Employment Laws in Colombia: A Comprehensive Guide for 2026

What are the employment contracts in Colombia?

Employment contracts in Colombia define the terms and conditions of the employment relationship between an employer and an employee. Under the Colombian Substantive Labor Code, a valid employment contract includes the employee's services, agreed remuneration, and the employee's subordination to the employer.

What are the types of employment contracts in Colombia?

There are two primary types of employment contracts in Colombia: definite contracts and indefinite contracts.

Definite contract

A definite contract is entered into for a specified period agreed upon by the employer and the employee. It is commonly used for temporary, seasonal, or project-based work and ends on the agreed expiration date unless it is renewed in accordance with Colombian labor regulations.

Indefinite contract

An indefinite contract has no predetermined end date and continues until it is terminated by either the employer or the employee in accordance with Colombian labor laws. It is the most common contract type for ongoing employment relationships.

How are working hours and overtime regulated in Colombia?

The employment laws in Colombia lay down specific regulations related to the standard working hours and permissible overtime. Those include

Regular working hours

Under Colombia’s Law 2101 of 2021, the maximum ordinary workweek was reduced to 47 hours from July 15, 2023, through July 14, 2024, for employers following the law’s gradual implementation schedule.

Under Colombia’s Law 2101 of 2021, the maximum ordinary workweek is being reduced according to the following statutory schedule:

• 46 hours per week from July 15, 2024, through July 14, 2025;
• 44 hours per week from July 15, 2025, through July 14, 2026; and
• 42 hours per week from July 15, 2026, onward.

Employers may implement the 42-hour workweek before the statutory deadline. The reduction must not decrease employees’ salaries, benefits, or the value of an ordinary working hour.

Overtime regulations and compensation

In Colombia, overtime refers to work performed beyond an employee's agreed working hours or the statutory maximum working day. Daytime work is performed between 6:00 a.m. and 7:00 p.m., while nighttime work is performed between 7:00 p.m. and 6:00 a.m.

Daytime overtime is paid at 125% of the ordinary hourly wage, ordinary night work at 135%, and nighttime overtime at 175%. The 35% night-work premium applies only to ordinary nighttime hours, while the 75% premium applies to overtime worked at night.

Overtime is generally limited to two hours per day and 12 hours per week, subject to legal exceptions. Work performed on public holidays or mandatory rest days is also entitled to an additional statutory premium, with employers required to maintain records of all overtime hours worked.

What are the minimum wage and compensation requirements in Colombia?

Minimum wage rate

Colombia’s monthly legal minimum wage for 2026 is COP 1,750,905, excluding any applicable transportation allowance. This amount was established on a transitory basis under Decree 159 of February 19, 2026.

Factors affecting minimum wage determination

Colombia’s minimum wage is determined through the Permanent Commission for the Coordination of Wage and Labor Policies. The Commission must consider the need to provide workers and their families with a dignified quality of life.

When the commission does not reach a consensus, the Colombian government determines the minimum wage using statutory economic factors, including:

• The inflation target for the following year
• The consumer price index
• Productivity
• The contribution of wages to national income
• Growth in gross domestic product

These factors are prescribed by Article 8 of Law 278 of 1996.

What are the mandatory employee benefits in Colombia?

Employees in Colombia are entitled to statutory benefits and social security coverage under the country's labor laws. These include health insurance, the statutory service bonus (prima de servicios), pensions, labor-risk insurance, and mandatory employer and employee social security contributions.

Statutory benefits

Health insurance

Employees residing in Colombia must generally be affiliated with the Sistema General de Seguridad Social en Salud (SGSSS), Colombia’s General System of Social Security in Health. Employers are responsible for registering eligible employees and making the required health contributions.

13th-month pay

Private-sector employees governed by the Colombian Substantive Labor Code are entitled to a statutory service bonus known as the prima de servicios.

