Colombia Flag

21 Best Employer of Record (EOR) in Colombia 2026

Don’t want to register a company just to hire in Colombia? An EOR lets you employ local talent while staying compliant from day one.
Dhiraj
Written By: Dhiraj Das

Co-founder

Manjuri-Dutta
Edited By: Manjuri Dutta

Co-founder & Editor

Country Capital:

Bogotá

Language:

Spanish

Price Range:

$400–$800

Onboarding Time:

1–3 Weeks

Official Currency:

Colombian Peso (COP)

Working Hours:

48 Hours

Public Holidays:

18 Days

Paid Annual Leaves:

15 Days

Country pages on EmployerRecords are built to support hiring decisions through independent provider evaluation and cost context. EmployerRecords is not an EOR provider.

Top 10 EOR in Colombia: Quick Comparison

Before we check the list of top EOR solutions in Colombia, here is a quick list of the top EOR providers that are regularly explored by business.
hellopebl_logo
Pebl
Avg 4.6 (507 Ratings Analyzed)
Coverage
180+ Countries
Starting Price
$599
Best For
Best for enterprise reach in 185+ countries.
Multiplier Logo
Multiplier
Avg 4.7 (3,059 Ratings Analyzed)
Coverage
150+ Countries
Starting Price
$400
Best For
Best for straightforward EOR pricing.
Oysterhr Logo
Oyster HR
Avg 4.5 (1,200 Ratings Analyzed)
Coverage
180 Countries
Starting Price
$699
Best For
Best for fast, compliant onboarding
Remofirst Logo
Remofirst
4.6 (200 Reviews Analyzed)
Coverage
185+ Countries
Starting Price
$199
Best For
Cost Effective EOR Solution
Deel Logo
Deel
Avg 4.8 (16,900 Ratings Analyzed)
Coverage
150 Countries
Starting Price
$599
Best For
Best for broad owned-entity coverage
Rippling-Logo
Rippling
Avg 4.8 (13,600 Ratings Analyzed)
Coverage
50+ Countries
Starting Price
$500
Best For
Best for all-in-one HR + EOR.
Omnipresent EOR
Avg 4.6 (860 Ratings Analyzed)
Coverage
180+ Countries
Starting Price
£499
Best For
Best for white-glove EOR with benefits support.
Borderless AI Logo
Borderless AI
Avg 4.7 (170 Ratings Analyzed)
Coverage
170+ Countries
Starting Price
$579
Best For
Remote Logo
Remote EOR
Avg 4.5 (5,799 Ratings Analyzed)
Coverage
150+ Countries
Starting Price
$599
Best For
Best for owned-entity EOR with strong contractor options.
Papaya Global Logo
Papaya Global
Avg 4.2 (125 Ratings Analyzed)
Coverage
160 Countries
Starting Price
$599
Best For
Best for unified global payroll + payments.

Our Ranking Methodology

To keep these listings accurate and useful, every Employer of Record featured on this page goes through a manual review process before being included. We don’t rely on vendor submissions or surface-level feature comparisons.

Our evaluations focus on how EOR providers actually operate in practice. This includes entity coverage, local compliance handling, payroll accuracy, contract structure, onboarding timelines, pricing transparency, and verified customer feedback.

Providers are ranked based on overall performance across these areas, with greater weight given to consistent local execution and operational reliability rather than marketing claims or software features alone.

Check Our Detailed Ranking Methodology

Estimate the Total Cost of Hiring in Colombia

This estimate includes statutory employer obligations in Colombia, such as mandatory social security contributions and allowances, along with a standard EOR service fee. Actual costs may vary by salary, benefits, and provider, and should be used for budgeting and comparison rather than as a final quote.

The estimate reflects typical employment costs in Italy when hiring through an Employer of Record. Final pricing may differ based on compensation structure, benefits, and EOR provider terms.

Why use an EOR in Colombia

Why to Trust Us

Can’t find the best EOR solution on this page?

Unable to find the best EOR solution for your business here? Explore our extensive list of EOR solutions.

