Colombia

Last Update by , 28 Nov 2024

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Exchange Rate

28 Oct 2025

 

Cost of Living

Indicative value for a working adult in a city: Colombia

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (COP)
McDonalds Set Meal 25,000
Monthly Train and Bus Tickets 140,130
3 Bedrooms Rental (City Center) 2,355,700
3 Bedrooms Rental (Outskirt) 1,801,820

Current Inflation Rate

6.15%

Wage

Minimum Wages

  • 1,300,606 COP per month

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (COP)
Entry-Level
Fresh Graduate
 2,350,000
Mid-Level
5 Years
 2,866,353
Experienced & Managerial Level
10 Years
 9,050,000
Specialized & Senior-Level
15 Years
 14,200,000

Annual Salary Growth

10%

Statutory Contribution

Salary split into 2 categories: Regular and integral.
The Minimum Monthly Wage (SMMV) and all social security contributions are based on the Ingreso Base de Cotización (IBC)

Country Level

Type Employer Rates Employee Rates Notes
Pension Fund (EPS) 12% on 25 times SMMV
If GDP in past 3 years is higher than 4%, 45 times SMMV 		4% All staff and cannot exceed 25 times SMMV
Pension Solidarity Fund - 1%: salary over 4 times minimum monthly salary
+ 0.2% - 1%- salary over 16 times minimum salary 18,560,000 COP 		All staff
Mandatory Health Insurance (POS) 8.5%
Applied on 25 times SMMV 		4% Monthly salary SMMV 1,300,000
10% Monthly salary SMMV 1,300,000 - 3,900,000
12% Monthly salary SMMV over 3,900,000 		All staff whose income between 10- 25 times SMMV
Accident Insurance (Aportes de Riesgos Profesionales) 0.348% - 8.7%
Applied on 25 times SMMV 		- All staff based on their IBC category 1-6
Payroll Tax 9%
(based on 100% for regular, 70% for integral) 		- All staff with Income over 10 times SMMV
Family Welfare (ICBF) 3%
Applied on 25 times SMMV 		- All staff with income under 25 times SMMV
National Apprenticeship Service (SENA) 2%
Applied on 25 times SMMV 		- All staff with income over 10 times SMMV
Remote Working Allowance 162,000 COP - All staff whit income over 2 times SMMV for 100% remote or hybrid working arrangements
Bonus/ Unemployment Insurance (Cesantía) 1 month salary per year - All full and part time staff
13 Month Salary (Prima) 15 days salary paid in June
15 days salary paid in December 		- All full and part time staff

Other Benefit

Other common employment benefits in Colombia include:

  • Additional Health Insurance: 414,700 COP per month
  • Postgraduate Study Benefit: Employers cover 50% of the total cost for staff

Income Tax

Residents

  • Taxable income calculated on Tax Unit (TU). 1 TU is 42,412 COP
    Taxable period: 1st January - 31st December
    Tax file due date: April of the following year

Country Level

Taxable Income Rate
0 - 1,090 0%
1,090 - 1,700 19%
1,700 - 4,100 28% + TU 116
4,100 - 8,670 33% + TU 788
8,670 - 18,970 35% + TU 2,296
18,970 - 31,000 37% + TU 5,901
Over 31,000 39% + TU 10,352

Non-residents

  • The taxation rate is same to resident and only applies to income generated in Colombia

Working Hours

Statutory

47 hours
7/8 hours, 6 days a week

Typical practice

47 hours
Monday - Saturday

Overtime

Up to 2 hours/day, 12 hours/ week

  • Daytime: 06:00 - 22:00: 125% normal salary
  • Sunday, public holidays 21:00 - 06:00: 175% normal salary
  • Night shifts 22:00-06:00 : 135% normal salary

Employment Contract

Permanent

Contract Format

Can be written or verbal in Spanish. Contracts must be written if: there is probation, staff are receiving an integral salary, or any non-salary payments

  • Must be written if contracts contain;
    - Fully integrated salary agreements
    - Agreements for non-salary payments
    - Probation period of the contract
    - Remote working agreements

Payroll Currency

COP, USD accepted

Probation

Up to 2 months

Contract Period

No minimum duration

Termination

In Colombia the termination process adheres to the following rules:

  Voluntary Resignation Involuntary Termination Economic Layoff
Notice Period - Probation - No notice - No notice - No notice
Notice Period - Regular - 30 days' notice - Without cause: No notice - With cause: 15 days' notice - Less than 1 year of service: The employer must give 30 days' notice. - 1 to 5 years of service: The employer must give 45 days' notice. - More than 5 years of service: The employer must give 60 days' notice.
Severance Pay - No Severance - Income under 10 times minimum wage: 30 days salary for each year of service + 20 days salary * (service years -1) - Income 10 times minimum wage: 20 days salary or each year of service + 15 days salary * (service year -1) - Income under 10 times minimum wage: 30 days salary for each year of service + 20 days salary * (service years -1) - Income 10 times minimum wage: 20 days salary or each year of service + 15 days salary * (service year -1)

Public Holiday

18 days

Country Level

Date Name
01 Jan New Year's Day
06 Jan Epiphany
24 Mar Saint Joseph's Day
17 Apr - 18 Apr Maundy Thursday
01 May Labor Day
02 Jun Ascension Day
23 Jun Corpus Christi
30 Jun Sacred Heart
20 Jul Independence Day
07 Aug Battle of Boyacá Day
18 Aug Assumption of Mary
13 Oct Columbus Day
03 Nov All Saint's Day
17 Nov Independence of Cartagena
08 Dec Feast of the Immaculate Conception
25 Dec Christmas Day

Leave

Leave Type Entitlement Notes
Annual Leave 15 working days Staff with 1 year service
Sick Leave 180 working days All staff
Maternity Leave 18 weeks
1-2 weeks taken before birth 		All expectant mothers
Paternity Leave 2 weeks All expectant fathers
Compassionate Leave Up to 8 calendar days per event All staff for marriage and bereavement

Reference

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