The bonus is equivalent to 30 days of salary per year and is paid in two installments:

• The first half must be paid no later than June 30.
• The second half must be paid no later than December 20.

The amount is calculated proportionally when an employee works for only part of the year.

Social security contributions and requirements

Dependent employees in Colombia must generally be enrolled in the health, pension, and labor-risk systems.

Certain foreign employees may be exempt from mandatory pension affiliation when they remain covered by a pension system in their country of origin or another country. However, this exception does not generally remove health or labor-risk registration requirements.

Monthly contributions are calculated using the employee’s Ingreso Base de Cotización, or contribution base income, rather than simply the employee’s stated salary.

The standard health and pension contribution rates are:

Labor-risk insurance contributions are paid entirely by the employer and are additional to the rates shown above. The applicable rate varies according to the employee’s occupational risk classification.

Employees who meet the applicable income thresholds may also be required to make additional contributions to the Pension Solidarity Fund. Eligible employers may be exempt from the 8.5% employer health contribution for qualifying employees under Colombian tax law.

What are the leave entitlements in Colombia?

Employees in Colombia are entitled to a range of statutory leave benefits under labor law. These include annual leave, sick leave, maternity and paternity leave, and compassionate leave, each with specific eligibility and payment requirements.

What are the public holidays in Colombia?

Colombia observes several national public holidays each year, including religious and civic holidays. Employees are generally entitled to paid time off on these holidays in accordance with Colombian labor laws.

How does employment termination work in Colombia?

Termination of employment is a complex process that needs to be handled on a case-by-case basis. Mentioned below are some of the possible scenarios of termination in Colombia.

Probation

In Colombia, a probationary period must be agreed to in writing. If it is not documented in writing, the employment relationship is governed by the ordinary rules of the employment contract. The maximum probationary period is two months.

For fixed-term contracts lasting less than one year, the probationary period cannot exceed one-fifth of the contract’s initially agreed duration and must not exceed two months. For fixed-term contracts lasting one year or more, the general two-month maximum applies.

When the same employer and employee enter into successive employment contracts, a probationary period is generally valid only for the first contract.

During a valid probationary period, either party may terminate the employment relationship unilaterally without prior notice. Employees remain entitled to all salary, statutory benefits, and other amounts accrued up to the termination date.

Grounds for termination

Termination during probation period

Terminating an employee during the probationary period is a common practice for employers to assess an individual's suitability for the role. Here are some of the common grounds for termination during the probationary period:

• Poor performance
• Workplace misconduct
• Failure to meet role requirements
• Persistent absence from work

Termination due to poor performance

Employers are required to provide written documentation of concerns to the employee. Some of the common grounds for termination due to poor performance include the following:

• Unsatisfactory performance
• Absence from work due to illness

No prior notice is mandated in instances of misconduct or termination without cause, allowing employers to terminate contracts immediately.

Termination with cause

Common grounds for termination with cause are the following:

• Indefinite illness
• Breach of employment contract
• Working under the influence
• Gross misconduct

Termination due to business redundancy

Common grounds for termination due to business redundancy include:

• Restructuring
• Shutting down operations in the regions
• Economic reasons

Notice period & severance pay

Colombia generally does not require employers to provide advance notice when terminating an indefinite-term employment contract without just cause. Instead, employers must pay the applicable statutory termination indemnity.

However, 15 days' advance notice is required for performance-related terminations, and 30 days' written notice is required if either party does not intend to renew a fixed-term contract.

For indefinite-term contracts terminated without just cause, employees earning less than 10 monthly minimum wages receive 30 days' salary for the first year and 20 days for each additional year, while those earning 10 or more monthly minimum wages receive 20 days' salary for the first year and 15 days for each additional year, calculated proportionally for partial years.

For fixed-term or project-based contracts terminated early without just cause, the indemnity generally equals the salary payable for the remaining contract or project duration, subject to the applicable legal minimum.