Hiring in Colombia

Companies hire in Colombia for a few clear reasons. The talent pool is deep, especially across engineering, operations, design, and customer support. Time zone overlap with North America helps, and labor costs are still reasonable compared to many global markets. On paper, it looks simple.

Where things get tricky is employment law. Colombia has strong worker protections, mandatory benefits, and strict rules around contracts, termination, and social security contributions. Miss a step, and small mistakes can turn into expensive corrections later.

That’s where an Employer of Record helps. The EOR becomes the legal employer in Colombia, runs payroll, manages benefits, and makes sure contracts follow local rules. You still manage the day-to-day work, but the compliance risk sits with the EOR, not your company.

In this guide, we'll break down everything, how EORs work in Colombia, what to expect on pricing, and which providers are actually reliable. We’ve also reviewed recent user feedback and community sentiment so you’re not just reading feature lists, but getting a sense of how these platforms perform in real hiring situations.

Best Employer of Record Providers for Colombia Hiring

The following providers are evaluated by companies hiring employees in Colombia, based on compliance coverage, payroll capability, and operational fit.
hellopebl_logo

Pebl

Avg 4.6 (507 Ratings Analyzed)
About Pebl
Company: Velocity Global, LLC
Employees: 501-1000
Established: 2014
HQ: Denver, Colorado, United States
Support Offered By Pebl
Email Support
Live Chat
Tutorial Videos & Documentation
Phone
Social Media

Pebl’s Employer of Record (EOR) solution helps companies hire full-time employees in over 185 countries without setting up local entities. It handles everything from onboarding and compliant contracts to payroll, taxes, and benefits, all through a simple online platform. With local compliance built in, support for offboarding, and clear cost structures, it makes global hiring smooth and legally safe. Companies can expand internationally while Pebl takes care of the legal and administrative details.

Why we picked Pebl

Pebl works nicely for smaller teams or companies hiring their first employee in Colombia. It keeps things straightforward and avoids unnecessary complexity.

If your main goal is to stay compliant without learning every detail of Colombian labor law, Pebl does the job without making the process feel heavy.

Pros
Fast global hiring without setting up entities
Streamlined onboarding and payroll
Local benefits administration handled
Strong customer support and guidance
Easy-to-use platform with centralized dashboard
Cons
Can be more costly than setting up your own entity long-term
Limited customization in some local employment terms
Not ideal for companies wanting full local presence
Some delays in certain country-specific processes
Check Pebl current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
EOR
$599
Per month/employee
Multiplier Logo

Multiplier

Avg 4.7 (3,059 Ratings Analyzed)
About Multiplier
Company: Multiplier Technologies Pte. Ltd.
Employees: 501-1000
Established: 2020
HQ: New York, New York, United States
Support Offered By Multiplier
Email Support
Live Chat
Tutorial Videos & Documentation
Phone
Social Media

Multiplier is a global employment platform that helps businesses hire full-time employees across 150+ countries without setting up local entities. It takes care of locally compliant contracts, automated payroll in multiple currencies, benefits, taxes, and onboarding—all in one dashboard. With built-in tools for managing expenses, equity, and freelancer payments, it simplifies international hiring and keeps everything compliant. Designed for fast-growing teams, Multiplier makes it easy to expand globally while staying focused on what really matters: building great teams.

Why we picked Multiplier

Multiplier makes sense if speed matters. Hiring in Colombia can move quickly when paperwork is handled properly, and Multiplier is good at keeping things moving without cutting corners.

It’s especially helpful for startups or growing teams that want to onboard talent fast but still stay within local labor rules.

