Make employment in Colombia easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Colombia, all in one easy-to-use platform.
The second-most populous country in South America, Colombia is the only country on the continent with beaches on both the Caribbean Sea and the Atlantic Ocean. Colombia is well known for its coffee and its vibrant arts scene. With many public holidays (the second-most in the world, behind only India), plentiful natural resources, and a large population, Colombia is home to expert workers in a variety of important fields.
Capital
Official language
Currency
Population
Cost of living index
GDP real growth rate
Payroll frequency
VAT rate
Ease of doing business
Want to employ workers in Colombia? Companies hiring in Colombia are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Colombia and keep you compliant. Remote can hire, onboard, and pay your Colombia team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Colombia. Sign up now to get started or talk to an expert for more details.
Employment taxes and statutory fees affect both your payroll and your employees' paychecks in Colombia. Note that your employees may be liable for additional local taxes.
Employer
0.00%
Pension Fund
0.00%
Healthcare Fund
0.000% - 8.7%
General Labor Risk Pool
0%
Family Allowance Fund
0%
Colombian Institute for Family Welfare (ICBF)
0%
National Learning Service (SENA)
0.000% - 36.2 %
Total Cost of Employment
Employee payroll taxes
0.0%
Pension Fund
0.0%
Healthcare Fund
0.000% - 8.7%
General Labor Risk Pool
Employee income taxes
0
(Income up to 1090 tax units)
0.0%
(1090 to 1700 tax units + 116 tax units)
0.0%
(1700 to 4100 tax units + 788 tax units)
0.0%
(4100 to 8670 tax units + 788 tax units)
0.0%
(8670 to 18970 tax units + 2,296 tax units)
0.0%
(18970 to 31000 tax units + 5,901 tax units)
0.0%
(31000 tax units and up + 10,352 tax units)
At Remote, we provide tailored benefits to ensure that all Remote employees receive comprehensive coverage from top providers.
Remote’s Global Business Travel Insurance program is crafted to address the unique needs of your team, whether they are embarking on short business trips or traveling extensively throughout the year. With five comprehensive plan options—Basic, Standard, Premium, Premium Plus, and Standard Plus—this program ensures that your team members have the right level of coverage to protect their health, safety, and well-being while traveling for business.
Available in over 90 countries, the program provides extensive global coverage at competitive rates, offering peace of mind no matter where their work takes them. This optional benefit is designed to be flexible, allowing you to offer tailored coverage that meets the diverse needs of your workforce. By providing business travel insurance, you are taking proactive steps to safeguard your team from unforeseen events such as medical emergencies, trip disruptions, or loss of business equipment while they are on the road.
Coverages (values in USD):
Emergency & Accidental Medical: $1,000,000
Repatriation for Medical Treatment: 100% per trip
Emergency Medical Evacuation: $100,000
Repatriation of Mortal Remains: $25,000 per trip
Pre-existing Medical Conditions: For stable pre-existing medical conditions up to $50,000
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Coverages (values in USD):
Excludes Medical & Evacuation
Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips
Personal Liability: $100,000 per trip
Accidental Death & Permanent Total Disability: $100,000 per trip
Loss of Passport: $250 per trip
Legal Expenses: $10,000 per trip
Hijacking: $1,000 per trip
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Coverages (values in USD):
Emergency & Accidental Medical: $1,000,000
Repatriation for Medical Treatment: 100% per trip
Emergency Medical Evacuation: $100,000
Repatriation of Mortal Remains: $25,000 per trip
Pre-existing Medical Conditions: For stable pre-existing medical conditions up to $50,000
Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips
Personal Liability: $100,000 per trip
Accidental Death & Permanent Total Disability: $100,000 per trip
Loss of Passport: $250 per trip
Legal Expenses: $10,000 per trip
Hijacking: $1,000 per trip
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Coverages (values in USD):
Emergency & Accidental Medical: $1,000,000
Repatriation for Medical Treatment: 100% per trip
Emergency Medical Evacuation: $100,000
