Cesantias (unemployment fund)

• Employees who are on an ordinary contract, are entitled to a “14^th salary” which is a direct payment to the institution made by 14^th February for employees who were hired for a full calendar year (Jan – Dec)
• Employees are paid the 1% interest on this payment through the payroll.
• The full amount to be paid to Cesantias is to be processed as an ER cost in the payroll monthly (or once annually)
• Employees can use the payment when retiring or buying a house.

Ordinary contract

• Employees who earn 1,100,000 – 15,000,000 per month
• 13^th Salary payment is applicable.
• Extra hours have to be paid.
• Cesantias has to be processed.
• 15 days holiday entitlement per year

Integral contract

• Over 15,000,000 COP per month (above 10x min wage)
• No extra hours to be paid.
• 12 salaries to be paid.
• Extra hours are not paid.
• No Cesantias to be paid.
• Holidays must be paid.

Hybrid contract

• Employees have to be checked for Health and safety regularly.
• Internet coverage is to be covered.

Contractors contract

• Paid via an invoice basis.

HR

• Medical checks are required by law BEFORE an employee joins AND BEFORE they leave – This has to be done by a private Doctor.
• New hires are registered to current institutions when they join unless a specific letter is provided to implement a change.
• Employees must be registered before they join, at least 1 day before.

Overtime

• Calculation for hourly rate is : monthly salary/30/8 = hourly rate