Employer of Record in Colombia

An Employer of Record (EOR) in Colombia is a company that legally hires employees on your behalf. This means you can build a team in Colombia without setting up a local entity. The EOR handles all the legal and administrative tasks of employment. You still manage your employees' day-to-day work. An EOR like Rivermate can simplify your global expansion.

How an Employer of Record (EOR) Works in Colombia

Using an EOR to hire in Colombia is a straightforward process. Here’s how it generally works:

1. You Find the Talent. You identify the person you want to hire in Colombia.
2. Choose an EOR. Select an EOR provider with expertise in Colombia.
3. Provide Employee Details. You give the EOR the necessary information about your new hire.
4. The EOR Creates a Compliant Contract. The EOR drafts an employment contract that follows all Colombian labor laws.
5. Onboarding. The EOR onboards your new employee, handling all the necessary paperwork and registrations.
6. Payroll and Administration. The EOR manages payroll, taxes, and benefits, ensuring everything is compliant with local regulations.

Benefits of Using an EOR for Hiring in Colombia

Using an EOR to hire in Colombia offers several advantages. It simplifies the process of expanding your team internationally and helps you stay compliant with local laws.

Here are some of the key benefits:

• Faster Market Entry. You can hire employees in Colombia quickly without the lengthy process of setting up a legal entity.
• Reduced Compliance Risks. EORs are experts in Colombian labor law, which helps you avoid legal mistakes and potential fines.
• Cost-Effective. It is often more affordable to use an EOR than to establish your own entity in Colombia.
• Access to Local Expertise. You can leverage the EOR's knowledge of the local market and regulations.
• Streamlined HR. An EOR handles the administrative burdens of HR, freeing you to focus on your business.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Colombia includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Colombia.

Hiring in Colombia is a great way to tap into a large and skilled talent pool. The workforce is growing, with particular strengths in areas like software development and customer support. But, before you hire, it’s important to understand the local labor laws. They are in place to protect employees and have specific requirements you need to follow.

Employment contracts & must-have clauses

Always use a written contract in Colombia. While verbal agreements can be valid, a written contract provides clarity and protection for everyone. Colombian law recognizes a few main types of employment contracts:

• Indefinite-term: This is the most common type and doesn't have a set end date.
• Fixed-term: This contract has a specific end date and can't be for more than three years.
• Specific project: This contract ends when a particular project is finished.

No matter the type, your employment contracts must include certain clauses to be compliant.

Probation periods

You can include a probation period in your employment contracts. It's a useful way to see if a new hire is a good fit for the role and your company. Here are the key things to know:

• Probation periods must be in writing.
• For indefinite-term contracts, the maximum probation period is two months.
• For fixed-term contracts, the probation period can't be more than one-fifth of the contract's length, with a maximum of two months.

During the probation period, either you or the employee can end the contract without notice.

Working hours & overtime

The standard workweek in Colombia is gradually getting shorter. As of July 2025, the limit is 44 hours per week, and it will be 42 hours by July 2026. Anything beyond these hours is overtime.

• Overtime is limited to two hours per day and 12 hours per week.
• Daytime overtime is paid at 125% of the regular rate.
• Nighttime overtime, between 9 p.m. and 6 a.m., is paid at 175% of the regular rate.

Public & regional holidays

Colombia has 18 public holidays. If an employee needs to work on a public holiday, you must pay them extra.

Here are the public holidays for 2025:

Hiring contractors in Colombia

You can also hire independent contractors in Colombia. This can be a flexible way to get work done, but you need to be careful about worker classification. A contractor is self-employed and has control over how and when they complete their work. They use their own tools and can work for multiple clients.

Misclassifying an employee as a contractor can lead to serious penalties, including back payments for social security and benefits. The key difference comes down to subordination. If you control the person's work, set their schedule, and provide the tools, they are likely an employee in the eyes of the law.

An Employer of Record (EOR) can help you avoid these risks. An EOR can hire employees on your behalf, ensuring everything is compliant with local labor laws. This includes everything from contracts and payroll to benefits and taxes. Using an EOR lets you build a team in Colombia without the need to set up a local entity, saving you time and reducing risk.

Navigating compensation and payroll in Colombia requires a clear understanding of local regulations. You need to know the rules to stay compliant and keep your team happy. This means getting familiar with payment schedules, minimum wage, overtime, and the various taxes and contributions for both you and your employees.

Payroll cycles & wage structure

In Colombia, you typically pay employees monthly. However, paying bi-weekly is also common in some industries.

A unique part of Colombian payroll is the "prima de servicios," a mandatory service bonus. This bonus equals one month's salary per year. You pay it in two installments: the first by June 30th and the second within the first 20 days of December.

Another key component is severance pay, known as "cesantías." You must contribute one month's salary for each year of service into a severance fund for your employee.

Overtime & minimums

The minimum wage in Colombia is updated annually. As of January 1, 2024, the minimum monthly wage is COP 1,300,000. On top of this, employees earning up to twice the minimum wage receive a transportation subsidy.

The standard work week is progressively being reduced to 42 hours by 2026. If an employee works beyond the maximum weekly hours, you must pay overtime. Daytime overtime is paid at a 25% surcharge over the regular hourly rate. Nighttime overtime comes with a 75% surcharge. Work performed at night, even if it is not overtime, has a 35% surcharge.

Employer taxes and contributions

As an employer in Colombia, you are responsible for several contributions to social security and other funds. These are calculated as a percentage of your employee's salary.

