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Last updated: August 7, 2026
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.
Calculate Employment Costs
Employment Cost Breakdown
Select a country and enter a salary to see the employment cost breakdown
Employer Tax Contributions
| Tax Type | Rate (Employer Contribution) | Base |
|---|---|---|
| Pension | 12% | Monthly Salary |
| Health | 8.5% | Monthly Salary |
| Professional Risks (ARL) | 0.348% - 8.7% (depending on risk) | Employee's Salary (capped at 25x monthly minimum wage) |
| Parafiscal Contributions (SENA, ICBF, Family Compensation Fund) | 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% |
| 1,091 - 1,700 | 19% |
| 1,701 - 4,100 | 28% |
| 4,101 - 8,670 | 33% |
| 8,671 - 18,970 | 35% |
| 18,971 - 31,000 | 37% |
| 31,001 and up | 39% |
(UVT value is COP 52,374)
Employee Contributions
| Deduction Type | Rate | Cap |
|---|---|---|
| Social Security | 4% | |
| 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.
Written by
Lucas Botzen
Lucas Botzen is the Founder of Rivermate, a global employment platform that helps companies hire, employ, and manage talent internationally. Since founding Rivermate in December 2020, he has focused on building practical solutions that simplify international payroll, benefits, taxes, contracts, and employment compliance for remote teams. Before Rivermate, Lucas co-founded and co-directed Boloo, an e-learning and software company that helped entrepreneurs start and grow e-commerce businesses. He scaled Boloo to more than €2 million in annual revenue before successfully exiting the business in 2020. Lucas holds a Bachelor’s degree in Business Innovation from Avans University of Applied Sciences. His background in entrepreneurship, technology, automation, and remote work continues to shape his approach to making global employment simpler and more human.
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