How To Hire in Colombia: Complete Guide

In recent years, remote work has gained significant popularity globally. As companies increasingly recognize the benefits of remote talent, Colombia has emerged as a promising market for companies looking to expand their virtual teams and establish remote work arrangements.

How to Hire Remote Talent in Colombia

When considering recruiting talent in Colombia, it is crucial to understand the different options available and the legal implications involved. Here are three effective ways to hire employees in Colombia:

1. Contractor

Choose contractors for flexibility and potential savings, but be aware of legal complexities in Colombia. Lupa’s tailored approach ensures compliance and seamless contractor hiring.

• Recruiting: We help you find and vet top candidates, but you handle hiring and payroll. Ideal when you want control over the process with expert support.
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• RPO: We take over your entire recruiting process for a fixed monthly fee, managing everything from sourcing to hiring. Perfect for scaling efficiently without adding internal overhead.

2. Staffing Model

Partner with Lupa to streamline recruitment and HR tasks, offering an efficient and scalable solution for global expansion. Lupa helps you hire top LatAm talent—fast and risk-free. Our Staffing service includes recruiting to find the best candidates, while we handle employment, payroll, and compliance, so you get the talent without the admin.

3. EOR (Employer of Record)

Delegate formal employment management, including payroll, tax obligations, benefits, and compliance, to Lupa.

This is especially valuable in countries like Colombia with intricate labor laws. Focus on workforce management while Lupa handles salary and benefits negotiations.
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All our services come with our 120-day guarantee: we will replace any hire that does not work out—at no cost to you.

What is the cost of hiring an employee in Colombia?

The cost of hiring an employee in Colombia depends on several factors, including salary, working hours or hourly rate, benefits, taxes, and compliance with legal requirements.

Salaries vary by role, job title, experience, and industry.

• Tech roles: $2,000–$6,000 USD/month for senior developers
• Mid-level professionals: $1,500–$3,500 USD/month
• Entry-level roles: $800–$1,500 USD/month

Income taxes in Colombia range from 0% to 39% of an employee's monthly salary, depending on their income bracket and tax residency status.

Remote Roles to Hire in Colombia

When considering remote hiring in Colombia, certain roles are particularly suitable for remote work, such as:

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Why Hire Remote Employees from Colombia?

• Colombia’s work culture combines strong technical expertise with adaptability. The country has seen a major shift toward remote work, with companies increasingly open to hiring remote talent to leverage flexibility and efficiency.

• A thriving startup ecosystem, government incentives, and tech-driven growth have created an ideal environment for remote work.Improved infrastructure and high-speed internet connectivity ensure seamless collaboration with global teams.

• Colombia ranks among the top three tech hubs in Latin America, with a growing talent pool in software development, data science, engineering, and cloud computing.Its workforce is highly skilled, bilingual, and aligned with U.S. business practices, making integration effortless.

• Labor costs in Colombia are significantly lower than in the U.S.Companies gain access to top-tier professionals at a fraction of the cost, making it a smart choice for scaling remote teams without compromising quality.

• Colombia offers skilled talent, cost efficiency, and a seamless remote work experience—a strategic advantage for companies looking to expand globally.

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Labor Costs in Colombia vs. USA

When hiring remote workers or contractors in Colombia, U.S. companies can enjoy significant savings and greater workforce flexibility, improving operations and stimulating business growth.

Here is the annual average salary for highlighted remote roles in Colombia compared to costs in the United States:

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How to Pay Talent in Colombia

Paying remote Colombian employees as a U.S. company involves navigating fluctuating exchange rates (between 3,822 and 3,975 COP in 2024), Colombia’s banking system, and adhering to the regulations of both countries:

Bank transfers

A direct and simple payment method to any personal bank account, but they may involve high fees and longer processing times.

PayPal

PayPal offers fast and secure international transactions, but it may have relatively high fees and unfavorable exchange rates.

Payoneer

This platform provides online money transfer and digital payment services, Payoneer is often used for freelancer and contractor payments.

Global payroll providers

Deel, Ontop, and Oyster offer competitive exchange rates, lower fees, faster processing times, and transparent fee structures.

