Colombia

Working with remote teams from Colombia comes with many benefits but there’s also no shortage of challenges. With Satellite Teams’ easy-to-use platform, however, this process becomes much easier.

We’ll Show You Why Finding Global Talent Doesn’t Have to Be Hard

Satellite Teams’ platform offers a comprehensive solution to recruit and manage highly skilled remote workers from Colombia while guaranteeing adherence to local labor laws, regulations, payroll, taxes, and benefits administration, as well as other essential aspects of HR management.

A Look at the Talent in Colombia

Extensive Talent Pool

Colombia has South America’s second-largest population, making it one of the most competitive countries on the continent.

A Buzzing Bilingual Scene

Colombia has a standout bilingual (English and Spanish) talent that makes it perfect for any company looking to enter Spanish-speaking markets.

Expertise in a Variety of Fields

Colombia’s labor force possesses expertise in a variety of diverse fields such as healthcare, banking, energy, and more.

Benefits of Hiring Talent From Colombia

Discover why Colombia is an excellent location for attracting worldwide talent to support your business.

Growing GDP Growth

Colombia benefits from a steady GDP growth rate of 3.3%, which offers great opportunities for businesses in the country.

Ease of Doing Business

Colombia offers a business-friendly environment that makes it hassle-free for entrepreneurs to conduct their operations with ease.

Relatively Low Cost of Living

Colombia ranks 131 out of 139 countries surveyed for a cost of living index. This low cost of living makes it easy for businesses to attract and retain talent in the country.

Most Hired Roles in Colombia

Graphic Designer

B. Duran

Crafty graphic designer with an eye for detail and proficient in all parts of Adobe Creative Suite.

Data Entry Specialist

V. Vega

Experienced data entry specialist who possesses exceptional accuracy, attention to detail, and typing speed, coupled with excellent organizational and time management skills.

Network Engineer

J. Figueroa

Expert in designing, implementing, and maintaining computer networks. Possess a deep understanding of network architecture, protocols, security, and troubleshooting, as well as the ability to collaborate with different stakeholders and provide effective solutions to network-related issues.

What It Takes To Hire Global Talent in Colombia

  • Minimum Wage
    Starting from January 1st, 2023, the minimum monthly wage in Colombia stands at COP 1,160,000, along with a transportation subsidy of $140,606 COP per month.

  • 13th Month Pay
    Colombian employees with an ordinary salary receive an extra month's pay split between June and December, which is both customary and legally required. An ordinary salary applies to those earning less than 15,080,000 Colombian pesos per year, with the 13th-month payment excluded from the total gross salary. Those earning 15,080,000 Colombian pesos or more receive an integral salary and do not receive the 13th salary payment.

Employer Income Tax Obligations:

  • Employers in Colombia must contribute to funds including a 12% contribution to the Pension Fund, an 8.5% contribution to the Healthcare Fund, a contribution of 0.348-8.7% to the General Labor Risk Pool, a 4% contribution to the Family Allowance Fund, a 3% contribution to the Colombian Institute for Family Welfare (ICBF), and a 2% contribution to the National Learning Service (SENA). These contributions amount to a total cost of employment ranging from 29.848% to 36.2%.

Employee Payroll Tax Obligations:

  • Employees in Colombia are also subject to payroll taxes. These include a 4% contribution to the Pension Fund, a 4% contribution to the Healthcare Fund, and a contribution of 0.348-8.7% to the General Labor Risk Pool.

Employee Income Tax Obligations::

  • In terms of income taxes, the percentage varies based on the employee's income level. For instance, individuals earning up to 1,090 tax units are not required to pay any income tax.

    It's worth noting that in Colombia, the tax system underwent significant reform in 2006 with the introduction of the 'tax unit' (Unidad de Valor Tributario or TVU). The value of the tax unit may be adjusted annually, and in 2021, it is COP 36,308. Therefore, the income thresholds for each income tax bracket may vary from year to year.

  • Statutory leave:
    All employees in Colombia are entitled to 15 working days of paid annual leave and 18 paid public holidays.

  • Pregnancy and maternity leave:
    Mothers in Colombia receive 18 weeks of paid maternity leave at 100% of their standard salary, starting up to two weeks before the due date or on the day of birth. The same benefit applies to adoptive mothers and partners of women unable to care for the child. Employers pay upfront but can later get a refund from the government.

  • Paternal leave:
    Colombian fathers receive two weeks of paternity leave at 100% of their salary.

  • Other leaves
    • Bereavement leave: In Colombia, employees can take up to five consecutive days of leave.
    • Marriage leave: After getting married, employees are entitled to 5 consecutive days of paid leave.

Any party seeking to unilaterally terminate an employment contract must provide a written statement indicating the cause or motive behind such termination, except under certain special circumstances. Employers must also provide a "fair" reason for terminating an employee in order to avoid legal repercussions in the form of penalties and fines.

Furthermore, the termination process must adhere strictly to the regulations established by employment contract law, salary law, and social security regulations.

  • Notice period
    The statutory period in Colombia depends on a number of factors. If an employee is terminated for misconduct, there is no requirement for notice. However, if the worker is on a fixed-term contract, written notice must be provided to the employee at least 30 days before the contract ends. On the other hand, for employees not on fixed-term contracts, a notice of at least 15 days must be given when the employee is terminated due to poor performance. It is worth noting that in such cases, the employee has the right to respond to the termination within 24 hours to challenge the decision.

  • Severance pay
    Colombian employees have the right to severance pay depending on their salary, the nature of agreement with an employer, and the nature of termination.

    For a fixed-term agreement, the severance payment is the employee's remaining salary until the contract's end date. However, for indefinite agreements, the amount of severance payment depends on the employee's current salary and the duration of their service. Workers who earn less than COP$9,085,260 receive 30 days' pay for their first year of employment and 20 days' pay for each subsequent year. Meanwhile, those who earn more than 10 times the monthly minimum wage receive 20 days' pay after one year and 15 days' pay for every additional year.

  • Probationary period
    Probationary periods should be in writing and have a maximum duration of two months for undefined term contracts and fixed term contracts of one to three years. For fixed-term contracts of less than a year, the probationary period cannot be longer than one-fifth of the agreed term, up to a maximum of two months.

Compare Costs of Hiring in Colombia

Colombia

Legal Specialist

Average Monthly Salary

$2,390 - $3,900

United States

Legal Specialist

Average Monthly Salary

$5,500- $6,700

Get The Best Talent Colombia Has To Offer

Discover a straightforward way to connect with the finest in Colombia's workforce. Contact us today to learn more.

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