Colombia

By law in Colombia, the maximum number of working hours is 8-10 hours per day and 47 hours per week (effective July 2023)

Worker’s non-working time must be respected and employers should not contact them after working hours.

With effect from summer 2023, the work week will gradually be reduced. Colombians will work one less hour per week each year, which will not negatively affect their salary, benefits, or the value of the daily working hour. The initial objective of the measure is to reduce the workday to 42 working hours per week by the year 2026. It will start with one less hour in the first two years (2023 and 2024) and two less hours in the following years (2025 and 2026).

Overtime

All work above the standard weekly working hours is paid as overtime and regulated by the employment contract/collective agreements.

An employee who has to work between 22:00 and 06:00, must be paid 35.00% more than the equivalent daytime salary.

Exemptions for the receipt of overtime include employees who earn more than 10x the minimum wage or employees in trust positions.

For the remaining employees, the payment of overtime is generally based on the following:

Daytime overtime is paid at 125.00% of the regular pay rate, increasing to 175.00% of the standard pay rate for night-time overtime hours.

Sunday/extra daytime/holiday overtime work is paid at 175.00% of the regular pay for holidays and night-time work and 125.00% for overtime work during the daytime.

Remote Work

Work From Home

Employers are required to respond within 5 days to employees’ written working from home requests. Employees may carry out their work overseas if permission is given by their employer. Teleworkers’ employment agreements must include a description and any restrictions and responsibilities regarding equipment and software, the mode of teleworking, the required working hours, the location of teleworking, reimbursement of expenses, ergonomics and technology, among others.

It is possible for the employer and the teleworkers to expressly agree in the employment contracts or amendments on the reversibility of teleworking at any moment.

Employers are required to reimburse employees for teleworking-related expenses which are not normally incurred by employees. Employers and employees may agree a monthly allowance to compensate internet, telephone, and energy costs.

Employers should perform medical examinations for their remote employees when they are hired and on a periodic basis. Remote workers who are caring for minors under age 14, individuals with disabilities or adults over age 60 are allowed to organize their work schedule around their caregiver duty.

All workers have the right to disconnect and avoid any work-related contact outside their working hours and statutory or contractual leaves.

Remote Work

Remote work can be agreed upon voluntarily by the employer and employee, whereby an employee may conduct their services from any place within the country. The entire labor relationship, from its beginning to its termination, may be conducted without any face-to-face meetings at a designated workplace.

All workers have the right to disconnect and avoid any work-related contact outside their working hours and statutory or contractual leaves.

Maternity Leave

Employees are entitled to 18 weeks of paid maternity leave at 100.00% of the regular salary rate of pay. The employer pays this and is then fully reimbursed by social security.

Paternity Leave

Employees are entitled to two weeks of paid paternity leave of 100.00% of the regular salary rate of pay. The employer pays this and is then fully reimbursed by social security (EPS).

Parental Leave

There is no additional parental leave in Colombia.

Bereavement Leave: In the event of the death of an immediate family member, an employee is entitled to up to five days’ leave in Colombia.

Marriage Leave: Employees are also entitled to five days’ leave in the event of their marriage.

Colombia provides national healthcare. Companies also offer private healthcare insurance.

Employer Payroll Contributions

12.00% - Pension Fund (applied on salary up to 25 minimum monthly salaries (SMMLV)).
8.50% - Medical Plan (applied on salary up to 25 minimum monthly salaries (SMMLV)).
0.52% – 6.96%-Labor Risks (applied on salary up to 25 minimum monthly salaries (SMMLV)).
4.00% - Family Compensation Funds (applied on salary up to 25 minimum monthly salaries (SMMLV)).
3.00% - Family Welfare (ICBF) (applied on salary up to 25 minimum monthly salaries (SMMLV)).
2.00% - National Apprenticeship Service (SENA) (applied only on integral salary) (applied on salary up to 25 minimum monthly salaries (SMMLV)).

21.02% – 27.46%-Total Employment Cost - Employee Employee Payroll Contributions
4.00% - Pension Fund (applied on salary up to 25 minimum monthly salaries (SMMLV)).
1.00% - 2.00% - Pension Solidarity Fund (employees who earn more than four minimum legal monthly salaries must contribute an additional 1%, to the pension solidarity fund, created by law, employees who earn more than 16 minimum monthly salaries (COP 18,560,000) must contribute an additional percentage (between 0.2% and 1%), depending on the amount of salary received.)

4.00% - Medical Plan

9.00% -10.00%-Total Employee Cost

Employee Income

Tax - Tax Units (1 Tax Unit= 47,065 COP)
0.0% - 0-1,090 Tax Units
19.0% - 1,090-1,700 Tax Unit
28.0% - 1,700- 4,100 Tax Units
33.0% - 4,100- 8,670 Tax Units
35.0% - 8,670- 18,970 Tax Units
37.0% - 18,970- 31,000 Tax Units
39.0% - 31,000 Tax Units +

Payroll Cycle

The payroll cycle in Colombia is either bi-monthly, paid on the 15th and last day of each month, or monthly.

13th Salary

Paying a 13th-month salary is mandatory in Colombia. The employer must pay one additional monthly salary split in two payments: the first half paid within the first 15 days of June and the other half paid within the first 20 days of December. These will be pro-rated when a full year has not been worked.

Authority Payments

Authority Payment - Paid To - Due Date

Social security, private and government entities - Payments are done by an operator - Based on the tax number of the employer. But always in the first or 2nd week of the following month

The standard rate of VAT in Colombia is 19.00%.