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Payroll in Colombia
Payroll in Colombia runs in COP on a usually monthly or semi-monthly cycle, with statutory employer contributions and service bonus, cesantías, cesantías interest and vacation accruals are central cost components. Gracemark operates it end-to-end, humans, not tickets.
Currency
COP, Colombian peso
Payroll cycle
Usually monthly or semi-monthly
Working week
42 hours from July 2026 under the staged statutory reduction
Minimum wage
National monthly wage and transport allowance are set annually; use the current government decree and eligibility rules
13th-month
Service bonus, cesantías, cesantías interest and vacation accruals are central cost components
Employer cost
Commonly 21%–30% before service fees, depending on tax exemptions, risk class, compensation and benefit treatment
Probation
Up to two months, subject to written-contract rules
Notice period
Unjustified termination indemnity depends on contract type, salary and tenure
Two ways to run payroll in Colombia
Own-entity payroll
For long-term presence in Colombia. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on South America time.
EOR-run payroll
No entity in Colombia? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in 1–2 weeks (eor), no local incorporation.
Compliance essentials in Colombia
- Prima de servicios (legal bonus) equals one month's pay split across the year
- Cesantías (severance fund) plus interest must be deposited annually
- Working week is gradually reducing toward 42 hours
- Strong, fast-growing nearshore tech hub (Medellín, Bogotá)
- Parafiscal contributions add meaningfully to cost
Get a payroll quote for Colombia
Send your headcount and salary band. We reply with employer burden, net-to-gross, and setup timeline, no sales scripts.
Deeper guide
Hiring guide: Colombia →
Employ without entity
EOR services →
All countries
Global payroll overview →