Pros
Fully compliant local contracts
Handles payroll, taxes, and benefits
Simple, user-friendly dashboard
Supports equity and freelancer payments
Real-time cost estimation before hiring
Quick onboarding process
Cons
Pricing may be high for small startups
Limited customization in some country-specific benefits
Not ideal for short-term or project-based hiring
Support response times can vary depending on region
Check Multiplier current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor
$40
per contractor/month
Payroll
Contact for pricing
EOR
$400
per employee/month
Oysterhr Logo

Oyster HR

Avg 4.5 (1,200 Ratings Analyzed)
About Oyster HR
Company: Oyster HR Inc.
Employees: 501-1000
Established: 2020
HQ: Charlotte, North Carolina, United States
Support Offered By Oyster HR
Email Support
Live Chat
Tutorial Videos & Documentation
Social Media

Oyster is a global Employer of Record platform that helps companies hire full-time talent across 180+ countries without setting up local entities. It manages everything from compliant contracts and localized onboarding to automated payroll and benefits in local currencies. With built-in legal insights, a cost calculator, and dedicated support, Oyster makes international hiring simple and fast. It also protects intellectual property and ensures compliance with local labor laws, letting businesses scale globally without legal complexity.

Why we picked Oyster HR

Oyster HR works well for companies that prioritize transparency and consistency across their global workforce.

In Colombia, where employee protections are strong, Oyster’s approach helps balance compliance with a clear employee experience. It’s often selected by teams that want structure but still value a human touch.

Pros
Handles local compliance, payroll, and taxes
Quick onboarding with region-specific contracts
Offers local benefits and currency payments
Transparent pricing with cost calculators
Scales easily for teams of any size
Cons
May be costly for very small teams
Limited customization for unique contract needs
Support speed may vary by region
Requires trust in third-party handling legal employment
Check Oyster HR current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor
$29
per contractor/month
Payroll
$25
per employee/month
EOR
$599
per employee/month
Remofirst Logo

Remofirst

4.6 (200 Reviews Analyzed)
About Remofirst
Company: Remofirst, Inc.
Employees: 11-50
Established: 2021
HQ: California, United States
Support Offered By Remofirst
Email Support
Live Chat
Tutorial Videos & Documentation
Phone
Account Manager

Remofirst is a global Employer of Record (EOR) platform that helps businesses hire full-time employees in over 180 countries without setting up local entities. It takes care of everything from onboarding, payroll, taxes, and compliance to providing country-specific benefits. Through a simple platform, you can manage contracts, payments, and employee records all in one place.

Why we picked Remofirst

Remofirst appeals to teams that are cost-conscious but still want reliable coverage in Colombia. It doesn’t overcomplicate things, which works well for startups or lean teams hiring remote talent. As long as expectations are clear, it handles the essentials without unnecessary overhead.

Pros
Quick employee onboarding across 180+ countries
Full compliance with local labor laws
Centralized platform to manage payroll and benefits
Cost-effective compared to setting up entities
Dedicated account manager support
Transparent pricing with no hidden fees
Cons
Limited control over local HR processes
Some countries may have slower onboarding timelines
Check Remofirst current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractors
Custom Price
Contractors
Premium Contractors
$25
Per Person/Month
EOR
$199
Per Person/Month
Deel Logo

Deel

Avg 4.8 (16,900 Ratings Analyzed)
About Deel
Company: Deel, Inc.
Employees: 1001-5000
Established: 2019
HQ: San Francisco, California, United States
Support Offered By Deel
Email Support
Tutorial Videos & Documentation
Social Media

Deel is a global HR platform that lets companies hire full-time employees and contractors in over 150 countries through its Employer of Record service. It manages everything from compliant contracts and onboarding to international payroll, taxes, and benefits. With built-in tools for time-off tracking, expense management, and multi-currency payments, Deel simplifies global workforce management. The platform also offers visa support and integrates with top HR systems, making it easy to scale teams while staying compliant and efficient.

Why we picked Deel

Deel works well in Colombia because it handles the small but important details that tend to trip companies up, especially around contracts and benefits.

Colombian employment law is very specific, and Deel’s local setup makes it easier to get terms right the first time instead of fixing them later. It’s a solid option for teams that want clarity without micromanaging every compliance step.

