Colombia: Payroll & Employment Facts
Verified statutory employment facts for Colombia, each with its official source and the date it applies from. This is our reference record. For provider choice and hiring advice, see the Colombia employer-of-record guide and the Colombia country hub.
What is the minimum wage in Colombia?
| National minimum wage |
$1,750,905.00 / month
|
|---|---|
| Next review date |
Not available
|
What employer social contributions apply in Colombia?
Rates are a percentage of gross wage, applied up to the annual contribution ceiling.
| Employer social security rate |
20.50%
|
|---|---|
| Pension |
12.00%
|
| Healthcare |
8.50%
|
| Annual contribution ceiling |
435,000,000 COP
|
| Total employer burden |
16.5 - 36.5%
|
What notice and leave rules apply in Colombia?
Statutory minimum notice the employer must give, by completed length of service.
| Length of service | Employer notice |
|---|---|
| 0+ months | 4 weeks |
| Payment in lieu of notice (PILON) |
Permitted
|
|---|---|
| Minimum annual leave |
15 days
|
| Annual leave includes public holidays |
No
|
| Public holidays per year |
18 days
|
Is 13th-month pay required in Colombia?
None of the following are mandated by statute; they may still arise from a contract or collective agreement.
| Thirteenth-month pay required |
Not available
|
|---|---|
| Profit sharing required |
Not available
|
| Holiday bonus required |
Not available
|
How is severance calculated in Colombia?
| Formula |
For indefinite-term contracts, the indemnity for dismissal without just cause depends on the employee's salary relative to the statutory monthly minimum wage (SMLMV).
1. For employees earning less than 10 SMLMV:
- 30 days of salary for the first year of service.
- 20 days of salary for each additional year of service, calculated proportionally for any fraction of a year.
2. For employees earning 10 SMLMV or more:
- 20 days of salary for the first year of service.
- 15 days of salary for each additional year of service, calculated proportionally for any fraction of a year.
|
|---|---|
| Per-year multiplier |
Tiered system: For employees earning <10 SMLMV, the multiplier is 1 month for the first year and ~0.67 months (20 days) for subsequent years. For employees earning >=10 SMLMV, the multiplier is ~0.67 months (20 days) for the first year and 0.5 months (15 days) for subsequent years. months of pay per year of service
|
| Minimum qualifying tenure |
0 months
|
| Calculation base |
Regular
|
Worked example
An employee with 5 years of service and an annual salary of £30,000 is dismissed without just cause. Assumptions for 20 April 2026: - Exchange Rate: 1 GBP = 5,000 COP - Statutory Monthly Minimum Wage (SMLMV): 1,600,000 COP 1. Convert Salary: - Annual Salary (COP): £30,000 * 5,000 = 150,000,000 COP - Monthly Salary (COP): 150,000,000 / 12 = 12,500,000 COP 2. Determine Applicable Formula: - 10 SMLMV Threshold: 10 * 1,600,000 = 16,000,000 COP - The employee's monthly salary (12,500,000 COP) is less than 10 SMLMV. 3. Apply the '<10 SMLMV' Formula: - First year of service: 30 days of salary - Subsequent 4 years of service: 4 years * 20 days/year = 80 days of salary - Total indemnity: 30 + 80 = 110 days of salary 4. Calculate Final Amount: - Daily Salary: 12,500,000 COP / 30 days = 416,666.67 COP - Total Indemnity (COP): 110 days * 416,666.67 COP/day = 45,833,333.70 COP - Total Indemnity (GBP): 45,833,333.70 COP / 5,000 = £9,166.67