Colombia is quickly becoming a go-to destination for companies looking to hire in Colombia and build skilled, cost-effective remote teams in Latin America. With a strong supply of bilingual professionals, competitive salaries, and alignment with U.S. time zones, it’s no surprise that global employers are turning to hire in Colombia for their staffing needs.
In this guide, we break down everything you need to know to hire in Colombia—from salary ranges and hiring models to labor laws, compliance, and employer responsibilities. Whether you’re hiring a few remote engineers or planning to set up a local entity, this guide will help you navigate the process step by step when you hire in Colombia.
Why Hire in Colombia?
When you hire in Colombia, you gain access to a powerful combination of talent, affordability, and strategic location—making it one of the most attractive hiring markets in Latin America.
Here are some of the top reasons global employers choose to hire in Colombia:
Skilled Talent Pool
Colombia produces over 120,000 university graduates annually, with a growing number focused on STEM, finance, business, and digital careers. This makes it easier to hire in Colombia for specialized roles across multiple industries.
Cost-Effective Salaries
Monthly salaries are significantly lower than in the U.S. or Europe, allowing companies that hire in Colombia to reduce costs while maintaining quality—often saving 40-70% on employment costs.
Time Zone Alignment
Colombia operates on GMT-5, which aligns perfectly with U.S. Eastern Time and allows for real-time collaboration when you hire in Colombia.
Remote Work Readiness
With strong internet infrastructure (over 70% penetration) and widespread digital adoption, professionals you hire in Colombia are well-equipped for remote roles.
Cultural Compatibility
Colombian professionals are known for their strong work ethic, professionalism, and communication skills—closely aligned with North American business norms. Relationship building is fundamental in Colombian business culture, making it easier to integrate teams when you hire in Colombia.
Government Support
Initiatives like Free Trade Zones and digital infrastructure programs make it easier for foreign companies to hire in Colombia and grow their operations.
Whether you need engineers, marketers, analysts, or support agents, when you hire in Colombia you gain access to the right mix of talent and infrastructure to scale your team quickly.
Key Stats About Hiring in Colombia
Understanding Colombia’s labor force and digital infrastructure can help you evaluate its potential as a remote hiring destination when you hire in Colombia:
Official Language: Spanish (English proficiency is growing, especially in tech and business)
Time Zone: GMT-5 (same as U.S. Eastern Time, no Daylight Saving Time)
Currency: Colombian Peso (COP)
Population: ~51 million (2026 estimate)
Internet Penetration: Over 70%, with widespread high-speed access in major urban areas
Labor Force: ~25 million, with strengths in tech, finance, and customer service sectors
STEM Graduates: ~45,000 per year from top universities across the country
Top Talent Hubs: Bogotá, Medellín, Cali, Barranquilla
Literacy Rate: 95%, with rising investment in technical and bilingual education
Remote Work Readiness: High. Strong digital adoption and real-time collaboration with U.S. teams
National Minimum Wage: For 2026, the minimum wage is set at COP 1,423,500 per month (approximately $380 USD), with additional employer obligations such as transportation allowances and mandatory contributions
Colombia offers the digital infrastructure, bilingual talent, and affordability needed to build strong remote teams when you hire in Colombia across nearly every business function.
Top In-Demand Roles When You Hire in Colombia
Colombia has positioned itself as one of Latin America’s leading sources of professional talent. With a youthful, educated, and tech-savvy workforce, it presents an appealing environment for companies aiming to hire in Colombia and build remote teams or establish in-country operations.
Key Job Categories
Colombia’s labor market spans a wide array of skilled roles when you hire in Colombia:
1. Software Development
- Front-end Developers (React, Angular, Vue)
- Back-end Developers (Node.js, Python, Java)
- Full-stack Developers
- Mobile App Developers (iOS, Android)
- DevOps Engineers
- QA Engineers and Testers
2. Sales and Marketing
- Sales Development Representatives (SDRs)
- Account Executives
- Digital Marketing Specialists
- SEO/SEM Experts
- Social Media Managers
- Content Creators (Copywriting, Video Editing)
3. Professional Services
- Accountants and Bookkeepers
- Financial Analysts
- HR Specialists and Recruiters
- Administrative Assistants
- Project Managers
4. Customer Support & Operations
- Customer Service Representatives
- Technical Support Agents
- Virtual Assistants
- Operations Coordinators
- BPO Professionals
These roles highlight the diverse talent available when you hire in Colombia, making it an attractive destination for businesses seeking skilled professionals across various sectors.