Pros
Fast global hiring without entity setup
Full compliance with local labor laws
Easy-to-use platform for HR and finance teams
Supports both employees and contractors
Multiple payment options and currencies
Localized contracts and benefits
Cons
Can be expensive for smaller teams
Limited customization in some contract templates
Complex pricing structure for some services
Some features depend on the country’s local laws
Check Deel current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor
$49
per contractor/month
Payroll
$29
per employee/month
EOR
$599
per employee/month
Rippling-Logo

Rippling

Avg 4.8 (13,600 Ratings Analyzed)
About Rippling
Company: Rippling People Center, Inc.
Employees: 1001-5000
Established: 2016
HQ: California, United States
Support Offered By Rippling
Email Support
Live Chat
Tutorial Videos & Documentation

Rippling’s Employer of Record (EOR) lets you hire full-time employees across the globe without setting up local entities. It handles everything, from compliant contracts and automated payroll in local currencies to tax filings and benefits management. You can onboard employees in minutes, manage IT access, and keep all HR data in one place.

Why we picked Rippling

Rippling is useful when hiring in Colombia is closely tied to HR systems, IT access, and internal workflows. It’s not just about payroll, it’s about connecting employment data with the rest of your operations. Teams that already use Rippling elsewhere often find it convenient to extend it into Colombia.

Pros
Easy and fast international hiring
Built-in compliance with local laws
Automated payroll in local currency
Seamless onboarding and offboarding
Integrated HR, IT, and finance tools
Transparent cost breakdown
Cons
Can be pricey for smaller teams
Limited support in some less common countries
Check Rippling current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Payroll
$8
Per Employee/Month
Contractor
$25
Per Contractor/Month
EOR
$500
Per Employee/Month

Omnipresent EOR

Avg 4.6 (860 Ratings Analyzed)
About Omnipresent EOR
Company: Omnipresent Group Limited
Employees: 251-500
Established: 2019
HQ: London, England, United Kingdom
Support Offered By Omnipresent EOR
Email Support
Live Chat
Tutorial Videos & Documentation
Social Media

Omnipresent is a global Employer of Record platform that helps companies hire full-time employees in over 160 countries without setting up local entities. It takes care of employment contracts, payroll, taxes, and benefits, all tailored to local laws. With a simple dashboard, businesses can manage onboarding, payments, and compliance from one place. Omnipresent ensures each employee receives the right support, from localized benefits to proper legal protections, making international hiring smooth, fast, and fully compliant.

Why we picked Omnipresent

Omnipresent is often chosen by companies that want hands-on support while navigating Colombia’s employment structure.

The local guidance is helpful when dealing with benefits, notice periods, and statutory obligations. It’s a good fit when you want reassurance that someone is watching the local details closely.

Pros
Hire in 160+ countries without setting up entities
Handles local compliance, payroll, and benefits
Saves time on legal and HR admin
Supports remote and distributed teams
Offers a user-friendly dashboard for managing global hires
Ensures local benefits and protections for employees
Cons
Can be more costly than hiring directly in some regions
Limited customization in local contracts
Dependent on Omnipresent’s timelines and processes
Some features may vary by country due to legal restrictions
Check Omnipresent EOR current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor Solution
£29
per contractor/month
Employer of Record
Starting from £499
per employee/month
Custom Solutions
Contact for Pricing
Borderless AI Logo

Borderless AI

Avg 4.7 (170 Ratings Analyzed)
About Borderless AI
Company: Borderless AI Ventures Inc, Inc.
Employees: 51-100
Established: 2002
HQ: Toronto, Ontario, Canada
Support Offered By Borderless AI
Email Support
Tutorial Videos & Documentation
Phone
Social Media

Borderless AI is a global hiring platform that acts as an Employer of Record, helping businesses hire full-time employees in over 170 countries without setting up local entities. It combines AI-powered tools with built-in legal infrastructure to manage compliant contracts, automated payroll, localized benefits, and smooth onboarding. With its AI assistant, Alberni, users get instant support on local labor laws and hiring timelines. The platform simplifies complex processes so companies can hire globally with confidence and speed.

