Global EOR Services in Colombia
Find, Hire & Pay Employees in Colombia
Hire in Colombia
Expanding into Colombia presents exciting opportunities for businesses seeking access to a dynamic, skilled workforce and a growing economy. However, navigating Colombia’s complex employment laws, tax systems, and social security contributions can be challenging.
Global Employer of Record (EOR) services in Colombia allow companies to hire local employees without setting up a legal entity. The EOR handles all employment compliance — including payroll, tax, and statutory benefits — enabling smooth, compliant hiring and workforce management.
Colombia is one of Latin America’s fastest-growing economies, known for its strong service, manufacturing, and technology sectors. The country has established a stable business environment with multiple trade agreements, a competitive labor market, and improving infrastructure.
🇨🇴Employer of Record (EOR) Services in Colombia
Effortless Market Entry: Hire local talent swiftly without the need for entity establishment.
Regulatory Compliance: Ensure adherence to labor, tax, and social security laws.
Cost Optimization: Reduce overhead expenses by avoiding entity setup and administrative burdens.
Operational Focus: Delegate HR and compliance tasks while concentrating on core business activities.
🇨🇴Colombia: A Comprehensive Guide to Employment and Labor Practices
Capital: Bogotá
Currency: Colombian Peso (COP)
Official Language: Spanish
Population: Approx. 52 million
Major Industries: Oil, mining, agriculture, IT, finance, and manufacturing
Minimum Wage (2025): Around COP 1,300,000/month (excluding transportation allowance)
Time Zone: GMT -5
Corporate Tax Rate: 35%
Colombia’s growing digital economy and youthful workforce make it an ideal location for business expansion and offshore hiring.
Employment Laws and Policies in Colombia
📄 Employment Contracts in Colombia
Employment contracts can be verbal or written, but written agreements are strongly recommended to avoid disputes.
Types of contracts include:
- Indefinite-term contracts: Most common and preferred for long-term employment.
- Fixed-term contracts: Can last up to 3 years, renewable upon agreement.
- Project-based contracts: Linked to the duration of a specific task or project.
- Probation period: Up to 2 months for indefinite-term contracts.
Mandatory inclusions: job role, salary, working hours, benefits, notice period, and termination terms.
⏰ Working Hours in Colombia
- Standard workweek: 48 hours (typically 8 hours/day, Monday to Saturday).
- Overtime: Limited to 2 hours/day and 12 hours/week.
- Rate: 125% for daytime overtime, 175% for nighttime overtime.
- Night work: 9 PM to 6 AM, compensated at 135% of normal wage.
- Rest day: Sunday (employees working on Sundays receive 175% pay or compensatory rest).
🌴 Employee Leave in Colombia
Annual Leave:
- 15 paid working days per year after one year of continuous service.
Sick Leave:
- Paid at 66.67% of salary, covered by social security after the first 2 days (paid by employer).
Maternity Leave:
- 18 weeks of paid leave (100% of salary, funded by social security).
Paternity Leave:
- 2 weeks of paid leave.
Public Holidays:
- Around 18 public holidays annually (paid if they fall on a working day).
💰 Employee Benefits and Payroll
Mandatory Contributions:
- Pension: 16% of salary (12% employer, 4% employee)
- Health Insurance: 12.5% of salary (8.5% employer, 4% employee)
- Occupational Risk (ARL): 0.522% – 6.96% depending on job risk level
- Family Welfare & Training Funds: 4% employer contribution
Payroll:
- Processed monthly in Colombian Peso (COP).
- Employers must provide detailed pay slips and pay all statutory contributions on time.
⚖️ Employment Laws and Policies in Colombia
Employment relationships in Colombia are governed by the Colombian Labor Code (Código Sustantivo del Trabajo) and regulations from the Ministry of Labor.
Key regulations cover:
- Minimum wage and annual increments.
- Working hour limitations and overtime pay.
- Social security enrollment (health, pension, risks).
- Mandatory profit-sharing in certain sectors.
- Termination rules and severance payments.
- Non-discrimination and equal pay laws.
Termination & Severance:
- Employees are entitled to severance pay depending on tenure and salary type.
- Indefinite-term contracts: 30 days’ salary for the first year + 20 days per additional year.
- Fixed-term contracts: Remaining value of the contract.
- Employers must provide notice or payment in lieu.
Opening a Legal Entity in China
Global EOR Services as an Alternative
Opening a legal entity in China involves multiple government approvals, capital commitments, and ongoing compliance with labor, tax, and foreign exchange regulations.
With a Global Employer of Record (EOR), your business can:
- Hire employees in China within weeks.
- Stay compliant with local tax and labor laws.
- Handle payroll, benefits, and HR administration effortlessly.
- Avoid the cost and complexity of establishing a entity.
A Global EOR enables your company to test the market, scale teams quickly, and operate compliantly—without long-term legal or financial risk.
Foreign companies can establish a legal presence in Colombia through several structures:
- Subsidiary (Sociedad Anónima or S.A.): Separate legal entity with local operations.
- Branch Office: Operates under the parent company’s legal framework.
- Simplified Stock Company (SAS): Most popular option due to its flexibility and limited liability.
Requirements include:
- A registered local address.
- A Colombian legal representative.
- Registration with the Chamber of Commerce and DIAN (tax authority).
- Opening a corporate bank account.
Setting up a local entity can take several weeks and involves administrative complexities. Using a Global EOR in Colombia allows companies to hire quickly and compliantly — without the cost or delay of entity formation.
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Popular Global EOR Providers Supporting Colombia
(They often partner with in-country firms for local compliance.)
Explore how Global EOR Services can transform your global workforce management.
Contact us today to learn more about our tailored solutions and how we can support your business goals.
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