Employers may face compliance challenges when managing terminations in Colombia, particularly where documentation, notice obligations, and statutory indemnity requirements apply.

Skuad’s Shield helps employers identify and address these obligations throughout the employment lifecycle.

Here is what Skuad helps with:

• Employment contract generation aligned with local labor requirements
• Administration of statutory benefits and paid leave through the employment lifecycle
• Payroll processing in 70+ currencies with automated tax withholding and year-end reconciliation
• Termination and offboarding workflows, including notice and severance calculations

What are the workplace discrimination rules in Colombia?

Colombia's Constitution guarantees equality before the law and prohibits discrimination. Employers are expected to provide equal employment opportunities and maintain a workplace free from unlawful discrimination and harassment.

Law 1010 of 2006 establishes measures to prevent, correct, and sanction workplace harassment. The law recognizes employment discrimination as a form of workplace harassment and prohibits unjustified differential treatment based on race, gender, age, family or national origin, religious belief, political preference, social status, and other protected characteristics that are unrelated to legitimate employment requirements.

What are the health and safety regulations in Colombia?

The employment laws in Colombia direct companies to safeguard employee health and safety. In this regard, Law 1562 of 2012, also known as the Prevention of Industrial Hazards and Health & Safety at Work, aims to guarantee the well-being and safety of employees, shielding them from the repercussions of occupational diseases or accidents in the workplace.

Stay compliant when hiring in Colombia with Skuad

By now, you have understood the key aspects of employment laws in Colombia, including employment contracts, working hours, employee benefits, leave entitlements, termination requirements, and workplace compliance obligations. Knowing these requirements helps employers manage their workforce in line with local labor laws.

Skuad helps businesses hire, onboard, pay, and manage employees in Colombia while supporting compliance with local employment requirements. It also supports compliant contracts, payroll administration, statutory benefits, and tax contributions across the employment lifecycle.

Whether you are hiring your first employee or expanding your team, Skuad helps you manage your workforce in Colombia through a single global platform. This gives your HR teams greater visibility into employment and payroll operations across countries.

Book a demo to see how Skuad supports compliant hiring in Colombia.

FAQs

1. What are employment laws in Colombia?

Employment laws in Colombia govern the relationship between employers and employees under the Colombian Substantive Labor Code. They cover employment contracts, wages, working hours, employee benefits, leave, termination, workplace safety, and anti-discrimination requirements. The Ministry of Labor oversees compliance with these laws.

2. What types of employment contracts are allowed under employment laws in Colombia?

Colombia primarily recognizes indefinite-term and fixed-term employment contracts. Indefinite contracts continue until lawfully terminated, while fixed-term contracts end on the agreed date unless renewed. Employers must comply with statutory rules when drafting, renewing, or terminating these contracts.

3. What are the overtime rules under employment laws in Colombia?

Colombia’s labor laws regulate overtime work and require employers to provide additional compensation for hours worked beyond the ordinary schedule. Overtime is generally limited to two hours per day and 12 hours per week, with different payment rates applying for daytime and nighttime overtime.

4. What mandatory employee benefits are required under employment laws in Colombia?

Employees are generally entitled to health, pension, and labor-risk coverage; paid annual leave; maternity and paternity leave; and the statutory prima de servicios (service bonus). The service bonus (prima de servicios) equals 30 days' salary per year and is typically paid in two installments during June and December.

5. How do employment laws in Colombia regulate employee termination?

Termination rules depend on the employment contract and the reason for dismissal. Employers may be required to pay statutory termination indemnity when dismissing employees without just cause. Performance-related terminations and fixed-term contract non-renewals are subject to specific notice requirements.

6. What is the minimum wage under employment laws in Colombia?

Colombia’s monthly legal minimum wage for 2026 is COP 1,750,905, excluding any applicable transportation allowance. The amount was established on a transitory basis under Decree 159 of February 19, 2026. Employers must also consider statutory benefits, payroll contributions, and applicable wage-related allowances.