Why we picked Borderless AI

Borderless AI one stands out for companies that want flexibility while hiring in Colombia. Borderless AI is useful when you’re dealing with mixed setups, full-time employees, local nuances, and evolving headcount.

It’s practical for teams that don’t want a rigid system and prefer guidance that adapts as they grow in the region.

Pros
Fast, compliant global hiring
No need to set up local entities
AI-powered contract creation
Automated payroll and benefits
Covers over 170 countries
Built-in IP and compliance protection
Cons
Not ideal for short-term or freelance hires
Pricing may be high for early-stage startups
Limited customization in contract templates
Requires internet access for all platform features
Check Borderless AI current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Employer of Record
$579
per month
Contractor Management
$49
per month
Global Payroll
$29
per month
Remote Logo

Remote EOR

Avg 4.5 (5,799 Ratings Analyzed)
About Remote EOR
Company: Remote Technology, Inc.
Employees: 1001-5000
Established: 2019
HQ: San Francisco, California, United States
Support Offered By Remote EOR
Email Support
Live Chat
Tutorial Videos & Documentation
Social Media

Remote is a global HR platform that lets companies hire, pay, and manage employees in other countries without setting up local entities. With built-in features like Employer of Record services, global payroll, local benefits, and contractor management, it simplifies international hiring. It ensures full compliance with local tax and labor laws, while offering a self-serve dashboard, time-off tracking, and equity management. Remote helps businesses grow teams anywhere in the world—legally, easily, and with full peace of mind.

Why we picked Remote

Remote is a strong choice for companies that care deeply about compliance and employee experience in Colombia. From benefits administration to payroll accuracy, it tends to be thorough.

It’s often chosen by teams that plan to hire long-term and want a setup that feels stable and well-structured for employees on the ground.

Pros
Easy global hiring without setting up local entities
Full legal compliance in multiple countries
Built-in global payroll and benefits management
Owned entities, not third-party dependent
Simple, user-friendly dashboard
Local HR and legal support available
Cons
Can be expensive for small businesses
Limited in countries where Remote doesn’t yet operate
No direct control over local employee contracts
Onboarding times may vary by region
Check Remote EOR current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Employer of Record
$699
Per employee/month
Payroll
$29
per employee/month
Contractor Management
$29
per contractor/month
Contractor Management Plus
$99
per contractor/month
Contractor of Record
From $325
per contractor/month
Papaya Global Logo

Papaya Global

Avg 4.2 (125 Ratings Analyzed)
About Papaya Global
Company: Papaya Global Ltd.
Employees: 501-1000
Established: 2016
HQ: New York, New York, United States
Support Offered By Papaya Global
Email Support
Tutorial Videos & Documentation
Phone
Social Media

Papaya Global is a global Employer of Record platform that helps companies hire and manage employees in over 160 countries without setting up local entities. It handles employment contracts, payroll in local currencies, tax compliance, and benefits tailored to each region. With a centralized platform, businesses can track workforce data, automate onboarding, and access real-time reports. Papaya also ensures strong data security and keeps hiring fully compliant with local labor laws, making global growth simpler and more efficient.

Why we picked Papaya Global

Papaya Global fits well for companies hiring in Colombia as part of a larger international expansion. If Colombia is one of several countries on your hiring map, Papaya’s centralized payroll and reporting make life easier.

It’s less about simplicity and more about control and visibility across borders.

Pros
Centralized platform for payroll and workforce management
Ensures legal compliance and local tax handling
Offers localized benefits and contract support
Real-time data tracking and reporting
Strong data security and privacy features
Cons
May be complex for very small teams
Support response time can vary
Limited control over local employment nuances
Integration options may require technical setup
Check Papaya Global current pricing plans to choose from. You may also check the parent site for more updated details about pricing options and recent changes if any.
Contractor
$30
per contractor/month
Payroll
Contact for pricing
EOR
$599
per employee/month

