Hire in Colombia
Republic of Colombia — 52 million population, $6,630 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Colombia.
Capital
Bogota
Currency
Colombian Peso (COP)
Languages
Spanish
Time zones
UTC-5 (COT)
Hiring overview
- Typical time to hire
- 2-3 weeks for contractor, 3-5 weeks for full-time
- Entity requirement
- Colombian entity (SAS is the preferred structure) or branch registration.
- EOR available
- Yes — from $399/employee/month through a Corpshore entity
- Contractor of record
- Yes — from $39/worker/month
Employment law
- Standard workweek
- 42 hours (reduced from 48 under 2023 reform, phasing to 42 by 2026)
- Maximum weekly hours
- 42 hours
- Minimum annual leave
- 15 working days per year
- Public holidays
- 18 per year
- Maternity leave
- 18 weeks, fully paid
- Paternity leave
- 2 weeks, fully paid (increased from 8 days in 2023)
- Notice period
- 15 days for fixed-term; no statutory notice for indefinite (severance applies)
- Severance
- Cesantias: 1 month salary per year. Interest on cesantias: 12% annually. Premium: 1 month salary per year (paid in June and December halves).
- Probation
- 2 months
- Overtime rules
- 25% premium (daytime), 75% premium (nighttime). Sunday/holiday work: 75% premium.
Tax overview
- Income tax range
- 0% to 39%
- Corporate tax
- 35%
- Social contributions
- Employer: ~22% (pension, health, ARL, parafiscales). Employee: ~8%.
- VAT / GST
- 19% (standard); 5% reduced; 0% on basics
- Tax year
- Calendar year (Jan-Dec)
- Treaty network
- Growing network (~15 treaties); recent additions include UK, France, India
Compliance landscape
- Worker classification
- Contrato de prestacion de servicios exists for genuine contractors. Courts apply the primacy of reality principle: if the relationship looks like employment, it is, regardless of contract label.
- Data protection
- Ley 1581 de 2012. Superintendencia de Industria y Comercio (SIC) enforces. Registration of databases required.
- Right to work
- Cedula de extranjeria and work visa required for foreign workers. Employers must register the contract with the Ministry of Labour.
- Non-compete
- Enforceable only if compensated and limited in time (typically up to 5 years for commercial, shorter for employment).
- Collective bargaining
- Protected under the constitution. Union density is moderate. Pactos colectivos (employer-initiated agreements) exist alongside union-negotiated conventions.
Payment rails
ACH Colombia handles interbank transfers. Nequi and Daviplata (mobile wallets) are widely used for smaller amounts. Wise supports COP payouts.
Key considerations for hiring
- Workweek reduction from 48 to 42 hours is phasing in through 2026
- Colombia has 18 public holidays, among the highest globally
- Medellin and Bogota are major Latin American tech hubs with growing startup ecosystems
- Prestaciones sociales (mandatory benefits) add ~52% on top of base salary
Business and cultural context: Colombia
Business culture
Warm, hospitable, and relationship-focused. Tinto (coffee) is offered at every meeting. Hierarchy matters but is softening in tech and startup culture. Punctuality expectations are more relaxed than in Chile or Brazil.
Key industries
Talent pool strengths
Historical context
Colombia's 2023 labour reform was the first major update to its Codigo Sustantivo del Trabajo in decades, reducing the workweek and expanding parental leave. The country has positioned itself as Latin America's leading nearshore tech destination, with Medellin hosting one of the continent's largest tech conferences (Colombia 4.0).
Ready to hire in Colombia?
Use our EOR service from $399/month and we handle employment law, payroll, tax and compliance in Colombia for you.