non-renewal rules also matter, so ask who tracks the current term and the thirty-day notification point before relying on a fixed end date.

Employment conversion does not settle the past

Putting a former contractor on payroll changes the future arrangement. Review the historical engagement and the proposed employment structure as separate matters.

Quick verdict

What is the best EOR in Colombia?

My top three: Deel, RemotePeople and Rippling.

To choose the top 3 EOR providers in Colombia, I consider several factors: price, service quality, complementary services, compliance, integrations and reporting capacity, among others. RemotePeople is first in the global ranking and first for Colombia.

Confirm each provider’s named legal employer, complete country quote and proposed employment arrangement.

1
Deel logo

4.7/5

Deel

Paying employees and contractors on one platform

Starting fee
$599

per employee / month

Countries
130+
where you can hire

Plus a mandatory Employer Liability Cost.

Deposit
1–1.5 months

of gross salary

Deposit refund
Within 60 days

of offboarding

Why consider it

EOR, contractor management and payroll for your own entities.

Month-to-month EOR service pricing available.

Check the fit

Ask for the country-specific Employer Liability Cost in your quote; it is mandatory.

Before signing: Confirm the Employer Liability Cost amount, benefit costs and any additional products. Monthly service terms do not remove employment notice, severance or other exit obligations.

The EOR pricing page lists 130+ countries. Broader platform coverage figures may include other services.

Legal employer in Colombia
✓ Verified on register

Employing entity
Deel Colombia S.A.S., Bogotá
NIT 901448761 · incorporated 2021 · Deel states it is a wholly-owned entity

Local office
Carrera 9 # 71-38, Of. 203, Bogotá D.C.
Register address

Visit Deel ↗

2
Editorial pick
RemotePeople logo

4.9/5

RemotePeople

Hiring in new markets with local HR support

Starting fee
$499

per employee / month

Countries
150+
where you can hire

EOR Select from $199 for eligible hires.

Deposit
1 month

of gross salary

Deposit refund
Within 5 days

of the final payment

Why consider it

Recruitment and EOR services through one provider.

Dedicated account manager in both EOR plans.

Check the fit

Recruitment is separately priced.

Before signing: Confirm quote currency, billing commitment, deposits, funding deadlines and refund terms. EOR Select eligibility depends on the hiring country and employee salary.

Both EOR plans list local contracts, payroll and tax administration, and statutory benefits administration. Salary, employer contributions and benefit costs are separate.

Legal employer in Colombia
✓ Own entity

Employing entity
Own S.A.S., Bogotá
NIT 901694054 · incorporated March 2023

Local office
Carrera 16 # 93-11, Oficina 402, Bogotá D.C.

Visit RemotePeople ↗

3
Rippling logo

4.5/5

Rippling

Setting up payroll, laptops and app access for new hires

Starting fee
$499

per employee / month

Countries
115
where you can hire

Plus the Rippling Platform, from $8 per employee / month.

Deposit
Per quote

based on gross salary

Deposit refund
Per contract

set in your agreement

Why consider it

EOR, payroll, HR records and benefits administration in one platform.

Shared workflows and reporting for domestic and international teams.

Check the fit

Ask for an itemised quote showing the required platform and each HR or IT module.

A paid Rippling Platform subscription is required on top of the EOR fee, from $8 per employee per month plus a monthly base fee. Rippling EOR starts at $499 per employee per month. Other HR and IT products are priced separately.

Rippling’s EOR page lists 115 countries. Confirm your hiring country and legal employer.

Legal employer in Colombia
– Confirm in your contract

Employing entity
Confirm in your contract
No Rippling Colombian entity found on register directories; ask Rippling to name the employer and say whether it is owned or a partner

Local office
Confirm in your quote

Visit Rippling ↗

No provider pays for a position on this page; some outbound links pay a referral fee. See the funding model and methodology.

Provider comparison

All 10 EOR providers for Colombia, side by side

June 2026 list fees are per employee per month.

Before choosing, compare the legal employer, the complete quote for Colombia, support, payroll due dates and visa needs.

In my experience, many Colombian professionals understand local labour laws very well because they have worked as employees before. When negotiating, whether as an employee or a contractor, they compare the benefits and, above all, the total amount they will earn. Bogotá’s working day overlaps with the US East Coast, although the time difference varies with US daylight saving time. For a wider shortlist, browse EOR providers for Colombia.

Provider

Best For

Starting feeDepositOnboarding
1 Deel logo Deel 4.7/5 Rating Paying employees and contractors on one platform Starting fee: $599 USD / monthDeposit: 1–1.5 monthsOnboarding: 3–5 days

My take

Deel offers employee and contractor management in one platform, with contractor management starting at USD 49 per contractor per month.

In my experience, using Deel in Colombia was satisfactory. When hiring contractors, for example, I didn’t have problems with the documents required to start, so onboarding was faster than in other countries, where contractors had extra doubts about the legal documents required and other details.

Deel’s global EOR service starts at USD 599 per employee per month, with month-to-month pricing available. Mandatory Employer Liability Cost is charged separately and varies by country. Salary, employer contributions, benefits and any additional services sit outside the starting service fee.

When this provider fits

I’d shortlist Deel when employees and independent contractors need one administrative platform.

Ask before signing

How does the quote distinguish included benefits, vacation and the Employer Liability Cost for this salary arrangement?

Deposit

1–1.5 months

Entity model

Owned entity

First year, one hire

$7,188 in service fees

Reviewed by Lucia AparicioFact-checked by Michael Ennis

Starting fee

$599

Month-to-month billing. Mandatory Employer Liability Cost is charged separately.

Against the 10 starting fees

$199 lowest$699 highest
2 RemotePeople logo RemotePeople 4.9/5 Rating Hiring in new markets with local HR support Starting fee: $499 USD / monthDeposit: 1 monthOnboarding: 5–9 days

My take

RemotePeople becomes the legal employer through its own Colombian S.A.S. (NIT 901694054-3), based at Carrera 16 #93-11, Oficina 402, Bogotá D.C.

RemotePeople offers recruitment alongside EOR employment. Recruit + EOR recruitment costs 2% of annual salary each month for 12 months, a total of 24% of annual salary. EOR fees and employment costs are additional.

EOR Global starts at USD 499 per employee per month. EOR Select starts at USD 199 for eligible countries and employee salary ranges. Salary, employer contributions and benefits are separate; the proposal sets the applicable plan, billing commitment, deposit and payroll funding terms.

When this provider fits

I’d consider RemotePeople if you want recruitment and employment coordination through one provider. Compare the selected plan’s full Colombia price and the local specialist response when the proposed assignment or pay arrangement needs review.

Ask before signing

Who explains the legal basis of the assignment and signs off the employer’s contribution exemptions?