Monthly Salary Ranges When You Hire in Colombia (USD)
Salaries when you hire in Colombia are highly competitive compared to the U.S. and Europe, offering businesses the opportunity to access top-tier talent at a fraction of the cost:
| Role | Entry Level | Mid-Level | Senior Level |
|---|---|---|---|
| Software Developer (Full-stack) | $1,800 – $2,500 | $2,600 – $3,500 | $3,600 – $5,000 |
| Front-end Developer | $1,500 – $2,200 | $2,300 – $3,200 | $3,300 – $4,500 |
| Back-end Developer | $1,600 – $2,400 | $2,500 – $3,400 | $3,500 – $4,800 |
| Sales Development Rep (SDR) | $900 – $1,300 | $1,400 – $1,800 | $1,900 – $2,400 |
| Account Executive | $1,200 – $1,600 | $1,700 – $2,200 | $2,300 – $3,000 |
| Digital Marketer | $1,000 – $1,500 | $1,600 – $2,100 | $2,200 – $2,800 |
| Financial Analyst | $1,200 – $1,600 | $1,700 – $2,300 | $2,400 – $3,000 |
| Accountant | $1,000 – $1,400 | $1,500 – $2,000 | $2,100 – $2,800 |
| Customer Support Agent | $800 – $1,000 | $1,100 – $1,400 | $1,500 – $1,900 |
| Technical Support Agent | $900 – $1,200 | $1,300 – $1,700 | $1,800 – $2,200 |
| Project Manager | $1,600 – $2,200 | $2,300 – $3,000 | $3,100 – $4,200 |
Note: These salaries reflect gross monthly compensation and may vary based on city, skill set, and language proficiency when you hire in Colombia. Hiring through an Employer of Record (EOR) or direct contract can also influence final cost.
3 Legal Ways to Hire in Colombia
When considering how to hire in Colombia, businesses have three primary pathways: engaging contractors, using Employer of Record (EOR) services, or establishing a local legal entity.
1. Hiring Contractors in Colombia
Engaging contractors when you hire in Colombia is often the simplest way to quickly bring talent on board, particularly for short-term or project-specific roles. Contractors work as independent entities, managing their own taxes and benefits.
PROS
- Flexibility: Perfect for short-term projects or roles with fluctuating workloads
- Cost-Effective: No obligation to provide benefits such as health insurance, pensions, or paid time off
- Simplicity: Minimal paperwork and no requirement for a local legal entity
CONS
- Compliance Risks: Incorrectly classifying employees as contractors can result in legal and financial penalties
- Limited Control: Less oversight over contractors compared to full-time employees
- Lack of Benefits: Might not appeal to top talent seeking more stability and benefits
Key Considerations: When you hire in Colombia with contractors, it’s essential to have a clear contract specifying the scope of work, payment terms, and confidentiality agreements. Companies must also adhere to Colombian regulations distinguishing between contractors and employees to prevent potential misclassification issues.
2. Employer of Record (EOR) Services to Hire in Colombia
An Employer of Record (EOR) serves as the legal employer for your Colombian workforce, enabling you to hire in Colombia without establishing a legal entity. This service allows you to employ full-time workers while the EOR manages payroll, taxes, benefits, and compliance on your behalf.
PROS
- Compliance: The EOR ensures compliance with local labor laws, tax obligations, and benefits regulations
- Quick Onboarding: Facilitates rapid hiring without navigating intricate legal and administrative processes
- Reduced Administrative Burden: The EOR handles all aspects of HR, payroll, and benefits administration
CONS
- Service Fees: EOR services incur a monthly fee per employee, which can increase operational expenses
- Less Direct Control: As the EOR is the legal employer, some decisions must be coordinated through them
Key Considerations: Opting for an EOR is an ideal solution if you are exploring the Colombian market or intend to hire in Colombia with a small workforce. It offers flexibility and ensures compliance without the need for local incorporation.
