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
United Kingdom
| British Pound | United Kingdom | |
|---|---|---|
| Base Salary (per month) | £2,913.58 | £2,913.58 |
| Local employer’s cost | £384.88 | £384.88 |
| Total Cost (Annual) | £39,581.54 | £39,581.54 |
| British Pound | United Kingdom | |
|---|---|---|
| Base Salary (per month) | £2,913.58 | £2,913.58 |
| Local employer’s cost | £384.88 | £384.88 |
| Total Cost (Annual) | £39,581.54 | £39,581.54 |
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.
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More insights on Employer of Record in Columbia
Frequently asked questions
Yes. We can engage both contractors and full-time employees.
Employment termination in Columbia is allowed but must follow strict rules:
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With cause: no severance required.
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Without cause: employee is owed severance compensation, which depends on contract type and tenure.
Yes. Local statutory benefits are included and optional upgrades are available.
Yes, with limitations based on local labor laws.
Not legally required, but Spanish is strongly recommended because Spanish versions prevail in legal disputes.
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.