Deposit

1 month

Entity model

Own entities in core markets

First year, one hire

$5,988 in service fees

Reviewed by Lucia AparicioFact-checked by Michael Ennis

Starting fee

$499

EOR Global. EOR Select starts at $199 where the country and employee salary qualify.

Against the 10 starting fees

$199 lowest$699 highest
3 Rippling logo Rippling 4.5/5 Rating Setting up payroll, laptops and app access for new hires Starting fee: $499 USD / monthDeposit: Per quoteOnboarding: 3–5 days

My take

EOR employees share HR records and workforce reporting with the rest of the organisation. App access and device management are separate products.

Rippling EOR starts at USD 499 per employee per month, plus the required Rippling Platform from USD 8 per employee per month plus a monthly base fee. Billing commitment and optional HR or IT modules are quote-specific.

Deposit

Per quote

Entity model

Own entities and local partners

First year, one hire

$5,988 in EOR fees

Reviewed by Lucia AparicioFact-checked by Michael Ennis

Starting fee

$499

Plus the required Rippling Platform, from $8 per employee per month and a monthly base fee. Confirm the billing terms and selected products.

Against the 10 starting fees

$199 lowest$699 highest
4 G-P logo G-P 4.2/5 Rating Hiring abroad while keeping your existing HR system Starting fee: $599 USD / monthDeposit: 1–2.5 monthsOnboarding: 3–5 days

My take

G-P offers optional visa support, background checks and equity payroll management alongside its employment service. Additional services have their own eligibility and charges.

G-P’s global EOR fee starts at USD 599 per employee per month, with a tailored country proposal. There is no minimum duration for an EOR hire; the client’s billing, cancellation and employee exit terms remain separate contract terms.

When this provider fits

I’d look at G-P for a multi-country procurement process that needs documented local decisions.

Ask before signing

What written Colombia-specific assessment comes with the proposal, and which issues are separately charged?

Deposit

1–2.5 months

Entity model

100+ own entities, plus partners

First year, one hire

$7,188 in service fees

Reviewed by Lucia AparicioFact-checked by Michael Ennis

Starting fee

$599

Confirm the included services and billing terms in your country quote.

Against the 10 starting fees

$199 lowest$699 highest
5 Multiplier logo Multiplier 4.1/5 Rating Managing payroll, leave and expenses in one place Starting fee: $459 USD / monthDeposit: 1+ monthsOnboarding: 6–10 days

My take

Multiplier Core starts at $499 per employee per month on monthly contracts, or $459 per employee per month billed annually.

The dollar currency is not specified. Country variations and compliance add-ons affect the quote. Growth adds integrations, custom reports and open API access. Implementation fees may apply, although the FAQ says setup is free; the quote must resolve that charge.

Deposit

1+ months

Entity model

Own entities and partners

First year, one hire

$5,508 in service fees

Reviewed by Lucia AparicioFact-checked by Michael Ennis

Starting fee

$459

Core plan billed annually, or $499 per month on monthly billing. Confirm the dollar currency.

Against the 10 starting fees

$199 lowest$699 highest
6 Oyster logo Oyster 4.5/5 Rating Using one onboarding process for hires across countries Starting fee: $699 USD / monthDeposit: ~1 monthOnboarding: 8–14 days

My take

Oyster provides a hiring-cost calculator and separately priced benefits and HR advice. People Partner advice costs USD 300 per hour.

Oyster’s month-to-month EOR rate is USD 699 per employee per month. Annual seats are quoted separately. Standard annual billing is prepaid and non-refundable; quarterly or semiannual payment is available at a higher seat price. A seat can be reused for a replacement hire. Salary, employer costs, deposits and optional services are additional.

When this provider fits

I’d use Oyster’s quotation tools to help compare a first Colombian hire, then reconcile the estimate with the actual employer and salary arrangement.

Ask before signing

Does the estimate assume ordinary or integral salary, and which benefit and exemption assumptions change in the final quote?

Deposit

~1 month

Entity model

Own entities and vetted partners

First year, one hire

$8,388 in service fees

Reviewed by Lucia AparicioFact-checked by Michael Ennis

Starting fee

$699

Monthly billing. Annual seats are quoted separately, prepaid and non-refundable.

Against the 10 starting fees

$199 lowest$699 highest
7 Pebl logo Pebl 4.2/5 Rating Hiring people who need visa or relocation support Starting fee: $399 USD / monthDeposit: Per quoteOnboarding: 7–10 days

My take

At onboarding in Colombia, Pebl’s EOR terms require that neither the client nor its affiliates is locally incorporated, owns or controls a local entity, or plans to establish, acquire or reorganise as one.

Later changes must be reported promptly in writing to Pebl, which will work with the client to resolve the resulting issues.

Pebl lists an EOR fee of $399 per employee per month, but the general price does not specify the dollar currency or billing commitment. The country proposal determines availability, any offer period and renewal terms; salary, employer costs and additional services are separate.

Deposit

Per quote

Entity model

Affiliates and local partners

First year, one hire

$4,788 in service fees

Reviewed by Lucia AparicioFact-checked by Michael Ennis

Starting fee

$399

Confirm the country price and billing commitment.

Against the 10 starting fees

$199 lowest$699 highest
8 Papaya Global logo Papaya Global 4.1/5 Rating Comparing payroll costs across countries in one report Starting fee: $499 USD / monthDeposit: 1–2 monthsOnboarding: 7–10 days

My take

Papaya provides an account manager who coordinates payroll, legal, finance and benefits specialists. Employees can also raise tickets through its worker app or WhatsApp.

Papaya’s EOR service starts at USD 499 per employee per month. The country quote must identify the billing commitment and any additional services. Salary and employer costs are separate.

Deposit

1–2 months

Entity model

Partner model; confirm employer

First year, one hire

$5,988 in service fees

Reviewed by Lucia AparicioFact-checked by Michael Ennis

Starting fee

$499

The country quote sets the billing terms. Payroll-only processing is priced separately.

Against the 10 starting fees

$199 lowest$699 highest
9 Borderless AI logo Borderless AI 4.0/5 Rating Getting 24/7 help with overseas payroll and HR Starting fee: $579 USD / monthDeposit: 1.5–3 monthsOnboarding: 7–12 days

My take

A refundable deposit is due before onboarding. Borderless AI’s standard calculation is 1.5 months of gross salary plus employer costs, benefits and platform fees for ACH or three months for wire and other methods, with country variations.

Balances unpaid for 15 days, or more than two late payments during the term, can raise the deposit to six months. Refunds follow account closure and settlement of outstanding balances.

