The Hidden Exit Bill: What Does It Cost to Terminate a Colombia EOR Employee After 30, 90, 180 or 365 Days?

The company has paid the employee’s salary, funded employer contributions and covered the EOR’s monthly service fee. But ending the employment relationship can create another financial obligation.

For an indefinite-term employee earning COP 5 million, employer-initiated termination without just cause can trigger COP 5 million in statutory indemnification during the first year of employment. After 90 days, the employee may also have generated approximately COP 3.16 million in statutory benefit entitlements.

That produces approximately COP 8.16 million in combined accrued benefits and termination indemnification, before outstanding salary, EOR contractual charges or adjustments for benefits already paid.

It does not mean COP 8.16 million necessarily becomes payable on the exit date. Some benefits may already have been settled through payroll or deposited into the relevant fund.

The distinction matters. A termination budget needs to identify what the employee has earned, what the employer must pay because of the termination, what has already been funded and what the EOR can charge under its own commercial agreement.

This article models those components at four employment milestones: 30, 90, 180 and 365 days.

What Is Actually Included in a Colombia EOR Exit Bill?

An EOR arrangement involves two contractual relationships. The Colombian employee has an employment agreement with the local legal employer, while the international hiring company has a commercial agreement with the EOR provider.

Ending the employment relationship can therefore create two different groups of costs.

Cost category	Who receives the payment?	What determines the amount?
Outstanding salary and compensation	Employee	Earned wages, commissions, overtime and unpaid compensation
Prima de servicios	Employee	Eligible service accrued since the last settlement
Cesantías	Employee or severance fund, depending on timing	Statutory accrual and previous deposits
Interest on cesantías	Employee	Applicable accrual period and payment arrangement
Unused statutory vacation	Employee	Vacation earned but not taken
Termination indemnification	Employee	Contract type, salary, tenure and legal reason for termination
EOR service charges	EOR provider	Signed service agreement, billing period and settlement provisions
EOR deposits or reserves	Held by EOR, potentially refunded to client	Deposit requirements, deductions, reconciliation and refund terms

The first five categories represent employment obligations that can arise regardless of whether the employee resigns or is dismissed.

Termination indemnification is different. It depends on the circumstances and the applicable legal framework.

EOR charges introduce another layer. They are commercial obligations between the hiring company and its EOR provider, not automatically employee entitlements under Colombian labor law.

Colombia EOR Exit Cost Calculator: Four Employment Milestones

To compare the four separation dates, Ivvora uses the same employee and salary throughout.

The employee profile

Model input	Assumption
Country	Colombia
Legal framework	2026
Gross monthly salary	COP 5,000,000
Contract for main model	Indefinite-term
Salary structure	Ordinary, non-integral fixed salary
Salary changes	None
Variable compensation	None
Transport allowance	Not applicable
Vacation taken	None
Accrual checkpoints	30, 90, 180 and 365 calendar days
EOR fees	Excluded until separately modeled

Colombia’s 2026 monthly minimum wage is COP 1,750,905 under Decree 159 of 2026. Therefore, the employee’s COP 5 million salary is below the threshold of ten monthly minimum wages used in the lower-salary indemnification formula.

The employee also earns more than twice the minimum wage, so the model excludes the statutory transport allowance.

For statutory-benefit calculations, the model uses the conventional 30-day month and 360-day accounting year. The 365-day checkpoint represents one full calendar year, corresponding to 360 conventional payroll days.

The results are illustrative gross entitlements accrued over the modeled service period. They are not a final payroll quotation. Actual settlements must account for precise dates, previous benefit payments, deposits, salary components and leave records.

How statutory benefits accumulate

Colombia’s Ministry of Justice provides formulas for calculating core employment benefits.

For a fixed salary employee:

• Prima de servicios = eligible salary base × qualifying days / 360
• Cesantías = eligible salary base × qualifying days / 360
• Interest on cesantías = accrued cesantías × applicable days × 12% / 360
• Vacation compensation = applicable salary base × unused qualifying days / 720

For the simplified comparison, each benefit is calculated as if the employee had accrued it continuously from the beginning of the modeled period.

In real payroll, the calculation must be divided into the correct payment periods. Prima is normally paid in two installments during the year. Cesantías are generally deposited into a severance fund annually if employment continues, while interest has its own payment schedule.

What has the employee earned at each exit date?

Statutory entitlement	30 days	90 days	180 days	365 days
Prima	416,667	1,250,000	2,500,000	5,000,000
Cesantías	416,667	1,250,000	2,500,000	5,000,000
Interest on cesantías	4,167	37,500	150,000	600,000
Unused vacation	208,333	625,000	1,250,000	2,500,000
Total accrued entitlements	1,045,833	3,162,500	6,400,000	13,100,000

All amounts are COP, rounded to the nearest peso. Totals are calculated before rounding individual components.

This first table contains an important result.

After 30 days, the employee has already generated approximately COP 1.05 million in statutory benefits, even though the employment relationship is still relatively new.

At six months, that increases to COP 6.4 million. At one full year, the cumulative entitlement reaches COP 13.1 million.

But these figures should not be mistaken for incremental termination costs. They represent entitlements earned through employment, some of which may already have been paid or funded.