Explore EOR Solutions for Other Countries

If you have plans to hire in any other country, don't forget to explore our best EOR country guides to find the best fit for your business.
United-States-flag
United States
26 Providers
New Zealand Flag
New Zealand
22 Providers
Canada Flag
Canada
27 Providers
Mexico Flag
Mexico
20 Providers
France Flag
France
25 Providers
Ireland Flag
Ireland
20 Providers
Italy Flag
Italy
21 Providers
Poland Flag
Poland
18 Providers
Malaysia Flag
Malaysia
23 Providers
Austria Logo
Austria
20 Providers
Hong Kong Flag
Hong Kong
24 Providers
India Flag
India
19 Providers
Additional EOR Solutions in Colombia
Here are some additional EOR solutions that can be very effective in Colombia which you may explore as well.
Agile HRO Logo

Agile HRO

Agile HRO is best for businesses looking to hire and manage global talent quickly and compliantly without setting up local entities.
Rating
Avg 3.9 (30 Reviews Analyzed)
Country Coverage
100+
Starting Price
399

Cadana

Best for staffing platforms, global payroll providers and Employer-of-Record (EOR) services that need fast, compliant, and scalable cross-border payment infrastructure.
Rating
Avg 4.2 (8 Reviews Analyzed)
Country Coverage
100+
Starting Price
Custom
Emerald Technology Logo

Emerald Technology

Emerald Technology is best for companies looking to hire and manage global talent quickly and compliantly without setting up local entities.
Rating
Avg 4.1 (170 Ratings Analyzed)
Country Coverage
160
Starting Price
£500
Global Expansion Logo

Global Expansion

Global Expansion is best for companies that want to hire international employees quickly and compliantly without setting up local entities.
Rating
Avg 4.6 (160 Ratings Analyzed)
Country Coverage
200+
Starting Price
Custom
Rivermate Logo

Rivermate

Rivermate is best for hiring and managing international employees legally and effortlessly—without setting up a local entity.
Rating
Country Coverage
150+
Starting Price
€299
Asanify Logo

Asanify

Asanify is best for businesses that want to hire and manage international employees legally and efficiently without setting up local entities.
Rating
Country Coverage
80+
Starting Price
$199
CXC Global Logo

CXC Global

CXC Global’s Employer of Record service is best for companies looking to hire international talent quickly and compliantly without setting up local entities.
Rating
Avg 4.0 (20 Ratings Analyzed)
Country Coverage
100+
Starting Price
Custom

Horizons EOR

Horizons is best for hiring and managing international employees legally without setting up local entities.
Rating
Avg 4.4 (304 Ratings Analyzed)
Country Coverage
180+
Starting Price
$299
1EOR Logo

1EOR

1EOR is best for quickly and legally hiring international employees without setting up a local entity.
Rating
Country Coverage
80+
Starting Price
$199

Table of Contents

Hiring in Colombia: Employment Law, Payroll, and Employer of Record Guide

Hiring in Colombia isn’t chaotic, but it is layered. On paper, the rules look manageable. In practice, they’re detailed, employee-protective, and not very forgiving when handled casually. Once someone is employed, the relationship is governed tightly by labor law, and assumptions don’t hold much weight.

Contracts must reflect statutory benefits. Payroll has mandatory social security contributions that stack up quickly. Terminations follow formal paths, and “we’ll sort it out later” usually ends with back payments or disputes.

Many companies realize this only after their first hire. Colombia doesn’t work well as a trial-and-error market when it comes to employment. That’s why foreign companies often turn to an Employer of Record early instead of trying to interpret labor law on their own.

An EOR legally employs your Colombian team members on your behalf. They handle contracts, payroll, benefits, tax filings, and compliance. You stay focused on the work, while the legal responsibility stays local.

For most teams, this is the simplest way to hire in Colombia without setting up an entity or learning the system the hard way.

How Employment Law Works in Practice in Colombia

Colombian labor law is built to protect continuity and employee rights. Once an employment relationship exists, informal agreements don’t carry much weight. What matters is what’s written, what’s paid, and what’s reported.