Borderless AI’s standard fee is USD 579 per employee per month. Eligible companies headquartered outside Canada can pay USD 399 on fees billed through 31 December 2026; USD 579 applies from 1 January 2027, including promotional customers. Some countries and employment types are priced separately. Salary and employer costs are additional.

Deposit

1.5–3 months

Entity model

Own entities

First year, one hire

$6,948 in service fees

Reviewed by Lucia AparicioFact-checked by Michael Ennis

Starting fee

$579

Eligible companies headquartered outside Canada can pay $399 on fees billed through 31 December 2026.

Against the 10 starting fees

$199 lowest$699 highest
10 RemoFirst logo RemoFirst ⚠ Trustpilot warning 0.5/5 Rating Making a first overseas hire on a tight budget Starting fee: $199 USD / monthDeposit: About 1 monthOnboarding: 6–10 days

My take

We moved RemoFirst to last place on 8 November 2026: Trustpilot has suspended its rating for a breach of its guidelines and removed fake reviews.

RemoFirst says it works exclusively with vetted in-country partners. Here, that means a local partner company, not RemoFirst, would normally employ your hire, and payroll changes, questions and exits pass through both companies, which can slow answers. US$199 is RemoFirst’s starting fee and varies by country, so get this country’s quote before you compare. RemoFirst’s free contractor tier covers administration, including contract management and identity checks. Contractor payments cost USD 25 per contractor in months when a payment is processed; payment-provider and transfer fees may also apply.

RemoFirst’s global EOR fee starts at USD 199 per employee per month, with no minimum contract term or employee count. The country fee, deposit, payroll funding and add-ons depend on the proposal. Salary and employer costs are additional.

Deposit

About 1 month

Entity model

Partners, not own entities

First year, one hire

$2,388 in service fees

Reviewed by Lucia AparicioFact-checked by Michael Ennis

Starting fee

$199

RemoFirst advertises no minimum contract term or employee count. Confirm any country-specific charges.

Against the 10 starting fees

$199 lowest$699 highest

Pricing note (26 September 2026). Confirm billing terms, deposits, the employing entity, immigration fees and start dates, then recalculate the budget using your quote.

Choosing a provider in Colombia

If your company is growing steadily, has the budget and needs to integrate payroll with other HRIS or systems, I’d put Deel first as a consolidated provider. If the budget is more limited, I’d also consider RemotePeople. Compare its current Global and Select plans: Global starts at $499; Select starts at $199 where country and employee-salary conditions apply. It also lets you manage recruitment with the same provider, priced separately. If you already use Rippling for other purposes, you could ask for an EOR quote.

Colombia is an attractive market for hiring globally because it is nearshore to the US and it is a large market where you can find valuable professionals.

Get your EOR discount

Get up to 30% off eligible EOR service fees. Your quote confirms the discount and terms.

Employment framework

Employment and payroll in Colombia

Register the hire for social security before payroll.

A Colombian hire needs a local employment contract, social-security enrolment and a calendar for payroll and statutory benefits. Immigration permission is a separate step for a foreign hire.

Colombian employment contract

The EOR’s Colombian entity becomes the legal employer on a contrato de trabajo governed by the Codigo Sustantivo del Trabajo, as amended by Law 2466 of 2025, the labor reform now phasing in through 2026 and 2027. You direct the work. The EOR handles the employment relationship, monthly PILA remittance, retencion en la fuente and the prima and cesantias payment calendar.

Before choosing a provider: confirm the named local legal employer and its registrations in the country proposal.

Ask which legal arrangement supports the assignment

Before comparing onboarding estimates, ask the provider to describe the arrangement it proposes for this job: the employer, the client’s role, the work being supplied and the legal basis for that structure. A certificate showing an S.A.S. exists is useful identity evidence, but does not answer those questions.

Law 2466 strengthened rules on temporary-service companies. A user cannot extend the same need beyond the permitted conditions by simply switching to another temporary-service company; exceeding the limits can lead a court to identify the user as the true employer. Separately, the Labour Code contains contractor and intermediary rules, including circumstances in which obligations are shared.

The proposal should explain why its particular structure fits a permanent software role, a temporary replacement or a defined project. Where the explanation depends on a specialist local assessment, obtain that assessment before treating payroll setup as approval to start.

PILA, tax withholding and statutory benefits

Social-security enrolment and PILA

The EOR enrols the employee with a health-promotion entity (EPS), a pension fund (a private AFP or the public Colpensiones), and an occupational-risk insurer (ARL), and registers and pays all of it through a single electronic form, the Planilla Integrada de Liquidacion de Aportes, or PILA. PILA bundles health, pension, ARL and the parafiscales into one monthly remittance.

Tax and statutory-benefit accruals

The EOR also withholds retencion en la fuente, the income-tax advance, accrues prima de servicios and cesantias, and pays the 12 percent annual interest on cesantias.

Usual salary schedule

Salaries are commonly paid twice a month, on or around the 15th and the last day, which is the market norm in Colombia.

Confirm work-visa sponsorship eligibility

For a foreign hire, ask the named Colombian employer to confirm the applicable immigration route, including whether the proposed arrangement qualifies for an M-type Migrant work visa.

Confirm the permitted employment model and any required registrations separately.

Resolve permissions before confirming the start

1

Agree the offer and employee details

Confirm salary, the intended start date and the candidate’s details, including the cedula.

2

Confirm immigration and the employment file

For a foreign hire, agree the applicable visa and Migracion Colombia registration steps, including the cedula de extranjeria where required.

The EOR prepares the Spanish contrato de trabajo, collects bank details and handles EPS, pension-fund and ARL enrolment and PILA reporting.

3

Set the statutory payment calendar

Include salary, monthly PILA contributions, prima payments in June and December, and the cesantias and interest payments. You approve timesheets and expenses where relevant and manage the work.

Employer cost

Statutory employer contributions in Colombia

Earnings affect which employer charges apply.

All figures as of 2026. The monthly contribution load is about 16 percent for a typical hire under ten minimum wages and about 30 percent above it, before the separate prima and cesantias accruals and before the EOR fee.

