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Colombia's labor law provides 15 consecutive working days of paid annual leave (one and two-thirds of a day for every month of service), after completion of 12 months of continuous service. Employer and employee can agree in writing, upon request of the employee, that up to half of the vacations be paid in money.

The amount of the annual leave benefit is equal to the basic salary that the employee was earning the day on which the annual leave started. Payment for annual leave for employees with a variable salary is calculated as the average wage earned in the year immediately preceding the year in which annual leave commences.

Employees must take at least 6 continuous working days of vacation annually, which are not cumulative. However, the parties may agree to accumulate remaining leave for up to 2 years. The accumulation may be for up to 4 years, when it comes to technical, specialized, trusted, management employees or foreign employees who provide their services in places other than the residence of their relatives.

According to Colombia's labor code, an employee is entitled to sick leave of up to 180 days (6 months) in the case of a non-occupational injury or disease. The law provides paid sick leave as follows:

• 2/3 (66.67%) of wages during the first 90 days of sick leave, and
• 1/2 (50%) of wages during the remaining period of sick leave

The state health system is responsible for payment during non-occupational sickness leave. The benefits are paid through the state social security system that is funded through employees' (4% of monthly earnings) and employers' (8.5% of payroll) contributions.

Female employees are entitled to 18 weeks of maternity leave with full pay, including 1 week of prenatal and 17 weeks of post-natal leave. If, for any medical reason, the expectant mother requires an additional week prior to delivery, she may take 2 weeks, with 16 weeks postpartum. If, in a different case, for a medical reason, she cannot take the week prior to delivery, she may take the 18 weeks immediately postpartum. Maternity leave can be extended up to 2 additional weeks in case of multiple births. In the case of miscarriage and premature birth, a female employee is entitled to paid leave of 2 to 4 weeks.

The leave is fully paid through Colombia's social security system, and the pay is provided in advance. Maternity leave and related benefits are also extended to adoptive mothers. It is illegal for an employer to dismiss a female employee during her maternity leave and nursing period.

Colombia's Labor Code provides paid paternity leave of 2 weeks. Fathers are required to present a birth certificate for the leave to be approved. The certificate must be submitted to the EPS (Entidad Prestadora de Salud) within 30 days of birth. Paid paternity leave is available for the children born to the spouse or permanent partner, as well as for the adoptive father. In addition to this, parents may freely divide the last 6 weeks of the maternity leave between themselves, provided the mother takes at least the first 12 weeks after childbirth. Shared parental leave will be paid based on the salary of the parent taking the leave for the corresponding period. Payment will be the responsibility of the respective employer or EPS.

Paternity leave will be extended by 1 additional week for each percentage point decrease in the structural unemployment rate compared to its level at the time of the entry into force in 2021, without in any case exceeding 5 weeks.

Minimum Wage

Effective January 1, 2026, Colombia increased the minimum monthly salary to COP 1,750,905 (Colombian pesos). The monthly amount of transportation aid for 2026 increased to COP 249,095. The monthly transportation aid must be paid to employees who earn up to double the monthly minimum wage.

Overtime, Holiday & Vacation Pay

Generally, overtime work may not exceed 2 hours per day and 12 hours per week. If the daily working hours are scheduled at 10 hours, overtime work is not permitted. Employees who work beyond the stipulated hours (i.e., 44 hours per week) are entitled to overtime pay according to the following schedule:

• 125% of the regular hourly rate for overtime work during daytime hours
• 175% of the regular hourly rate for overtime work performed during nighttime hours

Employees are paid their regular salary while on annual leave. The annual leave benefit is equal to the basic salary the employee was earning the day the leave started. Payment for annual leave for workers with a variable salary is calculated as the average wage earned in the year immediately preceding the year in which the leave commences.

Effective July 1, 2025, work on Sundays and holidays are remunerated with a surcharge of 80% on the ordinary salary in proportion to the hours worked and will increase to 90% July 1, 2026, and to 100% July 1, 2026.

Notice Period

In Colombia, employers may terminate indefinite-term contracts without notice for just cause. Employees under indefinite-term contracts may unilaterally terminate by giving the employer 30 calendar days' prior written notice, without penalty for failing to do so.

Terminating a fixed-term contract requires prior notice of at least 15 days in cases of termination for just cause. Employers may also give an employee pay in lieu of notice when terminating a fixed-term contract.

Severance Benefits

According to the Labor Code of Colombia, dismissed employees are entitled to severance pay for their service. If the termination was unilateral and without cause, indefinite term employees are entitled to receive severance as follows:

• For employees earning less than 10 times the minimum legal monthly wages, the compensation is 30 days of salary for the first year of service and 20 days of salary for each additional year of service (proportional to the fraction of a year)
• For employees who earn 10 minimum legal wages or more, the compensation is 20 days of salary for the first year of service and 15 days of salary for each additional year of service (proportional to the fraction of a year)

To calculate severance pay, the last monthly salary earned by the employee is used as the basis, provided that it has not changed in the last 3 months.

