Hiring in Colombia through an Employer of Record
A Colombian employer pays most of the pension contribution, collected through Colpensiones and the private funds.
Employing someone in Colombia through an Employer of Record costs 13 monthly salaries a year rather than twelve, as the law requires, plus 12 percent pension, employer share, plus the vendor's own monthly fee, the lowest published being from $199 from RemoFirst. Major charges in this country had no official figure we could read, so that is a floor, not the full cost. The charges were read from colpensiones.gov.co, last on .
What does an employer pay on top of salary in Colombia?
- 12% Pension, employer share
This is a floor, not the full cost: major employer charges in Colombia are left out, as explained below.
Each charge, and what it is for
- Pension, employer share: 12 percent of gross pay.
Salaries a year: 13, not twelve. The law requires an extra payment of a month's pay, which it calls prima de servicios
(read from the law).
This is only the pension charge. Companies that file income tax are exempt from the employer health contribution and two payroll levies for staff paid under ten monthly minimum wages, under the tax code; above that they pay them, and this total leaves them out. Work-risk insurance and the family fund levy are also left out, so treat this total as a floor, not an estimate.
What does one employee in Colombia cost a year?
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. The extra salaries the law requires are added at face value; any employer charges on them are not. "At least" marks a vendor whose published fee is a starting price. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM from $599, Deel from $599, G-P from $599, Multiplier from $459, Oyster $699, Pebl (Velocity Global) $399, RemoFirst from $199, Remote from $599, Remundo from $498, Rivermate from $349, Skuad from $199, Slasify from $250, Teamed from $599. Not published: Rippling.
Where these numbers come from
- Pension, employer share on colpensiones.gov.co read
- Each vendor's own pricing page, linked from its name above.