Employee taxes and deductions

Employees also contribute to social security from their salaries. You are responsible for withholding these amounts and remitting them to the proper authorities.

In Colombia, your employee benefits package is a mix of required contributions and added perks. The government mandates several types of leave and social security payments. These form the foundation of any competitive offer. Many companies choose to provide extra benefits to attract and retain talent. Understanding both the required and supplemental benefits is key to building a strong team in Colombia.

Statutory Leave

Colombian law provides several types of paid leave for employees.

• Annual Leave: After one year of service, you must provide employees with 15 paid vacation days.
• Maternity Leave: Female employees receive 18 weeks of paid maternity leave. One week is taken before birth and the remaining 17 weeks after.
• Paternity Leave: Fathers are entitled to 8 working days of paid leave.
• Sick Leave: For the first two days of sick leave, you pay two-thirds of the employee's regular salary. Starting from the third day, the social security system covers this payment.
• Mourning Leave: In the event of the death of a close family member, employees get five days of paid leave.
• Voting Leave: You must provide half a day of paid leave for employees to vote in public elections.

Public Holidays & Regional Holidays

Colombia has 18 public holidays. Employees are entitled to paid time off for these days.

Typical Supplemental Benefits

Beyond the legal requirements, many employers in Colombia offer additional benefits.

How an EOR Can Help with Setting Up Benefits

An Employer of Record (EOR) simplifies offering benefits in Colombia. Instead of navigating the complex local laws and regulations yourself, an EOR handles it all.

An EOR will:

• Ensure compliance with all mandatory benefits.
• Administer social security and pension contributions.
• Manage payroll and all required deductions.
• Provide access to competitive supplemental benefits packages.
• Save you the time and resources of setting up a local entity.

Using an EOR allows you to quickly and legally employ workers in Colombia. You can be confident that your team receives all the benefits they are entitled to, while you focus on growing your business.

Ending employment in Colombia involves clear legal steps. The process depends on the type of employment contract and the reason for termination. You must follow specific procedures to avoid legal issues. This includes understanding notice periods, severance pay, and proper documentation for a compliant exit.

Notice periods

Notice periods in Colombia vary based on the employment contract.

• Indefinite-Term Contracts: The law does not require a notice period if you terminate an employee without just cause. However, it is good practice to provide one.
• Fixed-Term Contracts: You must give written notice at least 30 days before the contract expires if you do not plan to renew it. If you fail to do so, the contract automatically renews.
• Termination with Cause: No notice period is required when terminating for a valid, legal reason. The termination is effective immediately once you provide a written letter explaining the cause. However, for certain reasons like poor performance, you must give 15 days' notice.

Severance pay

In Colombia, severance pay is a key part of ending an employment relationship. The amount depends on the contract type, the reason for termination, and the employee's salary.

When you terminate an employee without a just cause, you must pay an indemnity. The calculation for this payment differs based on the employee's contract and salary.

For indefinite-term contracts:

For fixed-term contracts:

If you terminate a fixed-term contract without just cause before its end date, you must pay the employee the salary for the remaining time on the contract.

How Rivermate handles compliant exits

Navigating employee terminations in a different country can be complex. We handle the entire offboarding process to ensure you stay compliant with Colombian labor laws.

Here’s how we help:

• Documentation: We prepare and manage all necessary termination documents.
• Calculations: We calculate all final payments, including severance and any other owed amounts.
• Guidance: We provide clear advice on legal requirements to ensure a smooth and lawful exit.

We manage the details so you can focus on your business.

Navigating visas and work permits in Colombia requires a clear understanding of the local rules. For anyone looking to work in the country, securing the right visa is a must. Colombia has a system where work authorization is part of the visa itself, meaning you don't get a separate work permit. The main visa types for work are the Migrant (M) visa for longer-term employment and the Visitor (V) visa for short-term projects.

Employment visas & sponsorship realities

To get a work visa in Colombia, you generally need a job offer from a company based in the country. This company acts as your sponsor. The most common work visa is the M-5 visa, which is tied to your specific job and employer.

An Employer of Record (EOR) can be your legal employer in Colombia and sponsor your work visa. This is a practical option if your company doesn’t have its own legal entity in the country. An EOR handles the necessary paperwork and ensures you comply with local labor laws.

However, there can be limits. Colombia has visa quotas that might affect an EOR's ability to sponsor foreign nationals. It's important to check the feasibility of sponsorship for your specific situation.

Here are the main visa categories for work:

• Visitor (V) Visa: For short-term work, technical assistance, or specific projects. It can be valid for up to two years, but your stay is limited to 180 days within a 365-day period.
• Migrant (M) Visa: The standard option for most people working in Colombia. It's typically granted for the length of your employment contract, up to three years, and is renewable.
• Resident (R) Visa: For those who have held an M visa for a certain period and want to establish permanent residency.

Business travel compliance

For short-term business trips, you need to follow Colombia's specific rules to stay compliant. Many nationalities, including U.S. citizens, can enter Colombia for business for up to 90 days without a visa. This can be extended for another 90 days.

If you do need a visa for business travel, you would apply for a V visa. This visa is for activities like:

• Attending business meetings
• Negotiating contracts
• Market research
• Participating in conferences

When traveling for business, you cannot receive a salary or any form of payment from a Colombian source. Your activities should be limited to business dealings and not formal employment. Always check the latest requirements before you travel, as regulations can change.