Repatriation of Mortal Remains: $25,000 per trip
Pre-existing Medical Conditions: For stable pre-existing medical conditions up to $50,000
Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips
Personal Liability: $100,000 per trip
Accidental Death & Permanent Total Disability: $100,000 per trip
Loss of Passport: $250 per trip
Legal Expenses: $10,000 per trip
Hijacking: $1,000 per trip
Cancellation & Curtailment: $2,000 per trip; subject to $100 deductible per Trip *Benefit not available to residents of the USA
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Coverages (values in USD):
Excludes Medical & Evacuation
Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips
Personal Liability: $100,000 per trip
Accidental Death & Permanent Total Disability: $100,000 per trip
Loss of Passport: $250 per trip
Legal Expenses: $10,000 per trip
Hijacking: $1,000 per trip
Cancellation & Curtailment: $2,000 per trip; subject to $100 deductible per Trip *Benefit not available to residents of the USA
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Offering health insurance in this country is not mandatory, but providing these additional health benefits can greatly enhance the healthcare experience for employees by enabling access to a wider range of providers and specialists, as well as significantly reducing wait times. With two comprehensive plans – the Integral Plan and the Integral Plus Plan – designed to cater to diverse needs, with exclusive dental coverage available on the Integral Plus Plan. Learn more about Remote’s health insurance offering below. If you would like more insight into fair equity and benefits best practices, you can download our Global Benefits Guide
here
!
100% coverage without deductibles or limits on medical services.
Unlimited medical and surgical treatment.
Unlimited ICU hospitalization.
Private individual room.
Bed for a companion and nurse for users under 15 and over 65 years old without any limit on days.
Unlimited coverage for all specialties within the hospital without additional charges.
Up to 50 days of psychiatric hospitalization.
Reversible dialysis up to 8 sessions per hospitalization event.
Unlimited prostheses and osteosynthesis material.
Delivery or cesarean section.
Unlimited out-of-network care up to COP 200,000 per visit (less the value of the copayment) for:
Alternative medical consultation (acupuncture, bioenergetics, homeopathy, osteopathy, and chiropractic).
Psychological and psychiatric consultation.
General practitioner and specialist consultation.
Unlimited in-network care:
Direct access to primary care physicians and all specialists.
Direct payment of charges at the doctor’s office.
Clinical laboratory tests without prior authorization.
Unlimited simple and specialized diagnostic exams.
Unlimited therapy sessions.
Nationwide emergency care.
Home medical consultations.
Not covered
Not covered
Medical care and assistance abroad (up to USD 30,000) with prior authorization 24 hours before the trip.
Prosthetics and osteosynthesis materials up to 60 times the legal minimum monthly wage (SMMLV).
Home medical assistance through Emermedica included.
Tele-consultation and telemedicine, including psychological and nutritional telephone counseling: Unlimited in-network.
Cancer treatment includes unlimited commercial oncology medications for chemotherapy, both outpatient and inpatient, as well as adjuvant drugs.
Treatment for HIV/AIDS and its complications.
Telephone counseling and veterinary medicine for pets (5 consultations per year, free of charge).
In-Network Unlimited Access to:
General and specialist doctors
Home consultation
Alternative medical advice
Nutritionist consultation
Psychological and psychiatric consultation
Physical therapy (including home therapy), orthoptics, and pleoptics
Outpatient Medicine:
Coverage from the first day for the supply of medicines after hospitalizations (registered with INVIMA), up to 15 days of treatment with formulations prescribed by a registered doctor.
Available Only on the Integral Plus Plan
In-Network Unlimited Access to:
Preventive care
Dental emergencies
Endodontics
Oral surgery
Periodontics
Orthodontics
Dental rehabilitation
Simple Diagnostic Tests:
Laboratories and radiology tests with unlimited coverage from the first day.
Specialized Diagnostic Examinations:
Unlimited coverage from the first day.
Hospital Private Room
Companion & Nurse:
Bed provided for a companion and nurse for users under 12 and over 64 years old.
