🇨🇴 Hire in Colombia: cost, rules and best EOR options
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- Employer on-costs: 38–52% of gross salary (on a $60,000 salary, about $82,800–$91,200 total)
- EOR onboarding: Under 5 working days once documents are ready (Deel claim); own entity: 16-28 weeks (Deel claim)
- Probation: Maximum 2 months on indefinite contracts; proportional on fixed-term contracts (Deel).
- Currency: Colombian peso (COP)
- Data confidence: medium, verified 2026-10-05
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What it costs to employ someone in Colombia
Employer on-costs run roughly 38–52% on top of gross salary. Recomputed 5 Oct 2026 as % of base salary. Low (exemption under Art. 114-1 applies: income-tax-paying company, employee under 10 minimum wages): pension 12% + ARL class I 0.522% + Caja de Compensacion 4% = 16.52%; prestaciones: prima 8.33% + cesantias 8.33% + interest on cesantias 12% x 8.33% = 1.0% + vacation accrual 4.17% = 21.83%; total 38.35%, rounded to 38. High (no exemption): pension 12% + health 8.5% + ARL 0.522% + Caja 4% + SENA 2% + ICBF 3% = 30.02%, plus the same 21.83% = 51.85%, rounded to 52 (matches Deel's 51.85%). Employer share of pension+health = 20.5% of the 28.5% combined rate (PwC). ARL up to 6.96% for high-risk work and the transport allowance (COP 249,095) for staff under 2 minimum wages add more. Salaries of 10+ minimum wages lose the exemption. Derived estimate, not a published figure.
| Contribution | Rate | Notes |
|---|---|---|
| Pension (employer share) | 12% | Total pension rate 16%, employee pays 4%; PwC: employer bears ~20.5% of the 28.5% combined pension/health/ARL rate |
| Health (EPS) employer share | 8.5% | Waived under Art. 114-1 for employees earning less than 10 minimum wages when the employer pays corporate income tax (secondary source) |
| ARL (occupational risk) | 0.522%-6.96% | Depends on risk class; Class I office work is 0.522% |
| Caja de Compensacion Familiar | 4% | Family compensation fund, always payable |
| SENA | 2% | Waived under Art. 114-1 for qualifying employees |
| ICBF | 3% | Waived under Art. 114-1 for qualifying employees |
Employee pays about 4% pension and 4% health (PwC: ~8% combined), plus a solidarity fund above 4 minimum wages (not verified) and income tax withholding. Employer pays the rest and files via PILA.
Mandatory benefits
- Prima de servicios: 1 month of pay per year, paid in two instalments
- Cesantias: 1 month of pay per year deposited in a fund, plus 12% annual interest
- Vacation: 15 working days
- Transport allowance for employees earning up to 2 minimum wages (COP 249,095 in 2026, secondary source)
- Dotacion (work clothing) for lower earners, 3 times a year (not verified)
Employment rules at a glance
| Payroll | Monthly or biweekly; social security filed monthly via PILA |
|---|---|
| Probation | Maximum 2 months on indefinite contracts; proportional on fixed-term contracts (Deel). |
| Notice & severance | Dismissal without just cause on an indefinite contract (CST art. 64): indemnity of 30 days' salary for the first year plus 20 days per additional year for salaries below 10 minimum wages; for salaries of 10+ minimum wages 20 days for the first year plus 15 days per additional year (statute as generally described; not fetched). Notification of collective redundancy (10+ workers within 30 days) required. |
| Working time | Standard weekly hours are being reduced in steps (Law 2101 of 2021; 44 hours from July 2025, 42 from July 2026) per general knowledge - not verified from a retrieved source. Overtime surcharges apply. |
| Paid leave | 15 paid working days per year and 18 national public holidays (Deel). |
| Minimum wage | COP 1,750,905 per month in 2026 (+23.7%), plus COP 249,095 transport allowance for staff earning up to 2 minimum wages (total COP 2,000,000); decrees 1469 and 1470 of 2025 per press reports (official decree text not fetched). |
Termination
Employers must pay all accrued prestaciones on exit. Dismissal with cause needs a documented process. Fixed-term contracts need notice of non-renewal (30 days, not verified). Law 2466 of 2025 (published 25 Jun 2025) limits fixed-term contracts to 4 years (then they convert to indefinite), makes the SENA apprenticeship a labour contract and raises the Sunday/holiday surcharge in steps (80% from Jul 2025, 90% from Jul 2026, 100% from Jul 2027).
