Employee Registration Process & Benefits 

AFC - Ahorro para el fomento de la construcción

Savings accounts for the promotion of construction (AFC) provide tax benefits to people who use them to purchase housing.

 ARL - Asegurador de Riesgos Laborales

Occupational Risk Insurer

To validate any occupational risk, we must provide the job descriptions of the candidates to the local accountants prior to the start date of the employee. All Colombia employees will be registered with AXA COLPATRIA.

 EPS – Entidad promotora de Salud

Health Promoting Entity

EPS registration needs to happen before the start date of the employee. For registration, we need a letter from the employee indicating who needs to be enrolled & which institution do they prefer.

This needs to be accompanied with the ID proof of the person who needs to be enrolled as well as anything that indicates the relation. For e.g. if it’s a child then we need the ID proof of the child along with the birth certificate which shows the relationship with the child.

 Payment Frequency

Monthly, the last working day of the month.

13th Salary – 13 Salario

Paying a 13th-month salary is mandatory in Colombia. The employer must pay the first half within the first 15 days of June and the other half within the first 20 days of December.

 Pension and Severance Statement – Pensiones y cesantias

The total amount that must be paid for layoffs is equivalent to one month's salary for each year worked and, in the case of those people who have not completed the established time, they will receive an amount proportional to the period worked.

Annual leave

All employees have 15 days of paid vacation.

All employees are entitled to paid sick leave by their employer for the first two days of leave, at a rate of two-thirds of their regular pay rate.

A medical authorisation from a Colombian social security entity must be obtained for the employee to be paid for their sick leave.

From day three onwards, all payments are assumed by the social security system. Still, the law requires that the employer pay from day three until day 180, with reimbursement from the social security system. These same rules also apply to disability leave.

Maternity Leave

Employees are entitled to 18 weeks paid maternity leave of 100.00% of the regular salary rate of pay.  The employer pays this and is then fully reimbursed by the social security.

Paternity Leave

Employees are entitled to 8 business days of paid paternity leave of 100.00% of the regular salary rate of pay.  The employer pays this and is then fully reimbursed by the social security (EPS).

Parental Leave

There is no additional Parental leave in Colombia.

Medical evaluation

The employer must conduct one onboarding assessment and one annually.

Mourning Leave

In the event of the death of an immediate family member, an employee is entitled to up to five days leave in Colombia.

Marriage license

Employees are also entitled to five days leave in the event of their marriage.

Family Leave

Each semester all the employee is entitled of one day leave in Colombia.

Other Contribution

Contributions to SENA, ICBF, Family Compensation Fund (payroll taxes) shall be calculated based on the ordinary monthly salary earned by the employee, including any paid rest, such as vacation. For employees who earn less than 10 times the minimum wage, contributions to ICBF and SENA do not apply. In case of employees earning integral salary, 70 percent of salary is the basis for this contribution. Non-salary payments are excluded from payroll taxes. Payroll taxes do not have a ceiling.

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