Psychiatric Hospitalization:
Coverage for up to 45 days.
At-Home Hospitalization
Medical & Surgical Treatment:
Unlimited coverage.
ICU Hospitalization:
Unlimited coverage.
Additional Hospitalization:
Coverage for coma and brain death scenarios.
Outpatient Emergency:
Unlimited coverage from the first day.
Ambulance Transfer:
Emergency transfers provided via ambulance.
Coverage Includes:
Natural childbirth and cesarean section
Management of pregnancy complications and miscarriage
Pre-natal care and vaccines
Newborn congenital diseases
Cancer Treatment:
Including all necessary oncology medications.
HIV/AIDS:
Treatment and management of complications.
Organ Transplant
Prosthetics and Orthotics
Bariatric Surgery:
For morbid obesity.
Plasma Blood and Its Derivatives
Life Insurance:
Coverage extends to 12 months of the quota for a Colsanitas Integral plan for dependents in the event of the employee's death or permanent disability.
Exequial Benefit:
Comprehensive funeral services provided at no additional cost, alleviating financial and logistical burdens for families.
Travel Assistance:
Medical emergency care available worldwide with coverage up to $35,000 (or €35,000 in the European community) and dental emergency coverage up to $500.
Excludes OFAC-sanctioned countries.
Offering life insurance is not mandatory in this country, but providing these additional benefits can significantly enhance the financial security and peace of mind for employees. The Global Life Insurance offering provides flexible coverage levels ranging from $50,000 to $600,000, tailored to meet the diverse needs and budgets of the company and its employees. This benefit includes two options: The Basic Offering provides Life Insurance coverage. In the unfortunate event of an employee’s demise, their beneficiary will receive a payout equivalent to up to 6 times the employee’s annual salary. However, this compensation is capped at a maximum of the selected cover limit. This means that the payout will not exceed the cover limit applicable, regardless of the employee’s salary. The Comprehensive Offering at Remote combines Life Insurance, Accidental Death & Dismemberment (AD&D), and Permanent Disability (PD) coverage. In cases of accidental death, dismemberment, or a permanent disability, the compensation is equivalent to up to 5 times the employee’s annual salary, subject to a predetermined limit. This compensation is capped at a maximum cover limit provided by Remote. The payout will not exceed the applicable cover limit, regardless of the employee’s salary. It is essential to be aware that in certain countries, insurance premium taxes may be applicable. This means taxes may be due to the company for the monthly premiums paid towards the life insurance coverage for employees. Additionally, life insurance benefits may be categorized as ‘Benefits in Kind’ (BIK). This categorization means that the monthly premiums paid for the life insurance coverage might be counted as part of the employee’s taxable income according to the local tax laws. When life insurance benefits are offered, they must be provided equally to all employees in the respective country.
Provides financial protection and security for beneficiaries after the death of an insured team member.
In the unfortunate event of a team member’s demise, beneficiary compensation cannot exceed 6 times the team member’s annual salary or the chosen cover level (whichever is lower).
Example: See help article for details
Not covered
Not covered
Provides financial protection and security for beneficiaries after the death of an insured team member.
In the unfortunate event of a team member’s demise, beneficiary compensation cannot exceed 6 times the team member’s annual salary or the chosen cover level (whichever is lower).
Offers financial protection to beneficiaries in the unfortunate events of an insured team member's accidental death or dismemberment.
Compensation cannot exceed 5 times the team member's annual salary or the chosen cover level (whichever is lower). The exact payout varies depending on the type of injury sustained, as specified in the Accidental Dismemberment Table.
Designed to offer financial support to insured team members who suffer from either permanent and total or permanent and partial disabilities as a result of an accident or illness.