3. Establishing a Local Entity When You Hire in Colombia
Creating a local entity allows you to directly hire in Colombia with employees and manage your operations independently. This is an ideal option for companies planning a long-term presence in the country.
PROS
- Direct Control: Manage hiring, payroll, benefits, and employment terms directly
- Brand Visibility: Enhance your local brand presence in the Colombian market
- Strategic Growth: Perfect for businesses intending to expand operations and hire a larger workforce
CONS
- Time-Intensive: Setting up an entity can take several months and involves navigating legal, tax, and registration processes
- Higher Expenses: Initial costs for registration, legal fees, and ongoing compliance can be significant
- Complex Navigation: Requires understanding Colombia’s legal and regulatory environment, including tax filings and labor laws
Key Considerations: Establishing a local entity is suitable for businesses seeking a long-term commitment when they hire in Colombia and are looking to hire a significant number of employees.
Employment Compliance When You Hire in Colombia
Hiring employees in Colombia requires strict adherence to local labor laws. Employers must understand the types of contracts, statutory benefits, and payroll obligations to stay compliant when they hire in Colombia.
Understanding Colombian Labor Law
In Colombia, employment contracts are regulated by the Substantive Labor Code (Código Sustantivo del Trabajo, 1951). When you hire in Colombia, contracts can be either fixed-term or indefinite-term.
Types of Employment Contracts
Fixed-Term Contracts: Set for a defined period (e.g., 6 or 12 months). Can be renewed up to three times before becoming indefinite.
Indefinite-Term Contracts: No end date. Preferred for long-term roles and offers employees more stability.
Temporary or Casual Contracts: Used for seasonal work or project-based tasks. Must specify the task and expected duration.
Note: All contracts must be in writing and include role, salary, working hours, benefits, and termination clauses when you hire in Colombia.
Statutory Benefits & Leave Requirements
Employers who hire in Colombia must provide these minimum benefits to full-time employees:
Working Hours
- 48 hours per week, usually spread over 6 days
- Overtime must be paid at premium rates
Paid Leave
- Annual Leave: 15 working days per year of service (minimum of 5 consecutive days must be taken)
- Public Holidays: 18 official holidays observed
- Sick Leave: Paid sick leave available, often covered by health insurance after a certain period
- Maternity Leave: 18 weeks paid
- Paternity Leave: 2 weeks paid
Severance Pay
For indefinite contracts: 1 month’s salary for the first year, plus 20 days per additional year. Severance for termination must include all payments owed during the contract term.
Probation Period
The probation period is typically two months, during which the employer can terminate the contract without notice. After this period, proper notice is required.
Key Consideration: Failure to comply with these benefits when you hire in Colombia can result in fines or lawsuits.
Mandatory Contributions & Payroll Deductions When You Hire in Colombia
Employers who hire in Colombia must contribute to several national programs based on the employee’s gross monthly salary:
| Contribution Type | Employer Share | Employee Share |
|---|---|---|
| Health Insurance | 8.5% | 4% |
| Pension | 12% | 4% |
| Labor Risk Fund (ARL) | 0.52% – 6.96% | – |
| Parafiscal (Family, SENA, ICBF) | 9% | – |
Contributions vary depending on the employee’s salary and job risk level. Employers are responsible for calculating and paying these on time when they hire in Colombia.
How to Set Up a Business to Hire in Colombia
For companies aiming to establish a long-term presence and directly hire in Colombia with local employees, forming a legal entity is a crucial step.
Types of Business Structures
Simplified Stock Company (S.A.S.): This is the most popular and versatile structure when you hire in Colombia. An S.A.S. can be formed by a single shareholder and provides limited liability protection.
Limited Liability Company (Ltda.): This entity requires at least two shareholders and limits their liability to their capital contributions.
Corporation (S.A.): A more intricate structure requiring at least five shareholders, typically used by larger companies.