Fig. 2 · Where the ~30% goes: employer contributions as a share of gross

Contribution Employer rate Basis / note System
Contribution
Pension
Employee also pays 4%
Employer rate
12%
Basis / note
On salary; ceiling 25 minimum wages
System
AFP / Colpensiones
Contribution
Health (EPS)
Employee also pays 4%
Employer rate
8.5%
Basis / note
Exemption may apply below 10 SMMLV where the actual employer qualifies under Tax Statute Article 114-1 and the relevant conditions are met
System
EPS
Contribution
ARL (occupational risk)
Five risk classes
Employer rate
0.522% – 6.96%
Basis / note
By job risk class; office roles at the lowest band
System
ARL insurer
Contribution
Caja de compensacion (CCF)
Family compensation fund
Employer rate
4%
Basis / note
Always due, no parafiscal exemption
System
Caja / PILA
Contribution
ICBF
Child welfare
Employer rate
3%
Basis / note
Conditional exemption below 10 SMMLV: the actual employer must qualify under Tax Statute Article 114-1
System
ICBF / PILA
Contribution
SENA
Vocational training
Employer rate
2%
Basis / note
Conditional exemption below 10 SMMLV: the actual employer must qualify under Tax Statute Article 114-1
System
SENA / PILA

Fig. 3 · Mandatory employer contributions in Colombia, 2026 rates

Under Law 1607 of 2012, a legal-entity employer that pays corporate income tax, which an EOR is, does not pay the 8.5 percent employer health, the 3 percent ICBF or the 2 percent SENA for any employee earning under ten monthly minimum wages, about COP 17,509,050 in 2026. So for the typical hire the employer’s monthly contributions are pension 12 percent, ARL from 0.522 percent for an office role, and the caja de compensacion 4 percent, roughly 16.5 percent. Cross the ten-minimum-wage line and those three parafiscales switch back on, taking the monthly load to about 30 percent. On top of either figure sit the deferred benefits below.

Deferred benefits

Prima de servicios, cesantias and the accruals

Budget for the prima and cesantías as they accrue.

Colombia’s prestaciones sociales are the largest hidden cost a first-time employer misses. They are not part of the monthly contribution percentages above; they accrue on top and are paid on a fixed calendar. Together they add roughly 22 percent to base pay once vacations are counted, about 18 percent from prima, cesantias and its interest alone.

Benefit Amount When it is paid Accrual on base
Benefit
Prima de servicios
13th-month, two payments
Amount
1 month of salary per year
When it is paid
Half by 30 June, half in first 20 days of December
Accrual on base
~8.33%
Benefit
Cesantias
Severance-savings fund
Amount
1 month of salary per year
When it is paid
Deposited to employee's fund by 14 February
Accrual on base
~8.33%
Benefit
Interest on cesantias
Law 50 of 1990
Amount
12% per year on the cesantias balance
When it is paid
Paid to the employee by 31 January
Accrual on base
~1%
Benefit
Vacations
15 working days/year
Amount
15 paid working days per year
When it is paid
Taken or accrued; 6 days must be consecutive
Accrual on base
~4.17%

Fig. 4 · Prima, cesantias, interest and vacations · roughly 22 percent on top of base pay, on a fixed calendar

Prima de servicios is Colombia’s mandatory 13th-month payment: half a month’s salary by 30 June and half by the first twenty days of December, totalling one month over the year. Cesantias is a parallel benefit of one month per year that the employer deposits into the worker’s chosen cesantias fund by 14 February each year, where it sits as a savings buffer the employee can draw for housing or study, or on termination. On top of the cesantias the employer pays the worker 12 percent annual interest, the intereses a las cesantias, directly by 31 January. Law 2466 of 2025 added a written-agreement option: employer and worker can voluntarily agree to pay that interest monthly, at 1 percent of the liquidation base, instead of the single 12 percent annual payment. The obligation itself stands either way. The transport subsidy and most fixed allowances feed the salary base used to calculate prima and cesantias, which is why they raise the true accrual a little above the headline percentages.

An EOR runs this entire calendar for you. A first-time foreign employer running payroll alone is most likely to miss these dates or misapply the salary base, which is the practical argument for using an EOR in Colombia even for a citizen hire.

Working time & leave

Working hours, the 2026 reform and statutory leave

Check night work and Sunday premiums for the shift.

Law 2101 of 2021 is cutting the work week to 42 hours, while Law 2466 of 2025 moves the night-shift window earlier and raises the Sunday surcharge in steps. These are the rates as they stand in 2026, with the phase-in dates noted.

Hours and surcharges

Standard week (from 15 Jul 2026) 42 hours
Night-shift premium
window now 7pm–6am
+35%
Overtime (day) +25%
Overtime (night) +75%
Sunday / holiday (from Jul 2026) +90%
Public holidays/yr 18

Fig. 5 · Hours and surcharges, 2026 rates · the week falls to 42 hours by 15 July 2026; the Sunday surcharge rises in steps

The work week falls to 42 hours by 15 July 2026, down from 44, with the monthly salary unchanged, completing the Law 2101 of 2021 phase-down. From 25 December 2025 the night-shift premium window starts at 7pm rather than 9pm under Law 2466, so more evening hours carry the 35 percent surcharge. The Sunday and holiday surcharge rises in steps from 75 percent to 100 percent: 80 percent from July 2025, 90 percent from July 2026, and 100 percent from July 2027. Colombia observes 18 public holidays a year, many moved to the following Monday.

Statutory leave

Annual leave
after 1 year
15 working days
Sick leave
up to 180 days
2/3 through day 90; 1/2 days 91–180
Maternity 18 weeks
Paternity 2 weeks
Bereavement 5 working days

Fig. 6 · Statutory leave entitlements · 15 working days’ annual leave after a full year, at least 6 of them consecutive

Annual leave is 15 working days after a full year of service, of which at least 6 must be taken consecutively. For ordinary illness, the statutory benefit is two-thirds of the calculation salary for the first 90 days and one-half for days 91–180, subject to the minimum-wage floor. The employer normally pays the first two days and the EPS pays from day three. Longer incapacity follows separate rules. Maternity leave is 18 weeks fully paid, with one week mandatory before the due date; paternity is 2 weeks. The prima de servicios above is the mandatory 13th-month payment, so unlike many countries the bonus is statutory, not customary.

Ending employment

Probation, notice and severance in Colombia

Salary and tenure affect the dismissal payment.

There is no notice period for indefinite contracts, but dismissal without just cause triggers a statutory indemnizacion that scales with salary and tenure. The 2025 reform tightened the disciplinary process the employer must document first.

Salary band First year Each additional year
Under 10 minimum wages 30 days' salary +20 days' salary
10 minimum wages or more 20 days' salary +15 days' salary
Fixed-term contract Salary for the remainder of the agreed term

Fig. 7 · Indemnizacion for dismissal without just cause · scales with salary band and tenure

Colombia has no at-will employment. An indefinite contract carries no notice period as such, but ending it without just cause obliges the employer to pay the indemnizacion above, pro-rated for part-years, on top of the final liquidacion of accrued prima, cesantias, interest and unused vacation. A dismissal with just cause must follow documented due process, which Law 2466 of 2025 strengthened by requiring a written disciplinary procedure and the chance for the worker to respond; if the employer cannot prove the cause, a labor judge can order the indemnizacion regardless. Probation is capped at two months on an indefinite contract, and a probationer still cannot be dismissed arbitrarily once the period ends.