Written contracts are mandatory. They need to clearly outline role, salary, working hours, benefits, termination terms, and employment type. Even small mismatches between what’s promised and what’s paid can become an issue later.

Adjustments are possible, but they’re never casual. Changes to salary, contract type, or benefits usually require documentation and mutual agreement. Fixing mistakes after payroll has already run is where costs tend to rise.

This is not a system that rewards shortcuts. Getting things right at onboarding saves far more effort than correcting them later.

Contracts, Employment Types, and Classification Risks

Most employees in Colombia are hired under indefinite-term contracts, which is the default expectation. Fixed-term contracts are allowed, but they’re regulated and can’t be renewed endlessly. If a fixed-term contract is extended improperly, it can automatically convert into an indefinite one.

Probation periods are allowed, typically up to two months, but employees on probation still receive full statutory benefits. Probation doesn’t reduce employer obligations, it simply allows termination with fewer formalities during that window.

Misclassification is one of the biggest risks foreign companies face. Labeling someone as an independent contractor doesn’t make it true. Authorities look at control, dependency, exclusivity, and how the work is performed.

If someone looks like an employee in practice, they’re treated as one legally. An EOR removes this risk by employing workers through a compliant local structure.

Minimum Wage and Salary Realities

Colombia operates under a national minimum wage, adjusted annually. While this simplifies things compared to regional wage systems, employers still need to factor in mandatory allowances that sit on top of base pay.

The most common is the transport allowance, which applies to employees earning up to a defined salary threshold. Many foreign employers miss this because it doesn’t appear optional, but it is statutory.

Salary discussions in Colombia often focus on net pay expectations, while legal obligations apply to gross salary. An experienced EOR bridges that gap so payroll aligns with both law and employee expectations.

Payroll, Taxes, and Mandatory Social Security Contributions

Payroll in Colombia involves several mandatory contributions that significantly affect total employment cost. Employers are responsible for enrolling employees and making timely payments.

Core systems include:

  • Health insurance (EPS)
  • Pension contributions
  • Occupational risk insurance (ARL)
  • Family compensation funds (Caja de Compensación)

Both employer and employee contribute, with the employer carrying the larger share. Missing or late payments can trigger penalties and create issues during audits or disputes.

Salaries are usually paid monthly, with formal payslips expected. Payroll accuracy matters more than speed here. Once trust is lost, it’s hard to regain.

Mandatory Contributions and Allowances Overview (Colombia)

RequirementWho PaysWhat It CoversWhy It Matters
Health Insurance (EPS)Employer & EmployeePublic healthcare coverageMandatory enrollment
PensionEmployer & EmployeeRetirement savingsRequired for all employees
Occupational Risk (ARL)EmployerWork-related injury coverageBased on role risk level
Family Compensation FundEmployerSocial and family benefitsStatutory obligation
Transport AllowanceEmployerCommuting supportRequired for eligible salaries
Income Tax WithholdingEmployee (withholding)Personal income taxMust be calculated correctly

Working Hours, Leave, and Public Holidays

The standard workweek in Colombia is capped at 48 hours, though recent reforms are gradually reducing this. Overtime is regulated and must be paid at statutory rates.

Employees are entitled to:

  • 15 days of paid annual leave per year
  • Paid public holidays
  • Paid sick leave (with employer and social security coordination)
  • Maternity and paternity leave as defined by law

Leave tracking affects payroll directly. Manual tracking often breaks down during long absences. An EOR keeps records aligned so payroll remains compliant throughout leave periods.

Termination, Notice, and Severance

There is no at-will employment in Colombia. Termination must follow legal grounds or be structured as a mutual agreement.

Severance calculations depend on contract type, tenure, and reason for termination. Getting this wrong usually leads to disputes, not quick exits.

Many companies rely on negotiated settlements to reduce risk. These still need to follow legal guidelines. One of the strongest advantages of an EOR is having local support when employment needs to end.

Onboarding Employees Through an EOR

Onboarding through an EOR in Colombia is usually smooth when documents are ready. The EOR issues contracts, registers employees with social security systems, and sets up payroll.

