First hire

First-hire cost in Colombia

Understand recurring employment cost together with registrations, payroll setup and first-hire obligations.

COCOPCanonical dataset

Employer cost calculator

What does a hire in Colombia actually cost?

Start with salary and a few basic hiring details. Ivvora converts USD to COP, applies local payroll rules, and converts the result back to USD.

Planning estimate

Answer simple business questions. Ivvora will calculate what can be safely resolved and show anything that is still missing.

Annual salary

$USD / YEAR

Salary model

Employer payroll exemption

Does the Article 114-1 exemption apply?

Workplace risk classUse salary as the planning contribution baseUse salary as the planning basis for annual benefits

Your estimate will appear here

Ivvora separates calculated costs from items that still need more information.

First-hire model

Recurring cost plus setup obligations

The calculator covers supported recurring employment costs. The structured sections below surface registrations and operational obligations separately so missing one-time fees are never invented.

Authorities

Name

Ministerio del Trabajo

Official name

Ministerio del Trabajo

Role

National labor authority

Jurisdiction

national

Website

https://www.mintrabajo.gov.co/

Source ref

CO MINTRABAJO 001

Category

employment

Name

Ministerio de Salud y Protección Social

Official name

Ministerio de Salud y Protección Social

Role

Health social protection policy

Jurisdiction

national

Website

https://www.minsalud.gov.co/

Source ref

CO MINSALUD 001

Category

Social security

Name

UGPP

Official name

Unidad de Gestión Pensional y Parafiscales

Role

Contribution compliance and enforcement

Jurisdiction

national

Website

https://www.ugpp.gov.co/

Source ref

CO UGPP 001

Category

Social security

Name

DIAN

Official name

Dirección de Impuestos y Aduanas Nacionales

Role

National tax authority

Jurisdiction

national

Website

https://www.dian.gov.co/

Source ref

CO DIAN 001

Category

tax

Name

Ministerio de Salud y Protección Social

Official name

Ministerio de Salud y Protección Social

Role

Occupational risk system policy

Jurisdiction

national

Website

https://www.minsalud.gov.co/

Source ref

CO MINSALUD 001

Category

Occupational risk

Name

DIAN

Official name

Dirección de Impuestos y Aduanas Nacionales

Role

Electronic payroll tax reporting

Jurisdiction

national

Website

https://www.dian.gov.co/

Source ref

CO DIAN 001

Category

Payroll reporting

Name

Ministerio del Trabajo

Official name

Ministerio del Trabajo

Role

Labor inspection and conciliation

Jurisdiction

national

Website

https://www.mintrabajo.gov.co/

Source ref

CO MINTRABAJO 001

Category

Labour dispute

Mandatory benefits

Transport allowance

Details

Official name

Auxilio de transporte

Mandatory

Yes

Salary eligibility threshold

2 SMMLV

Amount

249,095

Effective date

2026 01 01

Who qualifies

Public servants and private workers earning up to 2 SMMLV where public transport service is provided subject to applicable rules

Remote worker treatment

Remote worker not beneficiary unless required to attend employer premises and legal conditions apply

Included in

Prima

Yes

Cesantias

Yes

Cesantia interest

Yes

Vacation

Social security

Calculator ready

Yes

Last verified

2026 09 20

Confidence

high

dotacion

Details

Mandatory work clothing footwear

Yes

Salary threshold

2 SMMLV

Employer cost modeling approach

Excluded until unit cost is sourced

Last verified

2026 09 20

Confidence

medium

Workforce obligations

Apprentice quota

Details

Monetization option

Yes

Last verified

2026 09 20

Confidence

low

Apprentice quota

Alternative payment

Monetization available

Training obligations

SG SST and other statutory training

Registrations

Employer tax registration

RUT

Required if tax obligations apply

PILA registration

required

EPS registration

required

Pension administrator

required

ARL affiliation

required

Caja de Compensacion affiliation

Required for covered employers

SENA ICBF relationship if applicable

Contribution obligation through PILA

Cesantias fund

Required for covered employees

Employee onboarding

required

Employment contract

Required according to contract type

ID cedula foreign ID

required

EPS enrollment

required

Pension enrollment

required

ARL enrollment

Required before exposure to work risk

Caja affiliation

Required for covered workers

Cesantias fund selection

required

PILA setup

required

Medical exam

Occupational entry exam required subject to rules

SG SST induction

required

Tax data

Required for payroll tax

Family dependant data

As needed for benefits tax

Last verified

2026 09 20

Confidence

medium

Onboarding

Not available in the current dataset

Data quality

What backs this page

Sources attached to the canonical country dataset

Known gaps still tracked rather than silently inferred

Planning information, not a legal conclusion

Ivvora preserves scenario-dependence, unresolved inputs and known research gaps. Results are for planning and comparison and do not replace legal, tax, accounting or employment advice.