• Employers must register with:
  
  • DIAN (National Tax and Customs Directorate)
    
  • Social security and parafiscal authorities
    
• Payroll is processed monthly, with salaries typically paid at month-end.
• Employers are responsible for:
  
  • Withholding personal income tax
    
  • Calculating and remitting social security contributions
    
  • Paying mandatory parafiscal contributions
    
• Payroll reporting must be submitted electronically each month.
  
• Year-end tax reconciliations and employee income certificates are required.

Contracts may be indefinite, fixed-term, or project-based.

• Probation Period: Up to 2 months.
• Working Hours: Standard workweek is 42 hours, transitioning from 48 under recent labour reforms.
• Overtime: Permitted and paid at statutory premium rates.
• Termination: Requires justified cause or payment of severance.
• Severance: Mandatory for termination without cause; calculated based on salary and length of service.
  Collective bargaining agreements apply in certain industries.

Colombia has mandatory social security contributions.

• Annual Leave: 15 working days per year.
• Sick Leave: Paid, with costs shared between employer and social security after initial days.
• Maternity Leave: 18 weeks paid at 100% of salary.
• Paternity Leave: 2 weeks paid.
• Other Benefits: Transportation allowance (for lower-income employees), pensions, occupational risk insurance, and health insurance are mandatory.

• Tax Residency: Individuals present in Colombia for 183 days or more in any 12-month period are tax residents.
• Residents: Taxed on worldwide income.
• Non-Residents: Taxed only on Colombian-sourced income.
• Tax Year: January 1 – December 31.
• System: Progressive personal income tax.
• Double Taxation Treaties: Colombia has DTAs with multiple countries.