Hiring in Colombia through an Employer of Record
A Colombian employer pays most of the pension contribution, collected through Colpensiones and the private funds.
On top of salary, the employer pays
- 12% Pension, employer share
This is a floor, not the full cost: major employer charges in Colombia are left out, as explained below.
What the employer pays on top of salary in Colombia
- Pension, employer share: 12 percent of gross pay.
This is only the pension charge. Companies that file income tax are exempt from the employer health contribution and two payroll levies for staff paid under ten monthly minimum wages, under the tax code; above that they pay them, and this total leaves them out. Work-risk insurance and the family fund levy are also left out, so treat this total as a floor, not an estimate.
Yearly cost of one employee in Colombia, by vendor
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM $599, Deel $599, G-P $599, Multiplier $459, Oyster $699, RemoFirst $199, Remote $699, Skuad $199, Velocity Global (Pebl) $399. Not published: Rippling.
Where these numbers come from
- Pension, employer share on colpensiones.gov.co read
- Each vendor's own pricing page, linked from its name above.