COUNTRY GUIDE
A short guide to building a dedicated offshore team in Colombia
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Anastasiia Chernenka
Head of Recruitment
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Payroll cycle
In Colombia, the payroll cycle is either bi-monthly, the payroll cycle is typically monthly and payment is made 1 time per month according to the country law.
Employer taxes
Employer taxes in Colombia range from 21.02% to 27.46%.
Overtime pay
Overtime is limited to 2 hours per day and 12 hours per week. Employees who work overtime during regular working hours are entitled to an additional 25% on top of their ordinary hourly rate. Those who work during the night shift from 9 p.m. to 6 a.m. must be compensated at a rate of 35% above their ordinary hourly rate. These regulations ensure fair compensation for employees who work additional hours or during the night shift.
Paid leave
Employers are required to provide 15 paid working days of annual leave for each year of service.
Sick leave
To be eligible for paid sick leave of up to 180 days, claimants must obtain verification from a Colombian social security authority stating that they are unable to work. During the first 90 days, employees receive two-thirds of their salary (with the employer covering the first two days). They receive 50% of their salary for the remaining period, with the employer reclaiming the amount from the social security system. If the illness or injury is work-related, the employer must pay 100% of wages for the entire duration of the incapacity.
Public and provincial holidays
Public holidays in Colombia are mandatory and are added to annual leave entitlement. Employees required to work on national holidays are entitled to receive 150% of their regular Colombia's public holidays are mandatory and added to the annual leave entitlement. Employees required to work on national holidays are entitled to receive 150% of their regular pay or be given time off in lieu. When public holidays fall on a Sunday, they are observed the following day. Here are some of the public holidays observed in Colombia:
Notice period
Either the employer or the employee can unilaterally terminate the employment contract without reason or notice. However, the terminating party may be liable for costs or loss of pay resulting from the termination. Employers terminating employment with cause may require 15 days' notice. Fixed-term employees should receive notification 30 days before the end of the contract to prevent automatic renewal.
13th Month Bonus
In Colombia, employers must pay a 13th-month salary. The first half of the bonus must be paid within the first 15 days of June and the second half within the first 20 days of December. The bonus is prorated for employees who have not worked an entire year.
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