Employer of Record (EOR) Services in Colombia

Employer of Record

From
$299/month

Contractor of Record

$249/month

Talent Sourcing

2% of gross salary / month

Start hiring in Colombia

SIMPLE, COMPLIANT HIRING WITH HORIZONS EOR

Hire in Colombia

Horizons provides compliance solutions to ensure your business in Colombia operates in line with Colombia labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Colombia in a range of industries, from customer service, to accounting services, to software development. We also process monthly payroll, and, as an Colombia Employer of Record, absorb all local employer liabilities. Partnering with our Colombia EOR is the quickest and most cost-effective way to enter the Colombia market. Note, a Colombia Employer of Record is also known as a Colombia Professional Employer Organization (PEO).

Facts & Stats

stay compliant with Colombia labor laws

Employment Laws

Colombia employment contracts

It is not completely necessary to have an employment contract in Colombia, but we strongly recommend that you provide a written contract for every employee. Contracts should be written in Spanish and include details of the employment such as compensation, vacation leave, and so on. Any references to money should be in the local currency of the Colombian peso.

Fixed-term

Indefinite

Working hours in Colombia

The typical working week in Colombia is 48 hours long, spread over five or six days. Overtime is paid at a rate of at least 125% of normal pay, or 175% for night shifts.

Holiday Schedule in Colombia [2025]

Colombia has a range of national public holidays that are celebrated annually. In 2025 these holidays are:

Date	Holiday name
1 Jan 2025	New Year’s Day
6 Jan 2025	Epiphany
24 Mar 2025	Saint Joseph’s Day
17 Apr 2025	Maundy Thursday
18 Apr 2025	Good Friday
1 May 2025	Labour Day / May Day
2 Jun 2025	Ascension Day
23 Jun 2025	Corpus Christi Holiday
30 Jun 2025	Sacred Heart
30 Jun 2025	Feast of Saint Peter and Saint Paul
20 Jul 2025	Independence Day
7 Aug 2025	Battle of Boyacá Day
18 Aug 2025	Assumption of Mary
13 Oct 2025	Columbus Day Holiday
3 Nov 2025	All Saints’ Day
17 Nov 2025	Independence of Cartagena Holiday
8 Dec 2025	Feast of the Immaculate Conception
25 Dec 2025	Christmas Day

Vacation in Colombia

Employees in Colombia are generally entitled to at least 15 days of paid vacation leave.

Sick leave in Colombia

Non-work related (Enfermedad de origen común)
- Duration: Minimum 180 days
- Compensation:
  - 0 to 2 days: Employer pays 100% salary
  - 3rd to 90th days: EPS covers 66% salary
  - 91st to 181st days: EPS covers 50% salary
  - After 181st day until 360th day: Pension Fund covers 50% salary
Work related (Incapacidad de origen laboral)
- Duration: Minimum 180 days (renewable if necessary for treatment or rehabilitation)
- Compensation: Covered by ARL (Aseguradora de Riesgos Laborales) (Employer’s Risk Insurance)

Maternity and paternity leave in Colombia

Female employees in Colombia are entitled to 14 weeks of paid maternity leave, split into two weeks before giving birth and 12 after giving birth. Male employees in Colombia are entitled to eight days of paid paternity leave.

Tax laws in Colombia

Employers and employees in Colombia are required to pay a percentage of salaries into various social schemes:

Health insurance = 8.5% from employers and 4% from employees
Workplace risk insurance = Between 0.348% and 8.7% from employers, depending on the nature of the work
Family welfare fund = 9% from employers
Pension = 12% from employers and 4% from employees

The income tax rate in Colombia is between 0% and 39% depending on income level.

Corporate tax in Colombia is charged at a rate of 32%, but this is set to decrease slightly in 2022.

Health coverage in Colombia

Colombia does have a social healthcare system, so private insurance is not necessary. However, many employers do choose to offer private insurance as a benefit, and private care can be superior to public care.

Employee severance and terminations in Colombia

Termination of employees in Colombia can be difficult, and it is common for employees to take legal action if they feel unfairly treated. To avoid this, it is always best to come to an agreement with employees, which may involve providing a bonus payment. Employees are generally also entitled to a severance payment upon termination, which equates to one month of salary for every year of service.

hassle-free Colombia compensation & benefits

Compensations & Benefits

Compensation laws in Colombia

The minimum wage in Colombia (in 2024) is 1,300,000 pesos per month for full-time employees.

Minimum Wage Country Comparison Chart	(Per month in USD)
Switzerland (Geneva)	$4,000
Italy	$2,255
Australia	$1996
Algeria	$156
Uzbekistan	$22

Benefit management in Colombia

Setting up a benefits system for your Colombian employees can be difficult if you are unfamiliar with the country and its unique labor laws. If you want to independently set up your benefits system, you can expect it to take weeks or even months, potentially presenting significant delays to your Colombian expansion.

Outsourcing your benefit management process ensures that you fully understand and adhere to the rules, ensuring your compliance and speeding up the process significantly. At Horizons, our Colombia employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.

Colombia Employer Of Record Peo

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Hire in Colombia

Employment Laws

Working hours in Colombia

Compensations & Benefits

Frequently asked questions

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Frequently asked questions

What is the difference between a Colombia PEO and a Colombia EOR?

Generally speaking, the terms “Colombia PEO” and “Colombia EOR” are used interchangeably.

Can an EOR in Colombia hire both local and foreign nationals to work in Colombia ?

An EOR in Colombia can feasibly hire both local and foreign nationals to work in Colombia. However, the ability of Horizons to sponsor your foreign national employee in Colombia may be limited due to visa quotas practiced in many countries. Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' Colombia EOR service take to hire an employee?

In most cases, Horizons’ Colombia EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Colombia.

Is it possible to get a work visa in Colombia ?

It is possible to get a work visa in Colombia. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Colombia are limited, however—get started today to secure your employees’ visa spot.

Employer of Record (EOR) Services in Colombia