Employer of Record services in Colombia
Hire in Colombia fast and fully compliant with TopSource’s Employer of Record (EOR) service. Our experts take care of payroll, taxes, and benefits. No need to set up a local Colombian entity.
Rated 5/5 by Gartner users
Employer of Record in Colombia: Simplify hiring, payroll & market entry
No entity. Hire faster.
Colombia compliant
Expert led support
We work where you work
“Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.”
“Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.”
“TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.”
Why use our EOR to employ in Colombia?
Expanding into LATAM requires navigating the complex Colombian Labor Code and strict tax regulations. That’s where TopSource’s Employer of Record (EOR) Colombia service makes global expansion simple.
We enable you to hire in Colombia without the cost and delay of setting up a legal entity. Our solution is fully compliant with local statutory requirements, ensuring every contract adheres to regulations for PILA (social security), Cesantías (severance), and the mandatory 13th-month pay (Prima de Servicios).
From drafting bilingual employment contracts to risk-free payroll management, we handle the administrative burden while your HR team focuses on building your Colombian workforce with confidence.
Hiring in Colombia with an Employer of Record. Your step-by-step guide
Employment costs for Colombia
Estimate the cost of your new hires in Colombia with our calculator. Simply enter their salary information to get a high-level breakdown of the actual cost of employment.
Employment Cost Calculator
*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertColombia
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Hiring in Colombia: at a glance
If you’re hiring in Colombia through an Employer of Record, these quick facts cover the essentials: transportation allowance, minimum wage, payroll cycle, and severance rules.
Transportation Allowance:
Employers must pay a mandatory transport/connectivity allowance for employees earning below a certain threshold.
Minimum wage
COP 1,423,500
Payroll cycle
Pay cycles are typically monthly or semi-monthly. Colombia mandates a “13th-month pay” (Prima de Servicios), equal to one month’s salary, paid in two installments: 50% by June 30th and 50% by December 20th.
Termination & severance
- Cesantías: One month of salary for every year worked. This is deposited annually into a private severance fund by February 14th.
- Interests on Cesantías: Employers must pay 12% interest on the accumulated severance directly to the employee by January 31st each year.
Paid leave
Employees are entitled to 15 working days of paid vacation per year after one year of service.
More than an Employer of Record.
Employer of Record services are only one way that we help you accelerate your global growth goals. From talent advisory to entity management, we give you the tools you need to research, enter and expand into your key markets.
Market Selection Advisory
Compare available talent, compensation, additional costs and regulations across different countries
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Salary Benchmarking
Identify and prioritize markets for growth based on talent, cost & regulations
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Global Skills Analysis
Map skill availability by region to align talent strategies with business goals..
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Talent Acquisition
Find, hire & onboard the highly skilled team members you need in each locality.
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Talent Strategy Optimization
Optimize your talent strategy to enable your organization to achieve it’s global ambitions.
Read more
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ExploreFrequently asked questions
Yes. We manage mandatory contributions to health, pension, and occupational risk insurance, along with prima de servicios (a mandatory bonus equal to one month’s salary, split into payments in June and December) and cesantías (a severance fund equal to one month’s salary per year, paid annually into a dedicated fund rather than directly to the employee). These parafiscal obligations are distinctive to Colombia and easy to miscalculate without local expertise.
Beyond the mandatory prima and cesantías, competitive Colombian employers typically add private health insurance (medicina prepagada) to supplement the public EPS system, meal or transport subsidies, and additional paid leave above the statutory 15 working days, which candidates in Colombia’s growing tech and BPO sectors actively compare between offers.
Colombia does not require statutory advance notice for most terminations, but unjustified dismissal triggers indemnification payments that scale with contract type and tenure, and are set out in detail in the Colombian Labor Code. Getting the cause of termination properly documented matters significantly in Colombia, since the indemnification cost differs substantially between justified and unjustified dismissal.
An EOR can typically onboard within one to two weeks for social security registration and contract issuance, compared with the several weeks to a couple of months needed to incorporate a Colombian entity (such as an SAS) and register with the tax authority (DIAN) and the social security system as a new employer.
Colombia’s parafiscal contributions, prima, and cesantías obligations require careful, ongoing calculation that’s easy to get wrong from outside the country. An EOR takes on that compliance role and the associated liability, letting you access Colombia’s growing talent pool quickly without incorporation costs or an in-country payroll function.
Beyond Colombia: Where else can you hire with our EOR services
We help you legally employ and pay talent across 180+ countries—so you can scale faster.
