Payroll in Colombia
Get your Colombian payroll's PILA contributions, prima de servicios, and cesantías right from the first payslip, so a phased-in 2025 labor reform never catches your calculations out of date.
Cesantías Deposit Deadline
February 14
Tax ID
NIT
Primary Registry
UGPP
Payroll in Colombia: What You Need to Know
PILA contributions run at 8.5% employer for salud, 12% employer for pensión, and ARL work-risk insurance ranging 0.522% to 6.96% by risk class, with parafiscales, Caja 4%, ICBF 3%, SENA 2%, owed unless the employer qualifies for the Ley 1607 exoneration on salaries under 10 SMMLV. Prima de servicios, 30 days' salary per year, splits into two mandatory installments by June 30 and December 20, proportional to time actually worked in each semester. Cesantías, 8.33% of monthly salary, are accrued and deposited annually by February 14 into the employee's chosen fondo de cesantías, distinct from the 12% annual interest on that balance paid directly to the employee by January 31. Unjustified dismissal under CST Article 64 triggers 20 days' salary for the first year plus 15 days per subsequent year for salaries at or above 10 SMMLV, or 30 days plus 20 days per subsequent year below that threshold, with no general notice requirement for indefinite contracts. Retención en la fuente is withheld on salaries above 95 UVT per month through 7 progressive brackets from 19% to 39%. The Ley 2466 de 2025 labor reform is phasing in an expanded night-shift premium window, a Sunday and holiday premium rising from 75% toward 100% by 2027, a 42-hour workweek target for 2026, and a 4-year cap on fixed-term contracts.
Key Requirements
PILA contributions of 8.5% employer health, 12% employer pensión, and ARL work-risk insurance ranging 0.522% to 6.96% by risk class, with parafiscales owed unless the Ley 1607 exoneration applies
Prima de servicios, 30 days' salary per year split into two mandatory installments by June 30 and December 20, proportional to time actually worked in each semester
Cesantías, 8.33% of monthly salary accrued and deposited annually by February 14 into the employee's chosen fondo de cesantías, distinct from the 12% annual interest paid directly to the employee by January 31
Unjustified dismissal under CST Article 64 triggering 20 days' salary for the first year plus 15 days per subsequent year at or above 10 SMMLV, or 30 plus 20 days below that threshold, with no general notice requirement for indefinite contracts
Retención en la fuente withheld on salaries above 95 UVT per month through 7 progressive brackets from 19% to 39%
Ley 2466 de 2025 labor reform phasing in an expanded night-shift premium window, a rising Sunday and holiday premium, a 42-hour workweek target for 2026, and a 4-year cap on fixed-term contracts
Common Challenges
Prima de servicios isn't a simple aguinaldo, and budgeting it as one underfunds mid-year
Half of the prima is due by June 30, not December, a cash-flow surprise for employers used to a single year-end 13th-month payment.
Cesantías and their interest have two different deadlines and two different payees
The 8.33% cesantías accrual goes to a third-party fund by February 14, while the 12% interest on that balance goes straight to the employee by January 31, a bifurcated obligation that's easy to mis-book as a single payment.
The 2025 labor reform is still phasing in, so a correct figure today can be wrong next year
The Sunday and holiday premium is scheduled to keep rising through July 2027, and the 42-hour workweek and fixed-term contract cap are still working through their transition periods, so payroll figures need a recheck against the current phase, not a one-time reference.
How NavviPal Helps
PILA contribution calculation and verification of Ley 1607 exoneration eligibility, so parafiscal obligations are neither over- nor under-paid
Prima de servicios processing on both the June 30 and December 20 installment deadlines
Cesantías deposit and interest payment tracking against their separate February 14 and January 31 deadlines and separate payees
Ongoing monitoring of the Ley 2466 de 2025 reform's phase-in schedule, so premium pay and contract-term calculations stay current as thresholds change
Frequently Asked Questions
Is Colombia's prima de servicios paid once a year like a typical 13th-month bonus?
No. Prima de servicios, 30 days' salary per year, splits into two mandatory installments due June 30 and December 20, proportional to time actually worked in each semester. Half is due mid-year, not at year-end, a cash-flow surprise for employers used to a single year-end 13th-month payment.
Do cesantías and their interest go to the same place in Colombia?
No. The 8.33% cesantías accrual is deposited annually by February 14 into a third-party fondo de cesantías the employee chooses. The 12% annual interest on that balance is a separate obligation paid directly to the employee by January 31, a bifurcated setup that's easy to mis-book as a single payment.
Does the Ley 1607 exoneration eliminate all parafiscal contributions in Colombia?
Only for qualifying salaries. Parafiscales, Caja 4%, ICBF 3%, SENA 2%, are owed unless the employer qualifies for the Ley 1607 exoneration, which applies to salaries under 10 SMMLV. Above that threshold, or for employers that don't qualify, the parafiscales are still owed in full.
Is Colombia's 2025 labor reform fully phased in already?
No. The Sunday and holiday premium introduced by Ley 2466 de 2025 is scheduled to keep rising through July 2027, and the 42-hour workweek target and the 4-year cap on fixed-term contracts are still working through their own transition periods. A correct payroll figure today can be outdated next year without a recheck against the current phase.
Is there a general notice requirement for terminating an indefinite contract in Colombia?
No. Unjustified dismissal under CST Article 64 triggers severance, 20 days' salary for the first year plus 15 days per subsequent year at or above 10 SMMLV, or 30 plus 20 days below that threshold, but there is no general notice requirement for indefinite contracts.
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