Minimum Wage
General
The monthly minimum wage in Colombia is 1,000,000.00 COP.
Payroll
Payroll Cycle
The payroll cycle in Colombia is generally monthly, with payments being made on the last working day. However, it is also common in specific industries to pay bi-weekly with pay dates of the 15th and the last working day.
13th Salary
Paying a 13th-month salary is mandatory in Colombia. The employer must pay the first half within the first 15 days of June and the other half within the first 20 days of December.
Working Hours
General
By law in Colombia, the maximum number of working hours is 8 hours per day and 48 hours per week (up to 10 hours).
Overtime
All work above the standard weekly working hours are 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.
Working Week
Monday-Friday/Monday-Saturday
Leave
Paid Time Off
Paid leave in Colombia is outlined in the employment contract as a minimum of 15 days paid leave a year, following completion of 1-year service. This is in addition to any public holidays.
Public Holidays
There are 18 public holidays.
Sick Days
All employees are entitled to paid sick leave by their employer for the first two days of leave, at a rate of two-thirds of their regular pay rate.
A medical authorisation from a Colombian social security entity must be obtained for the employee to be paid for their sick leave.
From day three onwards, all payments are assumed by the social security system. Still, the law requires that the employer pay from day three until day 180, with reimbursement from the social security system. These same rules also apply to disability leave.
Maternity Leave
Employees are entitled to 18 weeks paid maternity leave of 100.00% of the regular salary rate of pay. The employer pays this and is then fully reimbursed by the social security.
Paternity Leave
Employees are entitled to 8 business days of paid paternity leave of 100.00% of the regular salary rate of pay. The employer pays this and is then fully reimbursed by the social security (EPS).
Parental Leave
There is no additional Parental leave in Colombia.
Other Leave
In the event of the death of an immediate family member, an employee is entitled to up to five days leave in Colombia.
Employees are also entitled to five days leave in the event of their marriage.
Termination
Termination Process
The termination process is standard in Colombia and is based on Labor Law requirements unless an employer can provide sufficient cause for dismissal without notice (due to misconduct, etc.) Notice of termination must be in writing and sent to the relevant governmental authorities. The employer must make payment to leavers on their last day at work.
Notice Period
According to Colombia Labor law, if the employee is paid weekly or at shorter interims, eight days’ notice is required. If the employee is paid less often than weekly or has been with the employer for longer than one year, a minimum of 30 days’ notice is required, with three additional days added for each additional year of service at the company up to a maximum of 90-day prior notice.
For obra/labor and indefinite contracts, no notice period is required.
Severance Pay
In Colombia, severance pay is mandatory if applicable and determined by the employee’s length of service and the rate of earnings.
If the employee earns less than 10x the minimum monthly wage, the severance payment entitlement is 30 days for the first year of employment, plus 20 days for each additional year of service.
If the employee earns more than 10x the minimum monthly wage, the severance payment entitlement is 20 days for the first year of employment, plus 15 days for each additional year of service.
Probation Period
The probation period in Colombia for permanent employees is generally two months.
Common Benefits
General
Internet allowance, mobile phone allowance, meals vouchers/allowance and fitness/wellness allowance.
VISA
VISA
Any foreigners coming to work in Colombia will need to have a job offer from a local employer before applying for a visa. There are several visa types, but the most commonly used is the M visa which is valid for five years. These visas are issued in person at the Ministerio de Relaciones Exteriores’ offices in Bogota.
Every foreigner with a visa valid for more than three months needs to apply and obtain a foreigner’s identity card at a regional office. This must be obtained within 15 days of entering Colombia or 15 days after the visa was issued.
Once five years have been completed, foreign nationals can apply for an R visa; then, once an individual has held an R visa for five more years, they can become a Colombian citizen.
VAT
General
The standard rate of VAT in Colombia is 19.00%.
