Decrypting Colombia's Labor Environment

With a mixture of emerging and booming economies, political uncertainty and extreme contrasts in business customs, the Americas can never be categorized as one homogeneous whole. 

Colombia provides a gateway for companies to expand into Central and South American states. But when you operate in multiple countries and start to hire your employees, you must be aware to be fully compliant with the local labor regulations as well as your internal HR and payroll policies. Here we take a look at how HR & Payroll works in Colombia.

Social security system

• Colombia has a mandatory social security system, which provides benefits for retirement, healthcare, and labor risks.
• Both the employers and the employees are required to make contributions towards social security. Total payroll contributions:
  • Employer: up to 31% of salary, including the payroll taxes