Colombia is a nearshore favorite for bilingual professional talent. The salary looks affordable, then prima, cesantÃas, and parafiscales add roughly 40% or more on top. Here is what a hire really costs, and the structures that keep it compliant.
Employment follows the Substantive Labor Code: written contracts (fixed-term or indefinite), social security enrollment, and a set of built-in extras (prima, cesantÃas, transport allowance for lower salaries) that first-time employers routinely underbudget. TGTC employs your hire on a compliant local contract and carries all of it.
Social security plus the parafiscales plus the statutory accruals push the employer burden to roughly 40-53% once prima and cesantÃas are included.
Prima and cesantÃas together add roughly two months of salary per year. For salaries above 13 minimum wages, an integral salary can fold these extras into one agreed number (with a 30% factor), simplifying payroll for senior hires; it must be explicit and in writing.
Employees contribute 4% pension and 4% health through withholding, plus progressive income tax on higher salaries*.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant local contract, prima, cesantÃas, social security, and payroll - handled. One invoice, flat $399/month.