Employment Cost Calculator for Colombia
Calculate your complete hiring costs for Colombia employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate (Employer Contribution) | Base |
|---|---|---|
| Pension | 12% | Monthly Salary |
| Health | 8.5% | Monthly Salary |
| Professional Risks (ARL) | 0.522% - 6.96% (depending on risk) | Employee's Salary (capped at 25x monthly minimum wage) |
| Parafiscal Contributions (SENA, ICBF, Family Compensation Fund) | 4% or 9% (exemptions may apply for salaries below 10x minimum wage) | Employee's Salary |
Filing & Compliance
- Social security and parafiscal contributions are due monthly via the PILA system; deadlines vary by employer's tax identification number (NIT).
- Income tax withholding (Retención en la Fuente) must be reported and paid monthly to DIAN; deadlines vary by employer's NIT.
- Annual information returns (Medios Magnéticos) detailing payments and withholdings are typically due in the first few months following the tax year.
Income Tax Brackets
| Income Range (UVT) | Tax Rate |
|---|---|
| 0 - 1,090 | 0% |
| 1,090 - 1,700 | 19% |
| 1,700 - 4,100 | 28% |
| 31,000 and up | 39% |
(UVT value is COP 49,799)
Employee Contributions
| Deduction Type | Rate | Cap |
|---|---|---|
| Social Security | 10% | |
| Pension Contributions | 4% | Employees earning over four minimum legal monthly salaries contribute an additional 1% to the pension solidarity fund. |
| Health Contributions | 4% |
Personal Allowances
- Mortgage interest paid in Colombia: up to 1,200 UVT annually.
- Healthcare expenses for taxpayer, spouse, and children: up to 16 UVT monthly.
- Dependant deduction: 10% of gross labor income, up to 32 UVT monthly.
