The individual income tax ranges from 0% to 39%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

The employer cost is generally estimated between 30.5% - 51.85% of the employee salary.

• Severance Fund contribution- 8.33%
  • Interest on Severance - 1%
• Vacation - 4.17%
• Service Bonus - 8.33%
• Pension fund - 12%
• Labor Risk - 0.52%
• Family fund management (CCF) - 4%
• Social Security, Public Health - 8.5%
• Family Fund "ICBF” - 3%
• Training funds "SENA” - 2%

Overtime payment is mandatory for employees earning below COP 13,000,000 per month. Hours outside of standard work hours are considered overtime. For additional hours, employees are paid an additional:
- 25% of the hourly rate on a standard workweek
- 75% of the hourly rate for night shifts, Sundays, and holidays
- 150% of the hourly rate for night shifts on Sundays and holidays
Employees who are entitled to overtime pay can work a maximum of two hours of overtime per day and a maximum of 48 total hours per week.

Standard working hours are eight hours per day, 40 hours per week. The standard workweek is from Monday to Friday. As per Law 2101 of 2021, the maximum weekly working hours for employees in Colombia must be progressively reduced from 48 to 42 hours in the next few years.
This change does not affect employees’ salaries and benefits. 
The maximum weekly working hours will be reduced every year on July 15 from 2023 to 2026: 
- 2023: From 48 to 47 hours.
- 2024: From 47 to 46 hours.
- 2025: From 46 to 44 hours.
- 2026: From 44 to 42 hours. 
The reduction in the maximum weekly working hours will stop on July 15, 2026.