Delays usually happen when job roles are unclear or when compensation structures don’t align with statutory rules. Established EORs flag these issues early rather than after payroll runs.

EOR vs Setting Up a Local Entity in Colombia

FactorUsing an EORSetting Up a Local Entity
Time to hireDays to weeksSeveral months
Upfront costLowHigh
Compliance handlingManaged locallyManaged internally
FlexibilityHighLimited
Best forSmall teams, testingLarge, permanent operations

Many companies start with an EOR and reassess later. Some transition to an entity. Many never need to.

How to Choose the Best EOR in Colombia

Not all EORs handle Colombia with the same depth. Differences usually surface after onboarding.

Look for providers that:

  • Clearly explain social security costs upfront
  • Understand transport allowance rules
  • Offer support during termination, not just hiring
  • Provide transparent payroll breakdowns
  • Have real local operations, not just legal coverage

The right EOR feels like a local advisor, not just a platform.

Final Thoughts

Colombia’s employment system is consistent, but it doesn’t reward improvisation. Companies that respect the structure usually have smooth hiring experiences. Those who don’t tend to learn the rules during disputes, not onboarding.

For most foreign employers, an EOR is the safest and most flexible way to hire in Colombia. With the right partner, you spend your time building your team instead of fixing compliance mistakes after the fact.

Frequently Asked Questions About EOR in Colombia

Know about about the questions you may have before you make a decision to choose your preferred EOR solution for your Colombia hiring.
Indefinite-term contracts are the default and most common form of employment in Colombia. Fixed-term contracts are allowed, but they are tightly regulated and must meet specific conditions.

Improper renewals or repeated extensions can cause a fixed-term contract to automatically convert into an indefinite one. For most foreign employers, starting with an indefinite contract is the safest and least risky option.
Employees often discuss compensation in net terms, but employment contracts and payroll are always based on gross salary.

This distinction matters because statutory contributions, taxes, and benefits are calculated on gross pay. Misalignment between net expectations and gross obligations is a common source of confusion for foreign employers.

Yes. A compliant Employer of Record handles full social security registration and ongoing payments, including:

  • Health insurance (EPS)
  • Pension contributions
  • Occupational risk insurance (ARL)
  • Family compensation funds (Caja de Compensación)

These registrations are mandatory from the first day of employment and must be kept current to avoid penalties.

Yes. Severance is common and legally required in many termination scenarios, especially for indefinite-term contracts or terminations without cause.

Severance calculations depend on contract type, length of service, and the reason for termination. They are not discretionary and cannot be avoided through informal agreements.
Yes, bonuses and commissions can be paid through an EOR, but they must be structured carefully.

Some variable payments are considered part of the salary base and affect social security contributions, while others may be excluded if clearly defined. Incorrect structuring can increase employment costs retroactively.
Yes. Written contracts are mandatory in Colombia and must clearly define role, salary, working hours, benefits, contract type, and termination terms.

Verbal agreements carry little weight in disputes. Any mismatch between contract terms and payroll execution can create compliance risk.
Probation periods are allowed and typically last up to two months.

During probation, employers can terminate employment more easily, but all statutory benefits and social security contributions still apply in full. Probation does not reduce employer obligations.

In addition to base salary, employers must account for statutory benefits such as:

  • Social security contributions
  • Family compensation fund payments
  • Transport allowance (for eligible salary levels)
  • Prima de servicios (statutory bonus paid twice per year)

These costs significantly increase the total cost of employment and must be factored into budgeting.

No. Colombia does not allow at-will employment.

Terminations must be legally justified or structured as mutual agreements. Improper termination often leads to severance obligations, settlements, or labor disputes.
Manjuri-Dutta
Article By: Manjuri Dutta

Manjuri Dutta is the co-founder and Content Editor at Employer Records, a platform specialized in discovering best Employer-of-Record services for global hiring. She brings a thoughtful and expert voice to articles designed to inform HR leaders, practitioners, and tech buyers alike.

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