Cost to Hire an Employee in Colombia (2026)

• Gross salary, usually paid monthly.
• Employer costs of about 34.2% at a COP 72,000,000 salary: COP 24,615,840 a year, of which the largest is pension (estimate).
• An EOR fee, if you hire without your own entity. The providers in our Colombia guide publish starting prices of US$199–699 per employee per month.

Mandatory employer costs at a COP 72,000,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.

Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.

• Private health plan (optional) (COP 3,600,000 / year): Prepaid medicine plans are a common benefit for professional roles; an estimate, priced by insurer and cover.
• Tables assume a salary under ten minimum wages a month (so health, SENA and ICBF are waived) and occupational risk class I. Above that threshold, add 13.5%.
• Employees earning up to two minimum wages also receive a monthly transport allowance, which counts toward prima and cesantías.
• Paid vacation (15 working days a year) is part of salary, not an extra cost, as long as it is taken.
• Senior hires earning at least 13 minimum wages can be paid an integral salary, which folds the prima, cesantías and their interest into the salary; contributions are then due on 70% of it.
• Employee pension (4%) and health (4%) contributions and income tax are deducted from the employee's pay and are not employer costs.

Without your own entity in Colombia, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own Colombian SAS. See the comparison in our Colombia guide and EOR vs local entity.