Dismissal without just cause, 3-year employee on COP 6,000,000/month Under 10 SMMLV band · daily salary = COP 200,000
Indemnizacion, first year
30 days × COP 200,000
COP 6,000,000
Indemnizacion, years 2 and 3
20 days/yr × 2 yrs = 40 days × COP 200,000
COP 8,000,000
Accrued cesantias (final year)
~1 month salary outstanding for the year
COP 6,000,000
Pro-rated prima + unused vacation
Half-year prima + ~7 days leave
COP 4,400,000
Indicative exit cost
Indemnizacion COP 14,000,000 + liquidacion
COP 24,400,000

Fig. 8 · Dismissal without just cause, 3-year employee on COP 6,000,000/month · indemnizacion plus the final liquidacion

At COP 6,000,000 the employee is under the ten-minimum-wage threshold, so the indemnizacion uses the 30-plus-20-days formula, here COP 14,000,000 for three years. The liquidacion adds the cesantias, pro-rated prima and any unused vacation that would be owed at exit in any case. The total excludes the cesantias and prima already deposited or paid in prior years. The termination across jurisdictions guide lines Colombia’s exit bill up against other markets.

Payroll & tax

Payroll cycle and income tax in Colombia

Pay runs twice a month. PILA filings are monthly.

Income tax on salary is collected through retencion en la fuente, a withholding advance the employer deducts each pay run against the employee’s projected liability and reliefs. Colombia’s personal income tax is progressive, rising to a 39 percent top marginal rate, and the worker reconciles it in an annual return; many lower-paid employees fall below the withholding floor. The EOR computes the retencion each cycle and remits it to the DIAN, the national tax authority, alongside the social-security and parafiscal contributions filed through PILA by their monthly deadline.

Payroll usually runs twice a month, on or around the 15th and the last day, which is the Colombian market norm, though the law also allows monthly pay. The currency is the Colombian peso (COP), roughly COP 3,200 to one US dollar as of July 2026; the peso strengthened through the first half of the year, so re-check the live rate before setting a budget. The minimum wage for 2026 is COP 1,750,905 a month, set by Decree 1469 of 2025, plus a transport subsidy of COP 249,095 (Decree 1470) for workers earning up to two minimum wages. Prima, cesantias and the cesantias interest follow their fixed June, December, February and January calendar rather than the regular payroll dates.

Two payroll points catch foreign employers.

First, electronic payroll, the nomina electronica, is mandatory: every payroll document must be reported to the DIAN in a defined XML format for the employer to deduct payroll as a cost, so the EOR’s payroll system has to generate compliant nomina electronica filings as well as pay the worker.

Second, the salario integral option lets employers and high earners agree a single all-in salary of at least ten minimum wages plus a 30 percent prestacional factor, which can include the benefits and premiums specified in a qualifying written agreement; vacation remains separately protected and employer contributions still need to be calculated; it suits senior hires but does not remove the pension, health and ARL contributions. An EOR handles both; a first-time employer running payroll alone often misses the nomina electronica requirement entirely.

Compare compensation packages on the same salary basis

Ask for separate calculations when a senior candidate is comparing ordinary salary with salario integral. The latter requires a qualifying written agreement and a statutory minimum structure. Article 132 specifies items that may be included and expressly excludes vacation.

Have each offer show the agreed gross pay, the items already included, the remaining employer contributions and vacation treatment. Then compare annual compensation and total employer cost. Adding the ordinary-pay prima and cesantías percentages again to a valid integral package could double-count items; removing every accrual would miss the vacation distinction.

The contribution-exemption analysis remains separate. Article 114-1 turns on the employer’s eligibility and the worker’s earnings, so the explanation should identify why the quoted contribution lines apply.

The employment contract

Contract requirements and contract types

Check which terms belong in the Spanish contract.

The contrato de trabajo is normally written in Spanish, the working language Colombian courts apply, and the EOR supplies it. It must set out the particulars of employment: the parties, the role, the salary and pay frequency, the place of work, the hours, and the contract type and term. A written contract is required for a fixed-term hire and for the salario integral arrangement; an indefinite contract can in principle be verbal but is always documented in practice, and the EOR issues a written one regardless.

Colombia recognises several contract types: the contrato a termino indefinido (indefinite), the contrato a termino fijo (fixed-term, renewable but with limits), the contrato de obra o labor (for a defined task), and the contrato de prestacion de servicios, a genuine commercial services contract for independent contractors that carries no employment benefits. Law 2466 of 2025 made the indefinite contract the express default and constrained the chaining of fixed-term and obra-labor contracts, so a fixed term repeatedly renewed for permanent work can be reclassified as indefinite.

The contrato de prestacion de servicios is where misclassification risk concentrates. It is legal for a genuinely independent contractor, but under the primacia de la realidad principle a labor judge looks past the contract label to the facts: if the worker takes orders, keeps fixed hours and works exclusively for you, the judge can deem the relationship an employment one and award back pension, health, prima, cesantias and interest plus penalties. A properly structured employment arrangement changes how the worker is engaged going forward. Earlier classification exposure and the legal suitability of the new staffing arrangement still need their own assessment. The misclassification guide covers the tests Colombian courts apply.

Division of responsibility

What the EOR handles, and what stays with you

Review any earlier contractor relationship separately.

The actual employment relationship and staffing structure still matter, including any earlier contractor engagement.

Employer of record in Colombia diagram showing the service agreement, employment contract, and day-to-day collaboration between your company and the employee.
Employer of record in Colombia: how your company, the local employer and the employee work together. Select the image to enlarge.

The EOR handles

1
Legal employership on its Colombian entity, with every liability the Codigo attaches to it
2
Day one: the contrato de trabajo in Spanish, plus EPS, pension-fund and ARL enrolment
3
Every month: the PILA remittance, retencion en la fuente withholding and the DIAN nomina electronica filing
4
Parafiscales to the caja, ICBF and SENA where due, applying the Law 1607 exemption
5
The deferred-benefit calendar: prima in June and December, cesantias interest by 31 January, the deposit by 14 February
6
Statutory leave administration through the year
7
At the end: compliant offboarding, the documented just-cause case and the final liquidacion

You keep

1
The daily work: tasks, priorities and the standard they must meet
2
Every pay decision, from the starting salary to bonuses and allowances
3
Hiring calls and exit calls, and the timing of both
4
Performance management, including the paper trail a just-cause dismissal will need
5
Sourcing the laptop and tooling, unless you buy device provisioning as an EOR add-on
6
The commercial relationship, and the IP-assignment wording that goes into the contrato

They do not settle the earlier contractor relationship or remove the need to assess whether the staffing arrangement is legal and compliant. The tests judges apply are set out in the misclassification guide.

Work permits

The M-type work visa and salary thresholds (2026)

Which Colombian employer can sponsor the visa?

Colombia sorts its visas into three classes: Visitor (V), Migrant (M) and Resident (R). A foreign employee on a local contract takes the M-type Migrant work visa, and only a Colombian entity can sponsor it.

Visa Who it is for Salary requirement (2026) Sponsor
Visa
M (Migrant): worker
Who it is for
Foreign employee on a Colombian contract
Salary requirement (2026)
No flat statutory floor; sponsoring employer evidences qualifying income
Sponsor
Colombian entity employer
Visa
V (Visitor)
Who it is for
Short stays, some remote/contractor work
Salary requirement (2026)
Varies by sub-category
Sponsor
Self or host
Visa
R (Resident)
Who it is for
Long-term residents, after qualifying time
Salary requirement (2026)
Not salary-based
Sponsor
Self

Fig. 9 · Colombia’s visa classes for a working hire · the M-type is the work visa, and only a Colombian entity can sponsor it

The M-type Migrant visa is the standard work visa for a foreign national employed on a Colombian contract. It is employer-sponsored, so the EOR’s Colombian entity must act as sponsor. Resolution 5477 of 2022, the visa framework, sets no flat salary floor for the worker. The income test attaches to the employer: a legal-entity sponsor shows average monthly income of 100 minimum wages, and the ten-minimum-wage version of the rule applies only to a natural-person employer. The visa is processed by the Ministry of Foreign Affairs (Cancilleria), after which the holder registers with Migracion Colombia for a cedula de extranjeria within fifteen days.

For a Colombian citizen or permanent resident, no visa applies and the ranking turns purely on price and service.

Salary benchmarks

Indicative salary ranges

Compare gross monthly salary in Colombian pesos.

Monthly gross in pesos with a USD equivalent at roughly COP 3,200 to the dollar (July 2026). Ranges are indicative 2026 market data from Glassdoor, SalaryExpert and PayScale Colombia; verify current pay for the specific role, city and seniority before setting an offer.

Check current pay data for the role and location before you make an offer.

Role Gross COP/month USD/month (approx)
Role
Software engineer
Gross COP/month
COP 6,000,000–12,000,000
USD/month (approx)
$1,875–3,750
Role
Senior software engineer
Gross COP/month
COP 11,000,000–18,000,000
USD/month (approx)
$3,440–5,625
Role
Product manager
Gross COP/month
COP 8,000,000–17,000,000
USD/month (approx)
$2,500–5,310
Role
Accountant
Gross COP/month
COP 3,500,000–7,000,000
USD/month (approx)
$1,095–2,190
Role
Customer support
Gross COP/month
COP 2,200,000–4,000,000
USD/month (approx)
$690–1,250
Role
Sales manager
Gross COP/month
COP 6,000,000–13,000,000
USD/month (approx)
$1,875–4,060
Role
HR manager
Gross COP/month
COP 6,500,000–12,000,000
USD/month (approx)
$2,030–3,750
Role
Designer
Gross COP/month
COP 4,000,000–8,000,000
USD/month (approx)
$1,250–2,500

Fig. 10 · Role salary benchmarks for Colombia, 2026 · Glassdoor, SalaryExpert and PayScale data; USD at roughly COP 3,200 to the dollar

Salaries cluster in Bogota and Medellin; Barranquilla, Cali and smaller cities run roughly 10 to 20 percent below the capital for the same role. Note that a senior engineer at COP 14,500,000 sits below the ten-minimum-wage line of about COP 17,509,050, so the employer keeps the Law 1607 exemption on health, ICBF and SENA.

Fully-loaded cost

What a Colombian engineer costs per month

See the costs on COP 8 million gross a month.

The salary is below ten minimum wages. Monthly contributions and deferred accruals are calculated separately. For a different salary, estimate employer payroll costs in Colombia.

Software engineer, Bogota Gross base: COP 8,000,000/month
Gross salary COP 8,000,000
Pension (12%) COP 960,000
ARL (0.522%, office risk class I) COP 41,760
Caja de compensacion (4%) COP 320,000
Health, ICBF, SENA
Assumes exemption below 10 SMMLV and an employer qualifying under Article 114-1
COP 0
Prima + cesantias + interest + vacations
~21.83% accrued monthly
COP 1,746,400
EOR fee, cheapest
RemoFirst from $199 ≈ COP 636,800
⚠ Trustpilot warning: rating suspended for a breach of its guidelines; fake reviews removed
COP 636,800
Monthly total, cheapest fee
Annual ≈ COP 140,460,000 (about $43,890)
COP 11,704,960

Fig. 11 · Fully-loaded monthly cost, software engineer in Bogota · deferred accruals lift the load to roughly 38 percent on top of gross

Statutory employer cost is about COP 3,068,000, roughly 38 percent on top of gross once the deferred prima and cesantias accruals are included, even with the health, ICBF and SENA exemption applied. At the illustration’s exchange rate, these hypothetical USD monthly service fees change the modelled total: a USD 599 service fee (≈ COP 1,916,800) lands at COP 12,984,960/month (≈ COP 155,820,000/year), and a USD 699 service fee (≈ COP 2,236,800) lands at COP 13,304,960/month. Peso-dollar conversions use the July 2026 rate of about COP 3,200. The deferred benefits are why the fully-loaded figure runs so far above the headline 16 percent contribution rate.

EOR vs your own entity

EOR or your own SAS: compare costs

Factor EOR Your own SAS
Factor
Setup cost
EOR
None
Your own SAS
Camara de Comercio registration + legal fees
Factor
Time to first hire
EOR
3–14 days
Your own SAS
Registration, RUT, bank account and PILA setup come first
Factor
Per-employee cost
EOR
$199–699/employee/mo fee + statutory
Your own SAS
Statutory only, plus shared overhead
Factor
Ongoing admin
EOR
Provider runs payroll, PILA & nomina electronica
Your own SAS
Local accounting, payroll/PILA administration and applicable DIAN electronic payroll support
Factor
Compliance liability
EOR
On the EOR
Your own SAS
On you and your legal representative

Fig. 12 · Illustrative EOR-versus-entity comparison; the crossover depends on the fee plan, local operating costs and hiring duration.

Annualising an illustrative $199 monthly starting service fee gives about COP 7,600,000 at the example’s July 2026 exchange rate. That is the service-fee component, not the complete premium over employing through your own entity. Constitution itself is quick: Colombian corporate-law firms quote one to three business days for the Camara de Comercio registration and roughly COP 500,000 to 1,500,000 and up all-in, scaling with declared capital through the 0.7 percent registry tax, and a revisor fiscal only becomes mandatory above 5,000 minimum wages in gross assets or 3,000 in income. The standing overhead is where the money goes. Accounting, the DIAN nomina electronica filing and in-house PILA processing recur every month whether you employ one person or twenty, and the legal representative carries the compliance liability personally.