In fixed-term contracts, the severance is paid as salary corresponding to the time remaining to fulfill the stipulated term of the contract or the period determined by the duration of the work or the contracted labor, in which case the severance pay shall not be less than 15 days.

Pension

The retirement age for males is 62 years and for females 57 years, with a required contribution period of 1,300 weeks. The pension is 55% to 65% of the basic monthly wage, plus 1.5% for each 50-week period of contributions after 1,300 weeks, up to 80% of the basic monthly wage. Basic monthly wage is average earnings in the 10 years before retirement. Persons who reached the retirement age but have not completed the required weeks of contribution are eligible for indemnity grant equal to the average weekly earnings multiplied by the number of weeks of contribution. Employees are required to contribute 4% of their monthly salary to the national pension system, and employers contribute 12%.

Dependents/Survivors Benefits

In Colombia, the survivors benefit is available to survivors of recipients of old age or disability pension or individuals who have paid at least 50 weekly contributions in the last three years before death. The pension is 45% of the deceased person's monthly earnings, plus 2% for each 50-week period of contributions exceeding 500 weeks, up to 75% of the deceased's monthly earnings. Orphan's pension is 20% of the deceased worker's retirement, and 30% is paid to the full orphan. If the deceased employee did not fulfill the conditions for contributions, his or her survivors get a lump sum grant equal to the average weekly earnings multiplied by the number of weeks of contribution.

In case of death due to occupational disease or injury, survivors receive a monthly pension as 75% of the base salary of the employee. If death is caused by a disability, the benefit is 100% of the base salary.

Invalidity Benefits

Social security insurance of Colombia provides for invalidity benefit in the case of a non-occupational accident, injury, or disease resulting in permanent invalidity that causes loss of more than 50% in the capacity to work. Employees should have contributed for at least 50 weeks in the last 3 years before the onset of disability to be eligible for the pension. Pension is calculated according to the degree of disability and the number of contributions paid. The minimum pension is the legal minimum wage, while the maximum pension is 75% of the base earnings.

The labor code of Colombia requires an employer to pay benefits to the employee in case of occupational diseases and accidents. In case of temporary disability, the employer must pay monetary assistance equal to the employee's remuneration for 180 days. For permanent disability, a monthly pension is paid based on the degree of disability and the requirement of constant care.

Personal Income Tax

Natural persons who are residents of Colombia are subject to income tax. Persons who stay in Colombia continuously or discontinuously for 183 days in a year are considered residents. Non-residents are subject to income tax only on their income from sources in Colombia. Spouses are taxed individually. The income tax year runs from January 1 through December 31. The tax rates in Colombia are progressive and range from 0% to 39%, depending on the annual taxable income.

The income tax slabs in Colombia are based on multiples of "Tax Units" (UVT). The value of UVT is COP 49,799 (Colombian pesos) for the year 2025, increasing to COP 52,374 from January 1, 2026.

Visas

In Colombia, the following visa categories are available:

• Visitor Visa (type V): for the foreigner wishing to visit Colombia once or several times or to stay temporarily in the country without this being permanent.
• Resident Visa (type R): for those aspiring to establish themselves or begin permanent residency in Colombia.
• Migrant Visa (type M): for the foreigner who wishes to enter or remain in the national territory with the intention of establishing himself/herself and does not meet the conditions for a type R visa.

Work Permits

The immigration law of Colombia requires foreign nationals to obtain a work visa for employment. A Residence Visa (R) allows visa holders to work in Colombia without an additional work permit. The first temporary worker’s visa must always be processed at Colombian consulates abroad. In all other cases it may be granted in Bogota, providing the applicant has a valid visa. The work visa is granted for 2 years for multiple entries. In the case of artistic, sports, or cultural groups, the visa is issued for 6 months. Fee for the visa is USD 50.

Applicants must submit employment contract, certificate of existence of the employer and proof of qualifications.

The legal minimum age of employment in Colombia is 15 years. Minors under 14 years of age cannot work in industrial companies, nor in agricultural companies when their work prevents them from attending school. Adolescents under 18 years old who wish to work, require authorization issued by the Labor Inspector or, failing that, by the Local Territorial Entity. The Labor Code of Colombia prohibits the employment of minors below the age of 16 years in dangerous, unhealthy, or demanding jobs.

Every employer must keep a registration record of all persons under 18 years of age employed by them, in which the date of birth of the same shall be indicated.