Employee or contractor in Colombia?
Deel rates misclassification risk as high: employees are entitled to back wages, social security arrears, fines and penalties if a contractor relationship shows subordination, fixed schedule or exclusivity.
Compare contractor vs employee cost →
Hiring through an EOR in Colombia
Direct hiring requires a Colombian entity or branch. Deel claims EOR onboarding in under 5 working days after documents, versus 16-28 weeks for own-entity incorporation and bank account (about COP 163 million in legal, notary and accounting fees per Deel).
Typical onboarding: EOR Under 5 working days once documents are ready (Deel claim); own entity 16-28 weeks (Deel claim). UTC-5 all year, no DST: equal to US Eastern in winter, 1 hour ahead of Eastern in summer, 2 hours ahead of Pacific in summer.
Providers worth shortlisting
| Provider | Best for | EOR pricing | Coverage | |
|---|---|---|---|---|
| Deel | Companies that want one platform for contractors, EOR and a US PEO, with transparent per-seat list prices. | $599 per EOR employee per month (public list price, checked 2026-10-05) | 150+ countries (vendor claim, per Deel's own and third-party descriptions) | Visit Deel |
| Remote | Teams that want a published price for each product (EOR, global payroll, contractors, contractor of record, US PEO) and an affiliate program with 12-month revenue share. | $699 per employee/month (public list price, checked 2026-10-05) | 90+ countries for EOR (vendor pricing page claim) | Visit Remote |
| Rippling | Companies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module. | — | Visit Rippling | |
| Oyster | Distributed teams that want published EOR and contractor prices and a long-running affiliate program with tiered revenue share. | $699 per employee/month (public list price, checked 2026-10-05); annual discounts available; refundable deposit required | 120+ countries EOR; contractors in 180+ countries (vendor claim) | Visit Oyster |
| Papaya Global | Mid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process. | 160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages) | Visit Papaya Global | |
| Multiplier | Cost-conscious teams that want EOR priced below $500 per employee with an annual discount. | Third-party summary of Multiplier's pricing: EOR from $459/employee/month on annual contracts and $499 on monthly contracts (not confirmed; multiplier pricing page returned 403 to our fetch) | — | Visit Multiplier |
| Remofirst | Small teams that want the lowest published EOR starting price and a free contractor tier. | Starting at $199 per person/month (public list price, checked 2026-10-05); 'no hidden fees, setup fees, or minimum contract terms' per vendor page | 185+ countries for EOR (vendor claim) | Visit Remofirst |
| Pebl (formerly Velocity Global) | Companies that want an EOR with a tiered reseller/partner program and are comfortable with a recently rebranded vendor. | Third-party reports a flat $399 per employee/month (not confirmed on vendor page; hellopebl.com/pricing returned 404) | 185+ countries (third-party report) | Visit Pebl (formerly Velocity Global) |
Paying and covering your team in Colombia
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FAQ
What is the total employer cost in Colombia?
Roughly 38%-52% on top of gross salary once prestaciones and social security are included; Deel states 30.5%-51.85%.
What is Article 114-1 exoneration?
Companies paying corporate income tax are exempt from employer health, SENA and ICBF contributions for employees earning under 10 minimum wages.
How much annual leave is required?
15 paid working days per year, plus 18 public holidays.
How long is probation?
Up to 2 months on an indefinite contract.