Colombia Compensation & Benefits
Compensation and benefits in Colombia can be confusing. Employers are required to give employees several standard benefits. Other supplementary benefits are not mandated by law but are expected by employees and can attract top candidates to your open positions. You can choose to learn the regulations related to Colombia benefit management on your own, or you can work with a Colombia benefit outsourcing company to stay compliant and save time.
Colombia Compensation Laws
Colombia compensation laws state employees should be paid monthly. However, more casual employees can get paid weekly. While the minimum wage in Colombia is currently 828,116 Pesos per month, the country changes its legal minimum wage every year. Pay close attention to any changes that could impact your employees.
The law also outlines overtime stipulations. For example, most employees in Colombia work eight hours per day and 48 hours per week. You can agree on flexible working days to adapt to your workers’ particular needs. Employees that work over the maximum workday are entitled to overtime pay of 25% extra during the day and an additional 75% at night.
Colombia recognizes 18 public holidays during which employees get time off. Employers are also required to give 15 paid days of annual leave for each year an employee works. In addition to paid time off, employees get a Semestral Bonus known as a prima de servicios. The bonus equals 15 days of salary paid to employees twice a year — once on the last day of June, then again within the first 20 days of December.
Mothers and fathers are also entitled to certain maternity leave benefits. Mothers get 14 weeks of paid maternity leave, which includes two weeks before they give birth and twelve after. Fathers receive eight working days of paid paternity leave.
Colombia Benefit Management
A successful Colombia benefit management plan requires more than guaranteed benefits. Employers and employees can also agree on additional benefits such as food, clothing, or other bonuses. Any employee that makes up to twice the minimum wage gets transportation assistance and a supply of clothing and footwear based on the type of work they do.
Although the country has a universal health insurance plan, it’s not uncommon for employers to provide additional health insurance benefits. Employees can choose between the Contributory Regime (CR) or the Subsidized Regime (SR). Any extra benefits come from the employer.
Restrictions for Benefits and Compensation
Certain restrictions on benefits and compensation are essential to keep in mind. For example, employees cannot work over the maximum amount of hours per week unless they receive overtime pay per Colombia compensation laws. If you plan to provide statutory or extra benefits as part of a Columbia benefit management plan, you need to meet the monthly minimums. As of 2015, employees must receive a minimum monthly statutory transportation allowance of 74,000 pesos.
Work With Globalization Partners
If you don’t have the time or money to navigate complicated Columbia compensation or benefit laws, outsourcing is a fantastic option. Globalization Partners is a global PEO that handles Colombia compensation outsourcing. We make sure your employees get all the necessary compensation, benefits, and more, all while taking the burden of liability off your shoulders. Contact us today to learn more.