Registration Steps to Hire in Colombia
- Select a Company Name: Conduct a name search through the Chamber of Commerce
- Draft and Sign Bylaws: Outline the company’s operational structure, management, and governance policies (must be drafted and signed before a notary)
- Register with the Chamber of Commerce: Submit incorporation documents for official registration
- Obtain a Tax Identification Number (NIT): Register with the Colombian tax authority (DIAN)
- Open a Corporate Bank Account: Required to facilitate business operations and payroll
Key Considerations: The registration process can take several weeks when you hire in Colombia. Collaborating with local legal or accounting firms can help navigate complexities and ensure regulatory compliance.
Compliance and Management When You Hire in Colombia
Once your business is operational and you hire in Colombia, maintaining compliance with local regulations is essential.
Annual Compliance Obligations
Tax Filings: Companies must submit annual corporate income tax returns to DIAN. VAT returns are typically filed monthly or bimonthly.
Financial Statements: All registered companies must prepare and file annual financial statements with the Chamber of Commerce, following International Financial Reporting Standards (IFRS).
Statutory Audit: Depending on your business’s size, Colombian law may mandate an external audit (Revisor Fiscal).
Social Security and Parafiscal Contributions: Employers must regularly remit contributions on behalf of their employees, typically calculated and paid monthly.
Key Compliance Risks When You Hire in Colombia
Labor Law Compliance: The Substantive Labor Code is rigorous. Employers must offer statutory benefits including paid leave, health insurance, and social security contributions.
Tax Adherence: Non-compliance with tax regulations can lead to substantial fines and legal complications.
Employee Misclassification: Incorrectly categorizing employees as independent contractors can result in legal and financial consequences.
Workplace Safety Standards: Employers must ensure a safe working environment and adhere to labor risk regulations.
Regular Audits: Conducting regular audits ensures ongoing compliance with Colombia’s evolving workforce classification laws when you hire in Colombia.
How to Legally Terminate Employees in Colombia
Terminating employees when you hire in Colombia involves navigating a complex legal framework designed to protect workers’ rights.
Grounds for Termination
Termination must be based on just cause or mutual agreement. Just cause includes gross misconduct, repeated poor performance, or breach of contract. Employers must document these reasons thoroughly.
Notice Periods
For indefinite-term contracts, a notice period of 30 days is common. Fixed-term contracts may require notice based on the contract’s duration.
Severance Pay
Employees terminated without just cause are entitled to severance pay. For indefinite-term contracts: one month’s salary for the first year of service and 20 days for each additional year.
Mutual Termination
Mutual termination agreements require a written agreement outlining the terms, including any severance payments or benefits. While not legally required, offering severance during mutual terminations is advisable to avoid potential disputes.
Compliance with Local Laws
Employers must ensure that all statutory benefits are paid, including unused vacation days and outstanding salary, when they hire in Colombia and subsequently terminate employees.
Frequently Asked Questions About Hiring in Colombia
How much does it cost to hire in Colombia?
The cost to hire in Colombia is highly competitive compared to North America and Europe. The minimum monthly wage for 2025 is COP 1,423,500 (approximately $380 USD). Skilled professionals in technology, sales, and finance typically earn between $1,000-$5,000 USD monthly depending on experience and role. Employers must budget for mandatory costs including 20.5% in health insurance contributions (8.5%), pension (12%), labor risk fund (0.52%-6.96%), and parafiscal contributions (9%). Total employment costs are 40-70% lower than comparable North American roles.
What is the best way to hire employees in Colombia?
The best way to hire in Colombia depends on your business timeline and growth strategy. For rapid market entry without a legal entity, using an Employer of Record (EOR) is ideal as they handle all compliance, payroll, and benefits within days. For project-based or temporary work, hiring independent contractors offers flexibility. If you’re planning long-term operations with multiple hires, establishing a local entity (S.A.S. is most popular) provides full control. Most companies start with an EOR to test the Colombian market before committing to entity formation.
Can I hire remote workers in Colombia without a local entity?
Yes, you can hire in Colombia without establishing a local entity by using an Employer of Record (EOR) service or hiring independent contractors. An EOR acts as the legal employer, managing all compliance including payroll, taxes, health insurance (8.5% employer contribution), pension (12%), and parafiscal contributions (9%) while you direct daily work activities. This allows you to compliantly hire full-time employees in Colombia within 3-7 business days. Contractors manage their own taxes and benefits, though proper classification is critical to avoid misclassification penalties under the Substantive Labor Code.
