🇨🇴 Hire in Colombia: cost, rules and best EOR options

Growing software, data and customer-support talent in Bogota, Medellin and Cali with strong Spanish and workable English, in a US-aligned time zone.

Last verified 2026-10-05. How we research · Affiliate disclosure

Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked “unverified” needs checking with the provider or a local adviser before you rely on it.
Key facts: hiring in Colombia
  • 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

Get matched for ColombiaCalculate cost

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.

ContributionRateNotes
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 share8.5%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 Familiar4%Family compensation fund, always payable
SENA2%Waived under Art. 114-1 for qualifying employees
ICBF3%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

Employment rules at a glance

PayrollMonthly or biweekly; social security filed monthly via PILA
ProbationMaximum 2 months on indefinite contracts; proportional on fixed-term contracts (Deel).
Notice & severanceDismissal 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 timeStandard 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 leave15 paid working days per year and 18 national public holidays (Deel).
Minimum wageCOP 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

Pricing is global list pricing where public; country-specific quotes may differ. Full “best EOR for Colombia” guide →

ProviderBest forEOR pricingCoverage
DeelCompanies 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
RemoteTeams 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
RipplingCompanies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module.Quote-based / not public—Visit Rippling
OysterDistributed 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 required120+ countries EOR; contractors in 180+ countries (vendor claim)Visit Oyster
Papaya GlobalMid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process.Quote-based / not public160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages)Visit Papaya Global
MultiplierCost-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
RemofirstSmall 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 page185+ 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

Some links are affiliate links. Disclosure.

Get notified when employer costs or rules change

Occasional email: updated country rates, price changes at major providers, new guides. No spam.

Related

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.

Still unverified: Minimum wage decree text (SMMLV COP 1,750,905 and transport COP 249,095 consistent across press, decree not fetched); Weekly hours schedule (44h from Jul 2025, 42h from Jul 2026) from general knowledge; Solidarity fund threshold; Dotacion details; Fixed-term non-renewal notice; Indemnity formula for 10+ minimum-wage salaries (statute not fetched); Art. 114-1 exemption conditions confirmed via DIAN opinions in summary form only; Caja 4% and pension 12% not re-fetched from an official page; Employer-cost range is a derived estimate (arithmetic in note).

Sources

Get matched with a provider →