Gibson Watts Global: PEO & EOR Services

COLOMBIA PEO & EOR

Hire in Colombia without a local entity today

As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.

Get started and hire in Colombia today with Gibson Watts Global.

DID YOU KNOW
  • Colombia is the second most biodiverse country in the world per square kilometre, with ecosystems ranging from Amazon rainforest and Andean high plains to Caribbean and Pacific coasts.
  • The traditional music genre “Vallenato” originated in the northern region of Colombia, using instruments like the accordion, caja vallenata and guacharaca; its storytelling style is deeply woven into Colombian identity.
  • Bogotá’s public library network, Biblioteca Pública Virgilio Barco and others are part of a larger system that makes Bogotá one of UNESCO’s leading cities for literature and public reading culture.

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Colombia EOR Services

A dynamic hub in Latin America for skilled workforce and market reach

Colombia’s strategic location, large domestic market, and growing sectors (tech, finance, energy) make it a compelling destination for companies seeking to expand in Latin America. But local employment regulation, wage setting, social security contributions, labour reforms, and regional cost differences require strong compliance. With Gibson Watts Global as your Employer of Record in Colombia, you get local legal, payroll, and HR expertise to handle administrative and regulatory responsibilities – allowing you to focus on operations and market growth.

Working in Colombia

Financial Year Dates

Colombia’s fiscal / tax year for individuals and companies runs from 1 January to 31 December.

Minimum Wage

Effective 1 January 2025, Colombia’s monthly minimum wage is COP 1,423,500.

Additionally, employees earning up to two times the minimum wage are eligible for a transportation allowance of COP 200,000/month.

The “integral minimum salary” (for certain special contracts) is COP 18,505,500/month.

Standard working hours

Legal maximum is 48 hours per week, typically over 6 days; standard workdays are 8 hours.

Overtime

Hours beyond regular working hours are paid at overtime rates; premiums depend on whether overtime is during regular day, night hours, Sundays or holidays.

Holiday Allowance

Employees in Colombia are entitled to 15 working days of paid annual leave after one full year of service.

Sick Leave

Colombian law requires registration of employees with Social Security (EPS) for health care; sick leave is available under those systems, with medical certification needed.

Maternity & Paternity Leave

Female employees are entitled to paid maternity leave under the social security scheme. The typical period is 18 weeks (126 days), which includes pre- and post-natal periods.

Paternity leave is shorter; recently laws and reforms aim to expand rights, though many policies depend on employer and region.

Public Holidays

Colombia observes numerous national public holidays including New Year’s Day, Epiphany (Día de los Reyes), Labour Day, Independence Day, Battle of Boyacá, All Souls’ Day, Christmas Day, among others. These are in addition to regional holidays.

Social Contributions

Employee contributions: health, pension, and other social security contributions are withheld from salary; employees typically pay ~8% total (this includes share of pension, health).

Employer contributions: employers contribute more for health, pension, occupational risk insurance (ARL), family compensation funds, SENA, ICBF, social benefits. Total employer burden is ~20-25%+ of the employee’s salary, depending on risk level and salary band.

There is a ceiling for contribution base: contributions up to 25 times the minimum monthly wage (25 SMLMV) for social security purposes.

Income Tax

Colombia uses progressive rates for personal income tax (ISR). These rates increase with level of taxable income after deductions.

The value unit (UVT) for tax purposes as of 1 January 2025 is COP 49,799. This affects thresholds and deductions.

Health Care

Health care in Colombia is provided through a mixed public-private system. Employees register with an EPS (Entidad Promotora de Salud) under the social security system. Public coverage includes hospitals, medical consultations, maternal care, preventive medicine.

Visas

Foreign nationals: to work legally, need a work visa and relevant residence permit. Employers or EOR providers often assist in filing these.

Visa requirements depend on nationality, duration of stay, type of work; some foreign professionals or investors may apply under special visas.

13th salary?

Colombia does not have a statutory “13th salary”. However, there are mandatory bonuses in certain sectors (e.g. “prima” in some contracts) and profit sharing (PTU) obligations where applicable.

Cultural Information

Colombia is remarkably diverse in climate, ethnicity and geography. From the snow-capped peaks of the Andes to the lush Amazon rainforest and Caribbean beaches, each region has distinct customs, music, cuisine and traditions.

Food is central to Colombian life: arepas, bandeja paisa, sancocho, ajiaco, empanadas, fresh fruits from tropical zones - regional specialties reflect local agriculture, climate and history.

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