Why Hire in Colombia
Expanding to Colombia
Colombia is a thriving software development and customer success hub in Latin America, offering a young, educated workforce across major cities like Bogotá, Medellín, and Cali. Its time zone alignment with North America makes it exceptionally attractive for remote work.
Utilizing an EOR in Colombia streamlines employment compliance without setting up a foreign legal branch.
Employment Laws
Employment Regulations in Colombia
Maximum working hours are undergoing phased annual reductions toward 42 hours per week. Probation periods can be agreed up to 2 months (or up to 1/5 of a fixed-term contract). Dismissal without legal cause requires statutory indemnity pay based on salary level and continuous service time.
Taxes & Benefits
Taxation and Employee Benefits
Employers contribute around 20.5% to social security (pension 12%, health 8.5%) plus parafiscal fees (SENA, ICBF, Family Compensation Fund). Mandatory benefits include 15 working days of paid vacation, 13th-month bonus (Prima de Servicios), statutory severance savings (Cesantías), and interest on severance.
Payroll & PILA System
Colombian Payroll Standards
Payroll runs on a semi-monthly or monthly frequency. Employers calculate and remit all social security and parafiscal payments electronically using the PILA (Planilla Integrada de Liquidación de Aportes) network.
IP Rights & Habeas Data
Intellectual Property and Data Privacy
Under Colombian Copyright Law (Ley 23 de 1982), economic rights to software and written works created by an employee during their contract automatically assign to the employer. Data privacy follows the strict Habeas Data framework (Ley 1581).