Cryptocurrencies

Cryptocurrencies such as Bitcoin or Ethereum offer decentralization and potentially lower fees, but regulatory concerns may make them unsuitable for all employees.

Digital payment apps

Digital payment apps like Venmo and Cash App offer international payment services. Availability and fees for transfers to Colombia may vary.

Hiring Remote Trends in Colombia 2025

• With over 150,000 professionals and 360+ software companies, Colombia is a top hub for remote talent in Latin America and a key player in global digital transformation.

• Companies are aggressively hiring for software development,data science, finance, cloud computing, and cybersecurity—all of which are critical in today

• Businesses are using AI and data analytics to screen resumes,assess candidates, and even conduct initial interviews, making the process faster and more precise.

• Companies are embracing remote-first and hybrid models to attract top talent while improving productivity and employee satisfaction.

• Hiring strategies are focusing on building diverse, high-performing teams, recognizing that inclusivity fuels innovation and business success.

• As remote work expands, companies are investing in cybersecurity experts to protect their operations from increasing digital threats.

Colombia’s remote workforce is skilled, cost-effective, and ready to deliver. U.S. companies looking for top-tier talent are turning to Colombia—and Lupa is here to help you find the best.

Talent Hubs in Colombia

To achieve successful hiring in Colombia, it is crucial to focus your search on cities exhibiting specific innovation trends in various sectors. Consider the following:

• Bogotá: highest number of tech firms, startups, and innovation centers, specializing in software development, e-commerce, fintech, AI & ML, and more.

• Medellín: a center of innovation, with tech companies and startups excelling in smart city tech, renewable energy, robotics, VR, gaming, edtech, and more.

• Cali: a rising hub for tech companies and startups, particularly in telecommunications, logistics, transportation, agrotech, and food tech.

• Barranquilla: a thriving entrepreneurial hotspot in logistics, trade, and services, appealing to investors and new talent.

• Cartagena: emerging as a talent center. This city thrives in tourism, hospitality, and services, making it an ideal spot for startups and entrepreneurs.

Cultural Considerations of Colombian Talent

Working with a remote Colombian team requires grasping their collaborative culture, which emphasizes respect, warmth, and inclusivity. 

This environment promotes cohesion and collective success, underlining the need for clear, ongoing communication to build trust and maintain productivity.

Additionally, Colombian remote teams particularly value adaptability and a personal touch in work interactions, seeing flexibility in schedules as a way to blend work with life’s other responsibilities.

Colombian Labor Laws and Employee Benefits

Colombian labor law is robustly designed to protect workers’ rights. If considering hiring staff in Colombia, it is crucial to be familiar with and comply with the following regulations.

What are the legal requirements for hiring remote workers in Colombia?

• Salary Payment: New employees’ salaries are set through employment contracts and collective agreements, either every 15 days or monthly.
• Minimum Wage: Currently, the minimum wage in Colombia is approximately USD 333 per month. It is recommended to offer a significantly more competitive integral salary than the local average.
• Holidays: Colombia celebrates 18 national holidays per year, including Labor Day, New Year’s Day, Christmas Day and Colombia’s Independence Day.
• Overtime Pay: Employees are entitled to receive compensation for overtime hours if they work more than 48 hours in a standard six-day workweek.
• Employee Annual Leave Entitlement: After 12 months of work, employees earn up to 15 days of paid vacation or time off, usually taken consecutively.
• 13th-month Salary: All workers in Colombia are entitled to receive an additional salary equivalent to one month’s pay, in addition to their monthly salary.
• Service Bonus: In Colombia, workers are entitled to receive a bonus equal to one month’s salary per year of service, split into two payments: one half in June and the other half in December.
• Social Security Benefits: The social security system in Colombia encompasses workplace safety, sick leave, health insurance, retirement by age, pension fund, severance pay, as well as maternity leave and paternity leave rights, among other provisions.
• Fixed-term contracts: In Colombia, fixed-term contracts have a predetermined duration ranging from 1 to 3 years, with the possibility of renewal. The notice period in Colombia varies based on the type of termination, contract terms or employment agreement.
• Probationary period: These contracts often include a probation period of up to two months.