Compare complete current quotes using the EOR vs entity break-even guide. A common path is to hire the first few through an EOR, then stand up a SAS and transfer staff once the team passes the break-even and you have committed to Colombia long-term.

FAQ

EOR in Colombia: common questions

What is the best EOR in Colombia?

RemotePeople is our top pick for Colombia in 2026 (4.9/5), followed by Deel (4.7/5) and Rippling (4.5/5). We opened paid accounts with all 10 providers on this page, priced real hires and ran payroll.

RemotePeople offers recruitment and EOR through one provider, with a dedicated account manager on both EOR plans. Its EOR Global plan starts at USD 499 per employee per month, and EOR Select at USD 199 where the hire qualifies. Deel starts at USD 599 plus a mandatory Employer Liability Cost; Rippling starts at USD 499 plus its required platform subscription.

How does an employer of record work in Colombia?

An employer of record in Colombia becomes the worker’s legal employer through a local employing entity, while your company directs the day-to-day work. The EOR handles the employment relationship, the monthly PILA social-security remittance, retencion en la fuente income-tax withholding and the prima and cesantias payment calendar.

How fast can an EOR onboard an employee in Colombia?

Estimated onboarding times for Colombia range from 3 to 14 days across the providers we tested. By provider: Deel 3–5 days, Rippling 3–5 days, G-P 3–5 days, RemotePeople 5–9 days and Oyster 8–14 days.

Request a dated plan for the contract, social-security setup, the candidate’s documents and the first payroll cutoff. State whether the hire already has permission to work in Colombia. If a new visa is needed, do not treat the provider’s administrative onboarding estimate as a visa-processing estimate.

How much does an EOR cost in Colombia per month?
Published service fees for Colombia run from USD 199 to USD 699 per employee per month across the 10 providers we tested: RemoFirst from USD 199; RemotePeople Global from USD 499, or Select from USD 199 only where country and salary qualify; Deel from USD 599 plus mandatory Employer Liability Cost; G-P from USD 599; Oyster USD 699 on monthly billing, with annual seats quoted separately. Multiplier Core advertises $499 monthly or $459 per month billed annually; Pebl advertises $399, with currency and commitment to confirm. Rippling starts at USD 499 plus its required platform from USD 8 per employee, and Papaya Global at USD 499. Borderless AI is USD 579 standard, with an eligible USD 399 promotion on fees billed through 31 December 2026. All amounts are per employee/month; salary and employment costs are separate. On top of the fee you pay the gross salary plus mandatory benefits. For a worker earning under ten minimum wages the employer pays pension 12 percent, ARL from 0.522 percent and the caja de compensacion 4 percent monthly, plus accrued prima, cesantias, interest on cesantias and vacations, because legal-entity employers are exempt from the 8.5 percent health and the SENA and ICBF parafiscales under Law 1607.
What employer contributions are mandatory in Colombia?
Pension at 12 percent, health at 8.5 percent, ARL occupational-risk insurance from 0.522 to 6.96 percent by risk class, and parafiscales of 4 percent to the caja de compensacion, 3 percent to ICBF and 2 percent to SENA. Legal-entity employers paying corporate income tax are exempt from the 8.5 percent health and the SENA and ICBF parafiscales for employees earning under ten monthly minimum wages, under Law 1607 of 2012. Separately the employer accrues prima de servicios, cesantias, 12 percent interest on cesantias and paid vacations.
What are prima de servicios and cesantias in Colombia?
They are mandatory deferred benefits on top of salary. Prima de servicios is a 13th-month payment equal to one month of salary per year, paid in two halves, the first by 30 June and the second in the first twenty days of December. Cesantias is a severance-savings benefit of one month of salary per year worked, deposited into the employee’s chosen fund by 14 February, and the employer also pays the employee 12 percent annual interest on that balance by 31 January. Together they add roughly 18 percent on top of base pay, before the separate vacation accrual that takes the full deferred load to about 22 percent.
What changed under Colombia's 2026 labor reform?
Two statutes drive the changes. Under Law 2101 of 2021 the legal work week falls to 42 hours by 15 July 2026, down from 44, the final step of a phase-down running since 2023. Law 2466 of 2025, the labor reform, moved the night-shift premium window to start at 7pm instead of 9pm from 25 December 2025, so more evening hours carry the 35 percent night surcharge, and it raises the Sunday and holiday surcharge from 75 percent toward 100 percent, reaching 90 percent in July 2026 and 100 percent in July 2027. The reform also sets the indefinite-term contract as the default and tightens disciplinary process for dismissals.
What is the minimum wage in Colombia in 2026?
COP 1,750,905 per month, plus a transport subsidy of COP 249,095 for workers earning up to two minimum wages, set by Decrees 1469 and 1470 of 2025 and effective 1 January 2026; the salary decree survived a brief Consejo de Estado suspension that was revoked in July 2026. That is about COP 2,000,000 a month combined, or roughly USD 625 at about COP 3,200 to the dollar. The transport subsidy is added to the salary base for prima and cesantias but not for social-security contributions.
How much severance applies when terminating in Colombia?
For dismissal without just cause on an indefinite contract, an employee earning under ten minimum wages receives 30 days of salary for the first year plus 20 days for each additional year, pro-rated. An employee earning ten minimum wages or more receives 20 days for the first year plus 15 days for each additional year. This indemnizacion is separate from the cesantias, prima and accrued vacation owed in the final settlement, the liquidacion. Dismissal must follow documented due process under the 2025 reform.
What currency and payroll cycle does Colombia use?
The Colombian peso (COP). Payroll usually runs twice a month, on the 15th and the last day, which is the market norm, though the law also allows monthly payroll. Social-security and parafiscal contributions are filed and paid through the single PILA electronic form each month. Prima is paid in June and December, cesantias interest by 31 January and the cesantias deposit by 14 February. About COP 3,200 equals one US dollar as of July 2026.
Can an EOR sponsor a work visa in Colombia?

The M worker category is for employment with a Colombian legal entity and requires supporting documents from that employer; its work permission is restricted to the approved role, entity or activity.

Ask whether the proposed legal employer can meet the requirements for your candidate and will sign the supporting documents. Request the application scope, charges and start-date conditions.

Can I convert a Colombian contractor to an EOR employee?
Yes. Conversion is how you get ahead of the primacia de la realidad test: a Colombian contractor on a contrato de prestacion de servicios who works fixed hours under your direction can be deemed an employee by a labor judge, exposing you to back pension, health, prima, cesantias and interest plus penalties. An EOR issues a compliant local employment contract, enrols the worker in health, pension and ARL through PILA, and runs the deferred benefits, usually within a week or two. See the contractor misclassification guide.
 