Compensation cannot exceed 5 times the team member's annual salary or the chosen cover level (whichever is lower). The insurance provider assesses the extent of the permanent disability to determine the final compensation:
Disabilities below 33.33%: No compensation
Disabilities between 33.33% and 66.67%: Compensation calculated as a percentage of the capped amount
Permanent disabilities exceeding 66.67%: Full capped compensation amount
For detailed examples of how the compensation is calculated for Life Insurance, Accidental Death & Dismemberment (AD&D), and Permanent Disability, refer to the help article for details
If you have any questions, please email [email protected].
Offering mental health benefits is not mandatory in this country, but providing the benefit can significantly enhance the emotional well-being and overall productivity of employees. Remote offers a comprehensive employee mental wellbeing platform in partnership with one of the top-rated employee mental wellbeing providers. This platform is available on desktop and mobile apps and includes 1-to-1 therapy with a curated pool of top-quality therapists in over 35 languages. The advanced matching service finds each employee the right therapist within 48 hours, boasting a 98% success rate. Employees receive a personal wellbeing profile with tailored recommendations and information to track progress. The platform also offers a curated self-guided content library with audio mindfulness and meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers. Additionally, there are 24/7 mental health helplines for immediate support when an employee is struggling. Mental health program benefits may be offered to the employees from among 5 different plans. Offering mental health benefits is optional, but it can greatly enhance employee well-being and productivity. It is essential to be aware that in certain countries, mental health benefits may be categorized as ‘Benefits in Kind’ (BIK). This categorization means that the monthly premiums paid for the benefit might be counted as part of the employee’s taxable income according to the local tax laws. When mental health benefits are offered, they must be provided equally to all employees in the respective country.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Not included in the Basic plan
Team members can pay for therapy sessions themselves, if needed.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Includes one pre-paid Therapy/Coaching session per policy year
Team members can pay for extra therapy sessions themselves, if needed.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Includes three pre-paid Therapy/Coaching sessions per policy year
Team members can pay for extra therapy sessions themselves, if needed.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Includes six pre-paid Therapy/Coaching sessions per policy year
Team members can pay for extra therapy sessions themselves, if needed.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Includes twelve pre-paid Therapy/Coaching sessions per policy year
Team members can pay for extra therapy sessions themselves, if needed.
Clients can choose to offer the Wellness & Lifestyle Benefit and select from multiple contribution levels, providing their team members a monthly wallet, which they can use with their virtual card at approved stores, online retailers, or any other approved vendors related to Lifestyle and Wellness benefits. The offered services include:
Physical and mental health support such as gym memberships, fitness classes, therapy, mindfulness apps, and guided meditation.
Lifestyle services like streaming subscriptions (Spotify, Netflix), groceries, and other services that support work-life balance and personal well-being.
Personalized recommendations to help employees select benefits most relevant to their needs.
Platform support for employees needing immediate assistance or guidance on wellness-related concerns.
The available contributions are:
$25 USD
$50 USD
$100 USD
$150 USD
$200 USD
$250 USD
$300 USD
Colombia has a diverse economy with key industries in oil, mining, agriculture, and manufacturing. With specific labor laws and tax regulations, employers in Colombia must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.
Employers in Colombia must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:
Minimum wage: Colombia’s minimum wage is COP 1,300,000 per month.
Payroll frequency: Salaries are generally paid monthly.
Standard working hours: The normal workweek in Colombia is 48 hours, typically spread over five or six days.
Overtime: Employees are entitled to additional pay for overtime work, calculated at 125% of the regular wage for extra hours and 175% for work on Sundays or public holidays.
Personal income tax: Colombia has a progressive income tax system with rates ranging from 0% to 39% depending on income levels.
Employer contributions:
Employee contributions:
Corporate tax: The corporate income tax rate in Colombia is 35%.
Tax reporting: Employers must file payroll taxes and contributions with the Colombian tax authorities regularly.
Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
Employers must stay updated on changes to Colombia’s labor laws and tax regulations to avoid penalties.
Payroll frequency: Salaries are generally paid monthly.
Currency: Payroll in Colombia is processed in Colombian Peso (COP).
Tax reporting: Employers must file payroll taxes and contributions with the Colombian tax authorities.
Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
Payroll compliance: Employers must stay updated on changes to tax rates and reporting requirements.
Managing payroll in Colombia requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.
The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.
Hiring contractors in Colombia can be a strategic and cost-effective way for businesses to complete projects without the obligations of hiring full-time employees. Whether you are engaging independent contractors for specialized services or working with subcontractors for various tasks, understanding Colombia’s labor laws and federal regulations is essential.
Remote helps businesses stay compliant when hiring contractors globally with these key features:
Global compliance support: Ensures adherence to labor laws in 200+ countries with localized contracts and proper documentation.
Misclassification protection: Includes built-in compliance checks and seamless contractor-to-employee conversion.
Centralized documentation: Maintains essential records for audits and automates tax filings.
Legal expertise: Provides guidance on complex local labor laws, simplifying international hiring.
Remote’s streamlined approach minimizes compliance risks and simplifies contractor management for businesses.
Remote simplifies contractor payments with:
Automated processing: One-click approvals, bulk payments, recurring invoices, and real-time tracking.
Global coverage: Payments in 200+ countries, multiple payment methods, and currency flexibility.
Cost and compliance: Fair price guarantee (pay only for active contractors), built-in compliance with regional regulations, and localized contracts.
Learn more about how Remote simplifies contractor management in Colombia — get started for free today.
Our employer of record (EOR) service enables you to hire, manage, and pay top talent in Colombia with speed and simplicity.
Remote’s EOR allows your company to legally hire employees in Colombia without having to set up a local legal entity. On paper, Remote is the official employer, and we handle compliance, payroll, benefits (including equity), and other HR processes — but you maintain full control over the hire’s day-to-day management and work responsibilities. Learn more.
An EOR may be ideal if your company:
Needs to hire employees in Colombia but doesn’t want to establish a legal entity
Is testing local markets before committing to a full business expansion
Wants to ensure full compliance with local employment laws and tax requirements
Needs a fast, cost-effective way to onboard employees in Colombia
Needs a temporary hiring solution before establishing a legal entity
If your company wants to hire talent in Colombia but doesn't have a legal entity there, our EOR provides a fully compliant and efficient solution. Colombia has strict employment and payroll tax laws, and our EOR service ensures you meet these legal obligations while enabling you to grow quickly.
Key benefits of hiring through our EOR in Colombia include:
Faster market entry. You can hire talent quickly, without having to wait months to establish a local entity.
Full compliance with local employment laws. Avoid the legal risks associated with non-compliance and misclassification.
Simplified payroll management. We automate payroll tax calculations and ensure you are fully compliant with all withholding obligations, even when laws change.
Lower costs. Setting up a legal entity in Colombia can be costly and time-consuming. An EOR eliminates the need for entity registration, reducing overhead expenses.
Fewer resources required. With HR, payroll, and compliance managed by the EOR, your company can concentrate on scaling operations and assigning your resources elsewhere.
It’s also crucial to note that, at Remote, we own our own legal entity in Colombia. As a result, we don’t need to rely on third parties, which can incur delays and extra costs, and result in a negative employee experience. All our EOR services — including the dedicated support of our local specialists — are provided in-house.
To learn more — and to see our EOR platform in action — book a demo with one of our friendly experts today.
$699
per employee/month
Engage talent in over 90 countries without opening a local entity
Employee onboarding managed by a dedicated specialist
Local payroll processed and paid punctually, every time
Built-in compliance protections
Localised benefits that are competitive and flexible
Dedicated in-house experts providing local support
HR Essentials included as standard
$29
per employee/month
Robust, transparent international payroll
A straightforward self-service platform
Dedicated specialists providing personalised support
Comply with local payroll regulations in each country
Unified benefits management
HR Core included as standard
$29
per contractor/month
Pay solely for contractors you actively engage with
Collaborate with international contractors
Draft, modify and sign customised, localised contracts
Approve contractor invoices in one click or use auto-pay
Complete transparency of payments with full visibility
HR Core is included as standard