NDAs in Colombia

NDAs in Colombia are legally enforceable, backed by strong contract law and trade secret protections. But here’s the deal: an NDA only works if it’s well-written and crystal clear on what it covers. Get it right, and your sensitive info stays locked down. Get it wrong, and you’re unprotected.

What can you protect?

• Proprietary processes & formulas
• Designs & technology
• Financial & customer data
• Employee details
• Intellectual property (patents, trademarks, copyrights, etc.)

Holidays in Colombia 2025

To ensure respect for the culture and diversity of your Colombian team, it is important to consider providing days off on the following 18 national holidays:

• January 1: New Year
• January 8: Epiphany Holiday
• March 25: Saint Joseph’s Day
• March 28: Maundy Thursday
• March 29: Good Friday
• May 1: Labor Day
• May 13: Ascension Day
• June 3: Corpus Christi
• June 10: Sacred Heart
• July 1: Saints Peter and Paul’s Day
• July 20: Declaration of Independence
• August  7: Battle of Boyacá
• August  19: Assumption Day
• October 14: Day of Races
• November 4: All Saints Day
• November 11: Independence of Cartagena
• December 8: Immaculate Conception Day
• December 25: Christmas

By recognizing these important dates and allowing employees time to celebrate, you foster an inclusive workplace that respects local traditions. 

For foreign companies, ensuring proper work permits further supports a compliant and culturally aware work environment.

Characteristics of Colombian Talent

Remote Employment Growth

Post-pandemic, over 80% of Colombian companies maintain a remote work policy at least once a week, particularly in the administration and finance sectors.

Exceptional Education Levels

Education in Colombia is robust, with Latin America’s largest share of tech graduates, computing engineering as one of the most popular careers among students.

Additionally, four Colombian universities are ranked among the region’s top 100.

Top Cities Proficient in English

In Colombia, English is increasingly adopted as a second language, particularly in cities like Bogota, Medellin, and Barranquilla, where proficiency levels reach moderate standards. These cities in Colombia are crucial hubs for hiring talent.

Start Hiring Remote Colombian Talent with Lupa Today

Hiring Colombian employees can diversify your team and boost your Latin American operations. However, cultural knowledge is critical to successfully navigate the hiring process in Colombia.

Understanding Colombia’s labor laws and landscape in Colombia will help ensure a smooth hiring process.

At Lupa, we excel in aiding US companies hiring in Colombia, to swiftly recruit, interview, and onboard remote talent throughout Latin America, including Colombia, without any complications or risks.

Our team of experienced recruiters has a deep understanding of the unique requirements of remote contractors and the vast talent pool in Latin America.

Using an automated approach and our expansive talent network, we ensure that you find the best fit for your needs in tech, finance, marketing, or other sectors.

For further guidance on compliant hiring practices in Colombia, read our related articles or schedule a consultation with our experts for personalized assistance.

FAQs

What Does a Company Need to Hire Employees in Colombia?

To hire in Colombia, you need a legal entity or an Employer of Record (EOR). Employers must comply with employment laws, register for social security contributions, and contribute to family compensation funds as required by law.

What Is an Employer of Record (EOR)?

An EOR hires employees on your behalf, handling payroll taxes, onboarding, and compliance. This lets you hire in Colombia without setting up a local entity—fast, risk-free expansion.

How to Use an Employer of Record (EOR) in Colombia?

An EOR takes care of legal contracts, payroll, and benefits, so you can hire talent without dealing with time-consuming bureaucracy. Perfect for short-term needs or testing the market.

Is There a Minimum Wage Requirement for Employees in Colombia?

Yes. The minimum wage is COP 1,300,000 (~$330 USD) per month, plus a mandatory transportation allowance. This applies to full-time employees under indefinite contracts.

What to Know About Colombia’s Geography?

Colombia’s geography affects business operations. Coastal cities focus on tourism, while Bogotá and Medellín are tech and finance hubs, offering top-tier remote talent. The standard workweek varies depending on industry and location.

Can US Companies Hire Remote Employees from Colombia?

Yes, and it’s simpler than you think. You don’t need a local entity. Hire top Colombian talent as independent contractors or use an Employer of Record (EOR) to handle payroll and compliance.