Employment relationships in Colombia are primarily governed by the Código Sustantivo del Trabajo (Substantive Labour Code, CST), supported by the Political Constitution, the social security laws, and a series of reforms — most recently Law 2101 of 2021 (which phases down the working week) and Law 2466 of 2025 (a broad labour reform in force since 25 June 2025). These rules apply to Colombian and foreign employees in the private sector, whether on fixed-term or indefinite contracts.

The Labour Code sets the minimum standards every employer must meet, covering areas such as:

• Working hours, rest periods, overtime, and surcharges
• Minimum wage and payment of wages
• Mandatory benefits (prima de servicios, cesantías, and interest)
• Paid leave and public holidays
• Termination, notice, and severance (indemnización)
• Social security affiliation (health, pension, and occupational risk)

Employers may offer terms more generous than the statutory minimum, but any clause below these standards is unenforceable. Non-compliance can lead to fines, back-pay orders, and labour-court claims.

Contracts may be indefinite-term, fixed-term, project/task-based, or occasional. Following Law 2466 of 2025, the indefinite-term contract is the default form, and fixed-term or project-based contracts are permitted only under defined conditions and for a maximum of four years, after which they become indefinite. Contracts may be verbal, but a written contract is strongly recommended and is required for fixed-term arrangements.

A probation period (período de prueba) must be agreed in writing. For indefinite and long fixed-term contracts it may last up to two months; for fixed-term contracts shorter than one year it is capped at one-fifth of the agreed term (and never more than two months). During probation either party may end the contract without indemnity, but all social-security and benefit obligations still apply.

Law 2101 of 2021 progressively reduced the maximum working week from 48 hours toward 42 hours, without any cut to pay. The steps are: 47 hours (from July 2023), 46 hours (from July 2024), 44 hours (from 15 July 2025), and 42 hours (from 15 July 2026). As a result the maximum is now 42 hours per week, effective 15 July 2026 — the final step of the reduction. The daily maximum is generally up to 8 hours (hours can be spread flexibly across 5 or 6 days).

Employees are entitled to a weekly paid rest day, normally Sunday. Overtime requires authorisation and is capped at 2 hours per day and 12 hours per week. Overtime and work at night, on Sundays, or on holidays attract statutory surcharges on top of the ordinary hourly wage:

Colombia sets a single national monthly minimum wage (Salario Mínimo Mensual Legal Vigente, SMMLV), negotiated each year by government, unions, and employers and fixed by decree. For 2026 the SMMLV is COP 1,750,905 per month (roughly USD 440), and it is adjusted upward at the start of each calendar year.

In addition to the base wage, employees earning up to two minimum wages are entitled to a monthly transport allowance (auxilio de transporte), which is set separately by decree. Because both figures change annually, employers should always confirm the current SMMLV and transport allowance before running payroll.

Beyond salary, Colombian law requires employers to fund several statutory benefits known as prestaciones sociales. These apply to all ordinary employees (integral-salary earners are treated differently for some items) and are a core part of the true cost of employment.

The Labour Code and its reforms guarantee several categories of paid leave. Employers may offer more, but not less, than these statutory minimums.

Every employee must be affiliated to Colombia's integrated social-security system, with contributions shared between employer and employee and calculated on the monthly salary. Employers also pay parafiscal contributions (SENA, ICBF, and the family compensation fund). The main rates are:

Employment can end by resignation, mutual agreement, expiry of a fixed term, or dismissal. Where an employer dismisses an employee without just cause (sin justa causa), it must pay a statutory indemnity (indemnización) in addition to accrued wages, benefits, and cesantías. There is no notice requirement for an indefinite contract dismissed with indemnity, but fixed-term contracts generally require 30 days' notice to avoid automatic renewal.

For employees earning less than 10 minimum wages, the indemnity for dismissal without just cause on an indefinite contract is:

Hiring in Colombia requires careful adherence to the Substantive Labour Code and its recent reforms. Meeting the statutory rules on working hours, wages, mandatory benefits, leave, social security, and severance — while keeping up with fast-moving changes such as the 2025 labour reform and the ongoing work-week reduction — builds a strong, compliant foundation for your team. Consider working with an HR partner experienced in Colombian labour law to ensure a smooth and compliant hiring process.

Book a call with us today to learn how we can support your hiring needs in Colombia.