Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language



Colombian peso ($, COP)

Payroll Frequency


Public Holidays

18 days

Employer Taxes


Cost of Living Index

$ (131 of 139 nations)

Statutory Leave

15 days

Sick Leave

Up to 540 days

Maternity Leave

18 weeks

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

COP 1,000,000 per month.

Overtime Pay

Standard working hours are 8 hours per day, 40 hours per week, Monday to Friday or can be extended to 48 hours, from Monday to Saturday.

Overtime is paid at a premium of 25% and should not exceed 2 hours per day or 12 hours per week.

Additional Pay

Sick leave is paid at different rates and by different entities

  • 0-2 days is paid at 66.6% of salary and paid by the employer
  • 3-90 days is paid at 66.6% of salary and is refunded by Social Security
  • 90-540 days is paid at 50% salary and is refunded by Social Security

Payroll Cycle

For all Borderless customers, payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

  • 12.00% - Pension Fund
  • 8.50% - Healthcare Fund
  • 0.348 - 8.7% - General Labor Risk Pool
  • 4% - Family Allowance Fund
  • 3% - Colombian Institute for Family Welfare (ICBF)
  • 2% - National Learning Service (SENA)

Employee Costs & Taxes

  • 0 (Income up to 1090 tax units)
  • 19.0% (1090 to 1700 tax units + 116 tax units)
  • 28.0% (1700 to 4100 tax units + 788 tax units)
  • 33.0% (4100 to 8670 tax units + 788 tax units)
  • 35.0% (8670 to 18970 tax units + 2,296 tax units)
  • 37.0% (18970 to 31000 tax units + 5,901 tax units)
  • 39.0% (31000 tax units and up + 10,352 tax units)

*One tax unit is COP 38,004 for FY 2022.

Employment Information

Termination Process

Any employee or employer terminating employment must state in writing the time of termination and the cause that lead to the decision. Employers must present a "fair" reason for termination or will be subject to penalties and fines by law.

Notice period

Notice is not required if the employee was terminated for misconduct.

30 days notice is required for workers on a fixed-term contract before it expires.

15 days notice is required for workers on a non-fixed term contract for poor performance. Workers can respond and challenge the decision within 24 hours.

Probation Period

Probation periods are not mandatory. For indefinite term contracts, the maximum probation period is 60 days and for fixed-term contracts, the maximum is 1/5 of the initial term agreed, up to a maximum of 60 days.

Severance Details

Severance pay in Colombia varies on the nature of termination, salary, and the type of contract.

In fixed-term agreements, severance must be the balance of salary to the last date of the contract.

In non-fixed term agreements, severance is based on the employee's current salary and years of service.

  • Employees earning less than COP$9,085,260 (10 times the monthly minimum wage) will receive 30 days’ salary for the first year of employment and 20 days’ salary for each additional year.
  • Employees who earn more than 10 times the monthly minimum wage will receive 20 days’ salary after one year and 15 days’ salary for every additional year with the company.

Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo