A written employment contract is required for all employees in Colombia. Contracts should include details such as job description, salary, working hours, and benefits, all in accordance with Colombian labor law. Contracts are typically drafted in Spanish to ensure clarity and legal compliance, though bilingual contracts may be used if needed for international operations.
Employer of Record (EOR) Colombia
Expand your team in Colombia without the hassle of setting up a local entity—Hire, Onboard, and Pay employees with complete compliance through Globaine.
- Transparent & Compliant
- World-Class Expertise
- Cost-Efficient
Start Hiring in Colombia
Simple & Compliant Hiring with Globaine's Employer of Record (EOR)
Hire in Colombia with Confidence
Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Colombia is handled efficiently and in full compliance with local regulations.
Fast Time-To-Hire
Onboard employees in as little as 12 hours.
Cost-Efficient
The most affordable solution on the market, saving you time and money.
Compliant Contracts
We draft bilingual contracts compliant with Colombian labor law.
Global Reach, Local Expertise
Hire not just in Colombia, but in over 180 countries through our global platform, allowing you to grow internationally without entity setup. Globaine’s team provides the local expertise you need to ensure every hire is compliant, efficient, and hassle-free.
Jump to
in Colombia
Choosing an Employer of Record (EOR) in Colombia simplifies compliance with local labor laws, reduces administrative burdens, and ensures efficient business expansion. EOR services in Colombia manage payroll, taxes, and employee benefits, enabling businesses to operate smoothly without setting up a local entity.
Written contracts are mandatory and must be prepared before the start of employment. Contracts should be executed in the presence of both parties to ensure mutual agreement. It’s particularly essential to establish contracts for specific employment types such as fixed-term and indefinite contracts, as well as part-time and remote work agreements.
Salaries in Colombia are generally quoted in Colombian pesos (COP). Employers may state the salary on a monthly basis as required by law, and it should reflect the agreed-upon work schedule and compensation terms. Salaries must meet or exceed Colombia’s minimum wage requirements, which adjust annually.
Contracts in Colombia may include clauses on non-compete agreements, confidentiality, and intellectual property rights. For remote or teleworking positions, contracts should outline provisions related to equipment usage, internet allowances, and work-from-home guidelines. All clauses should comply with Colombian labor legislation and should not infringe on employee rights.
in Colombia
1. What are the key steps in employee onboarding in Colombia?
Employees in Colombia need to obtain a Tax Identification Number (RUT), enroll in the Social Security System, and open a Colombian bank account. These steps are essential to ensure compliance with local payroll and tax regulations. The RUT is managed by the DIAN (National Directorate of Taxes and Customs) and is necessary for all employment arrangements.
2. When are pre-employment health checks required in Colombia?
Pre-hire medical checks are legally required in certain high-risk roles and industries, particularly in sectors like manufacturing and construction. The assessments must be conducted by a licensed healthcare provider to certify the employee’s ability to perform their duties safely.
3. What documents are essential for onboarding in Colombia?
Required documents include a copy of the employee’s RUT, Social Security enrollment confirmation, and the signed employment contract. Additionally, employees may need to submit identification, bank account details, and proof of prior employment or qualifications, depending on the nature of the job.
4. Why businesses in Colombia need EOR services?
5. How does EOR in Colombia different from other countries?
in Colombia
Employers are responsible for remote workers’ expenses like internet and equipment. These allowances should be included in the contract and comply with Colombian labor laws.
The minimum wage in Colombia for 2024 is expected to be set annually based on inflation and other economic indicators. For 2023, it was COP 1,160,000 per month, plus a mandatory transportation allowance for eligible employees. Employers must comply with the updated minimum wage to avoid legal issues.
in Colombia
1. What are the income tax rates in Colombia?
Colombia uses a progressive tax system, with rates ranging from 0% to 39%, based on income. Employers are responsible for withholding taxes at the applicable rates, which vary depending on an individual’s income bracket.
2. How are non-residents taxed in Colombia?
Non-residents are subject to a flat income tax rate of 35% on Colombian-sourced income. Unlike residents, non-residents do not benefit from progressive tax rates, which affects their overall tax liabilities.
3. When should annual tax returns be submitted in Colombia?
The fiscal year in Colombia runs from January to December. Employers must withhold and remit taxes monthly, while individuals file annual tax returns, typically due between April and June of the following year, depending on income and other factors.
4. What are the social security contribution requirements in Colombia?
Social security contributions are shared between employers and employees. Employers contribute approximately 20.5% of an employee’s salary, covering health, pension, and occupational risk funds, while employees contribute 8%. These contributions are mandatory and fund essential social services, including healthcare and pensions.
in Colombia
Colombian employees are entitled to a minimum of 15 working days of paid leave per year. This leave can be taken after one year of service, and employers are encouraged to allow employees to use their leave within a year.
Employees can use accrued leave after completing one year of service. Leave policies may vary based on company policy, with some allowing leave in advance or providing more than the legally required days.
Maternity leave in Colombia is 18 weeks, with at least one week taken before birth. Paternity leave is two weeks and must be taken immediately following the child’s birth. Employers cover these costs initially but are reimbursed by the social security system.
Colombia observes 18 public holidays annually, including New Year’s Day, Independence Day, and Christmas. Employers must grant these days off with pay, except for industries with special operating requirements.
in Colombia
1. What benefits are mandatory in Colombia?
Mandatory benefits include the 13th-month salary, transportation allowance, health insurance, and pension contributions. Employers must also provide severance payments and interest on severance to certain employee categories.
2. Is there a home office allowance for remote employees in Colombia?
Employers are encouraged to offer an allowance for home office expenses. The amount may vary, but it typically covers internet and other utility costs.
3. Are meal allowances commonly provided in Colombia?
Meal allowances are not mandatory in Colombia, though many companies provide them as an added benefit. This benefit is often given as a form of support for commuting employees.
4. What additional benefits are common in Colombia?
Companies often offer private health insurance, meal allowances, and wellness programs. These competitive benefits are not required by law but help attract and retain talent.
FAQs
1. What is EOR in Colombia?
An Employer of Record (EOR) in Colombia is a service that enables businesses to hire employees without setting up a local entity. The EOR manages payroll, taxes, and compliance with Colombian labor laws, ensuring smooth and compliant HR processes.
2. What specific cost savings can our company expect by using Globaine's EOR solution compared to setting up a local entity in Colombia?
By using Globaine’s EOR, companies avoid the significant costs of establishing and managing a legal entity in Colombia, reducing expenses for setup, administrative operations, and legal compliance.
3. How does Globaine guarantee fast onboarding within 12 hours, and what processes are in place to maintain this speed?
Globaine guarantees quick onboarding by utilizing a streamlined process that includes pre-established agreements, automated systems for document management, and a local expert team ready to onboard employees efficiently.
4. Can Globaine handle complex employment scenarios in Colombia, such as drafting bilingual contracts and managing terminations?
Yes, Globaine drafts compliant bilingual contracts and manages terminations in line with Colombian labor laws, addressing complex employment situations with expertise.
6. How does Employer of Record work in Colombia?
An Employer of Record in Colombia oversees payroll, benefits, and compliance with labor laws. Acting as the legal employer, the EOR handles all HR-related tasks, allowing businesses to hire employees without establishing a local entity.