Do I need a SAS to hire one person in Colombia?

No. An EOR employs the worker on its Colombian entity, so you hire without incorporating a Sociedad por Acciones Simplificada. A SAS of your own brings registration first, then ongoing accounting and monthly PILA and DIAN filings for as long as it exists.

Annualise the selected service fee for the hires you expect to keep, then compare it with the SAS setup, accounting, PILA/payroll administration and benefit accruals. Count setup costs over the same hiring horizon and include payroll, benefits, transition and exit charges on both sides. A higher service-fee plan moves the financial crossover earlier; lower recurring entity overhead or a longer hiring horizon can do the same. Short hiring duration, setup costs and the need for local administration can move it later.

Sources and as-of dates

Article references

Checked June 2026. Where a rate is mid-phase-in (the 42-hour week, the Sunday surcharge), the bullet carries the date the next step lands.

Hiring facts Checked 2 Oct 2026

Hiring facts

Checked 2 October 2026
Eligibility, local and collective rules apply. EOR fees extra.

Codigo Sustantivo del Trabajo 5 sources

The Código Sustantivo del Trabajo, as amended by Law 2101 of 2021, sets a 42-hour ordinary working week from 15 July 2026 following the phase-in from 2023. Law 2466 of 2025, sanctioned on 25 June 2025, makes the night-work window 7pm–6am from 25 December 2025. The rest-day and public-holiday surcharge is 90% from 1 July 2026 and reaches 100% on 1 July 2027; employers may apply 100% earlier. The reform also establishes indefinite contracts as the general rule, while retaining other contract types allowed by the legislation, and strengthens disciplinary due process, with specified exceptions to the full procedure.

Employer social security 4 sources

Base pension contributions are 12% employer and 4% employee. Health contributions are 8.5% employer and 4% employee, subject to the employer exemptions described below. Employer-paid ARL contributions have initial rates from 0.522% to 6.960% across risk classes I–V; these are initial class rates, rather than the full statutory minimum-to-maximum range. Apply the relevant contribution base and the employer’s assigned risk classification.

Parafiscales 3 sources

Standard employer parafiscal rates are 4% for the caja de compensación, 3% for ICBF and 2% for SENA. Article 114-1 of the Tax Statute, added by Law 1819 of 2016, exempts qualifying companies and other legal entities that file income-tax returns from employer health, ICBF and SENA contributions for employees earning less than 10 monthly legal minimum wages. Eligibility and statutory exceptions must be checked; the exemption does not remove the 4% family-compensation contribution.

Prima de servicios 1 source

Prima de servicios is 30 days of salary per year: half payable no later than 30 June and half within the first 20 days of December. It accrues proportionately for shorter periods worked, under article 306 of the Código Sustantivo del Trabajo.

Cesantias and interest 4 sources

Cesantías generally equal one month of salary per year, proportionate for a partial year. Under the annualized regime, the previous year’s balance is deposited in the employee’s fund before 15 February. Annual interest of 12%, or the corresponding proportionate amount, is normally paid directly to the worker by 31 January. Law 2466 of 2025 also permits a written agreement to pay interest monthly at 1% of the applicable liquidation base.

Leave 4 sources

Ordinary paid annual leave is 15 working days after one year of service. The general maternity entitlement is 18 weeks; the statutory paternity baseline is two weeks, subject to the law’s extension and parental-leave rules. For certified ordinary illness, the standard benefit is two-thirds of the applicable salary base for the first 90 days and half for days 91–180, with the legal minimum-wage floor. The employer normally covers the first two days and the EPS covers days 3–180, subject to eligibility; this is not an absolute limit on protection for longer incapacity.

Termination indemnizacion 1 source

For an indefinite contract terminated without just cause, article 64 generally provides: below 10 monthly legal minimum wages, 30 days’ salary for service up to one year plus 20 days for each additional year; at 10 minimum wages or more, 20 days for service up to one year plus 15 days for each additional year. Additional-year fractions are paid proportionately. Fixed-term, project and transitional cases have different rules.

Minimum wage 2026 4 sources

The 2026 monthly minimum wage is COP 1,750,905, originally set from 1 January by Decree 1469 of 2025. Decree 1470 sets a COP 249,095 transport allowance for eligible workers earning up to two monthly minimum wages. Following the February suspension of Decree 1469, interim Decree 159 of 2026 maintained the same wage amount. On 17 July 2026, the Consejo de Estado announced that it had revoked the suspension order; this was not a final judgment on the decree’s legality.

Work visa 2 sources

The M worker visa under article 74 of Resolution 5477 of 2022 is for employment with a legal-person employer in Colombia. Requirements include a signed contract summary, the employer’s explanation of the hire, and four months of employer bank evidence showing average monthly income of 100 legal minimum wages. Article 74 does not specify a separate visa-specific employee salary floor; ordinary wage law and the visa’s other conditions still apply. Permission is restricted to the authorized role, entity or activity.

Income tax (retencion en la fuente) and nomina electronica 5 sources

Resident individuals are subject to progressive income-tax rates up to 39% under article 241 of the Tax Statute. Payroll withholding is calculated separately under article 383 using the applicable taxable base and table. DIAN’s electronic payroll support document is required for obligated income-tax taxpayers that need to substantiate qualifying employment costs and deductions; it is not an unconditional requirement for every employer.

Salary benchmarks 3 sources

Salary benchmarks are indicative estimates attributed to Glassdoor, SalaryExpert and PayScale. Compare matching roles, seniority, location, pay period and base-versus-total compensation before relying on them. Any dollar equivalents calculated at approximately COP 3,200 to USD 1 should be treated as illustrative conversions, not as a particular July 2026 observation or monthly average.

Provider fees, entity status and estimated onboarding times 10 sources

Sources checked in October 2026 Checked 19 Oct 2026

Colombia — Law 2466 of 2025 — Articles 6, 44 and 45: fixed-term limits, contractor solidarity and temporary-service restrictions. Checked 19 October 2026.

Colombia — consolidated Labour Code — Articles 34–35 on contractors/intermediaries and Article 132 on integral salary, including the vacation exclusion. Checked 19 October 2026.

DIAN — Tax Statute, Article 114-1 — Employer status and employee earnings conditions for health, SENA and ICBF exemptions. Checked 19 October 2026.

Use the directory to compare EOR providers for Colombia, or see the country guides for another market. The EOR cost calculator totals the recurring USD amounts from each proposal.

 

This guide is for general information only and does not provide legal, tax, accounting, or financial advice. For advice about your business, consult a qualified professional familiar with the rules where you hire. The research methodology explains how TheBestEOR assesses sources.