In Colombia, as in many other countries, establishing a legal entity within the nation is typically a prerequisite for engaging in the hiring process. Certainly, we understand that this isn't a simple undertaking, and reason why Recruitable is your trusted ally and partner on this journey.
Recruitable’s Employer of Record (EOR) service in Colombia employs on your behalf, handles all compliance, payroll, taxes, and benefits. All risk and stress free.
Interesting facts
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Colombia has embraced numerous free trade agreements, fostering strong global connections and positioning itself as an inviting hub for international business.
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Colombia is classified as an emerging market and is part of the "CIVETS" group, representing countries with strong growth potential.
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Colombia's strategic location gives it access to both the Pacific and Atlantic Oceans, making it a key player in regional trade.
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Colombians are renowned for their warmth and friendliness. Visitors often comment on the hospitality and welcoming nature of the Colombian people.
A glimpse into Colombia's multifaceted character…
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Official Name: Republic of Colombia
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Location: South America
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Capital City: Bogota
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Currency: Colombian Peso (COP)
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Official Language: Spanish
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Population: Over 50 million people
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Main Cities: Bogota, Barranquilla, Cali, Cartagena, and Medellin
Why hire talent in Colombia?
In 2019, Colombia ranked as the third-largest workforce in Latin America
Avoid expensive misclassification mistakes with our EOR service.
People & Culture
The population of Colombia reflects the diversity of its landscape, with a heritage primarily rooted in three ethnic groups: Indigenous communities, African individuals brought to Colombia as slaves, and European settlers.
Workforce
Colombia has a strong emphasis on education, with A high literacy rate of adds to the abundant talent availability.
Home of two of the best universities on the continent: Universidad Nacional de Colombia and Universidad de Los Andes.
Colombia brings an exceptional skilled workforce, particularly in fields such as technology, engineering, marketing, and customer service, making it an attractive source of skilled talent.
Many professionals are fluent in English and other languages, facilitating communication and collaboration.
For these reasons, many international start-ups and mid-sized companies have recognized the benefits of hiring in Colombia.
Geography
Colombia is the only country on the continent with coasts on both the Caribbean Sea and the Atlantic Ocean.
With its geographic location, Colombia serves as an ideal hub as it aligns considerably with the time zones of the United States and Canada, providing favorable conditions for real-time collaboration.
Colombia’s Employment Laws and Regulations at a Glance
Salary
There are two types of salaries in Colombia:
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Ordinary Salary: Salary is paid separately from statutory benefits contributions. The employer must offer certain legally defined fringe benefits; that include transportation expenses, holidays and a 13th-month salary (‘prima’).
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Integral Salary: All mandated benefits and contributions are integrated into a consistent monthly salary payment.
13th Month Salary
Required by Law, all employees in Colombia who are earning an shall receive an extra month’s pay each year.
This must be paid as follows: 50% before June 15th and the other 50% before December 20th .
Grounds for Termination
Either the Employer and the Employee may terminate contracts with or without cause. However, these must be clearly stated in writing and certain rules apply depending on the type of contract.
Holidays & Paid Time Off
Employees are entitled to 15 days of paid vacation after working for full consecutive year.
There are 18 national holidays recognized in Colombia:
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New Year’s Day
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Epiphany
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Saint Joseph’s Day
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Maundy Thursday
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Good Friday
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Labor Day
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Ascension Day
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Corpus Christi
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Feast of the Sacred Heart
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Feasts of Saints Peter and Paul
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Independence Day
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Battle of Boyacá Day
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Assumption of Mary
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Day of the Races
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All Saints’ Day
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Cartagena Independence Day
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Feast of the Immaculate Conception
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Christmas Day
Minimum Wage
Per the latest provisions and changes, effective January 2025, the new minimum wage is 1,423,500 COP, which is about *339 USD.
Probation Period
The maximum probationary period in Colombia is two months for indefinite-term contracts and one-fifth of the contract’s duration for fixed-term contracts.
Severance Pay Obligations
The severance payment that a company is required to make depends on the nature of termination, the salary and type of contract.
Labor Laws
Colombia has enacted extensive labor laws to safeguard the rights and interests of both employers and employees.
The Colombian Labor Code (Código Sustantivo del Trabajo), stands as the principal legal framework for employment-related concerns in the country.
Employment Contracts
The Colombian labor legislation acknowledges different types of employment contracts, normally these are written in Spanish as recommended by the Colombian authorities.
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Fixed-term Contract: This type of employment contract comes with a predetermined end date, which is mutually agreed upon and known to both parties. These agreements typically span from a few months to three years.
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Permanent Contract: Also known as an indefinite contract, is a type of employment contract where there is no set date for the expiration or termination of service. This type of contract comes with advantages and disadvantages for both parties. For example, an employee is less likely to choose their work schedule. For employers, this contract brings higher costs, higher severance, etc.
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Service Contract: This type of contract hinges on achieving specific results/deliverable or providing services within a defined timeframe. A service contract does not promote employment, and the contractor is reimbursed with a service charge instead of a salary. In such agreements, employers are exempt from contributing to social security or other taxes.
Hire with confidence
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