What are the labor laws I need to know when hiring in Colombia?
When you hire in Colombia, key labor laws include: a 46-hour standard workweek across six days, 15 working days of paid vacation annually, 18 paid public holidays, 18 weeks of paid maternity leave, and 2 weeks of paternity leave. Employers must provide severance pay for termination without just cause (one month’s salary for the first year plus 20 days per additional year). Mandatory employer contributions total approximately 20.5% and include health insurance (8.5%), pension (12%), labor risk fund (0.52-6.96%), and parafiscal programs (9%). All contracts must be in writing per the Substantive Labor Code.
How long does it take to hire employees in Colombia?
The timeline to hire in Colombia varies by method. Using an Employer of Record (EOR), you can hire employees in as little as 3-7 business days once candidates are selected. Hiring contractors is even faster, typically 1-3 days after contract agreement. However, if you’re establishing a local entity first, the S.A.S. incorporation process takes approximately 6-10 weeks, including name registration through the Chamber of Commerce, drafting bylaws, obtaining a Tax Identification Number (NIT) from DIAN, and opening a corporate bank account. After entity setup, individual hiring proceeds within 1-2 weeks.
What is the minimum wage in Colombia?
The minimum wage in Colombia for 2025 is COP 1,423,500 per month (approximately $380 USD), adjusted annually by the government. Employees earning up to twice the minimum wage are also entitled to a transportation allowance. However, skilled professionals in high-demand sectors like software development, engineering, digital marketing, sales, and customer support typically earn significantly above minimum wage, ranging from $1,000-$5,000 USD monthly depending on experience, specialization, and language proficiency (bilingual professionals command premium salaries).
Do I need to pay taxes when I hire in Colombia?
Yes, when you hire in Colombia, you must comply with several tax obligations. Employers contribute 8.5% of employee salaries to health insurance and 12% to pension funds, while withholding 4% from employee wages for both health and pension. You must also contribute to labor risk funds (0.52-6.96%) and parafiscal programs totaling 9% (SENA, ICBF, family welfare). Income tax must be withheld based on progressive rates and remitted to DIAN. If you establish a local entity, you’ll be subject to corporate income tax and VAT. An EOR handles all these obligations on your behalf.
What are the benefits of hiring in Colombia vs other Latin American countries?
Hiring in Colombia offers several unique advantages over other Latin American countries. Colombia produces 120,000 university graduates annually with 45,000 in STEM fields, providing deep technical talent. The GMT-5 time zone provides perfect alignment with U.S. Eastern time for real-time collaboration. Bilingual professionals are abundant, especially in Bogotá, Medellín, and Barranquilla, with strong English proficiency in business and tech sectors. Government support through Free Trade Zones offers tax incentives. Colombia’s cost-effective salaries (40-70% lower than North America) combined with high literacy (95%), robust digital infrastructure (70% internet penetration), and cultural alignment with North American business practices make it a premier nearshore destination.
Conclusion: Ready to Hire in Colombia?
Colombia has become one of the most attractive countries in Latin America for global companies looking to hire in Colombia and expand their teams. With a highly skilled workforce of 25 million professionals, competitive salaries, and strong alignment with U.S. time zones, it offers a unique advantage for building remote or in-country operations.
For companies seeking top talent in software development, sales, marketing, finance, or customer support, when you hire in Colombia you gain access to qualified professionals who are ready to work in global environments. The country’s growing tech ecosystem, high English proficiency in business sectors, and government support for digital infrastructure continue to improve its appeal to foreign employers.
However, hiring in Colombia also requires careful navigation of labor laws, tax obligations, employment contracts, and payroll systems under the Substantive Labor Code. Employers must be aware of statutory benefits, social security contributions totaling approximately 20.5%, and the importance of compliance.
Businesses have multiple options to begin hiring in Colombia—whether through independent contractors, Employer of Record (EOR) services, or by setting up a local entity (S.A.S. being most popular). Each path offers different benefits depending on your hiring goals, risk tolerance, and long-term plans.
Start your journey to hire in Colombia today and unlock access to one of Latin America’s most dynamic and cost-effective talent markets.