For example, if the employee completes an entire calendar year and both prima installments have already been paid, the COP 5 million in annual prima should not appear again as unpaid final settlement.

That is why an accurate EOR exit calculator must track accrued, paid, funded and outstanding amounts separately.

Resignation, Dismissal and Just Cause: Why the Exit Reason Changes the Bill

The employee’s tenure alone does not establish whether termination indemnification is owed.

Colombia’s Labor Code distinguishes voluntary resignation, employer termination without just cause, and termination based on legally established grounds.

Scenario 1: The employee resigns voluntarily

In an ordinary voluntary resignation, the employee remains entitled to outstanding salary, accrued statutory benefits and unused vacation.

However, the resignation itself does not ordinarily trigger the employer’s indemnification obligation under Article 64.

Under the indefinite-term contract provisions introduced by Law 2466 of 2025, an employee may provide 30 calendar days’ advance notice to facilitate replacement. The law prohibits a contractual penalty against the employee for omitting that notice.

This is not equivalent to a universal requirement that the employer pay an additional 30 days of salary when accepting a resignation.

A resignation caused by serious employer misconduct is a different legal scenario. If the applicable grounds are established, employer indemnification may arise.

Scenario 2: The employer terminates without just cause

Article 64 of Colombia’s Labor Code provides different indemnification formulas according to salary and service duration.

For an indefinite-term employee earning less than ten minimum monthly wages:

• Up to one year of service: 30 days of salary.
• More than one year: 30 days for the first year, plus 20 days for each subsequent year, proportionally for fractions.

For employees earning ten minimum monthly wages or more, the formula generally uses 20 days for the first year and an additional 15 days for each subsequent year or proportion.

Because the modeled employee earns COP 5 million per month, the applicable first-year indemnification is:

COP 5,000,000 / 30 × 30 = COP 5,000,000

That amount does not increase month by month during the employee’s first year under this particular formula.

A qualifying employer termination without just cause after 90 days can therefore generate the same statutory indemnification as one after 180 days, even though the accrued benefit balances differ.

Scenario 3: The employer terminates for legally supported just cause

A termination based on a valid legal ground may avoid the Article 64 indemnification payment.

But the grounds and applicable process must be assessed and supported. An employee’s poor performance, the disappearance of a project or a client’s decision to remove a worker does not automatically establish just cause.

The EOR, acting as the legal employer, must review the circumstances, documentation and relevant procedures.

Even when a lawful just-cause termination occurs, outstanding compensation and accrued employee entitlements remain payable.

The four-date comparison

Using the main COP 5 million salary model:

Exit date	Accrued statutory entitlements	Without-just-cause indemnification	Combined modeled exposure
30 days	1,045,833	5,000,000*	6,045,833*
90 days	3,162,500	5,000,000	8,162,500
180 days	6,400,000	5,000,000	11,400,000
365 days	13,100,000	5,000,000	18,100,000

Amounts in COP. Excludes outstanding salary, employer contributions not already funded, EOR commercial charges, earlier settlements and other case-specific liabilities.

The 30-day indemnification scenario assumes no valid probationary termination exemption or other legal basis that removes the Article 64 payment. A valid probationary termination can produce a different outcome.

The model illustrates two separate movements.

The employee’s accumulated entitlements rise with service duration, while the statutory indemnification for an ordinary indefinite-term employee in this salary bracket remains at 30 days’ salary through the first year.

This makes the legal termination reason a major determinant of the final amount, particularly during the first few months.

Does Terminating a Colombian Employee During Probation Eliminate Severance?

Not necessarily, and 30 days is not Colombia’s universal probation period.

Under Articles 77 and 78 of the Labor Code, a probationary period generally must be agreed in writing and cannot exceed two months.

For fixed-term contracts shorter than one year, probation also cannot exceed one-fifth of the initially agreed contract duration, subject to the two-month maximum.

Where a valid probationary period applies, termination during that period may occur without the ordinary Article 64 indemnification. The employee still retains rights to salary and benefits earned.

For the modeled employee after 30 days:

Cost component	Valid probationary termination	Termination without just cause outside valid probation
Accrued statutory entitlements	1,045,833	1,045,833
Article 64 indemnification	0	5,000,000
Combined modeled exposure	1,045,833	6,045,833

This COP 5 million difference demonstrates why the probation clause needs to be verified before an employer relies on it.

However, probation does not remove protections against unlawful discrimination or other prohibited terminations. Special employment protections may still apply, and an employer should not presume that a probation clause makes every exit lawful.

Fixed-Term Contracts Can Produce a Much Larger Early Exit Liability

The same worker, salary and separation date can produce a very different result under a fixed-term contract.

Under Article 64, employer termination of a fixed-term employment contract without just cause generally requires indemnification corresponding to the salary for the remaining agreed contract term.

That makes the length of the unexpired contract particularly important.

Consider the COP 5 million employee hired under a valid 12-month fixed-term agreement.

Assume the employee is terminated without just cause after the equivalent of one, three or six contractual months, with no valid probationary exemption.

Employment milestone	Illustrative contractual term remaining	Salary-equivalent indemnification	Total including modeled accrued entitlements
30 days	11 months	55,000,000	56,045,833
90 days	9 months	45,000,000	48,162,500
180 days	6 months	30,000,000	36,400,000
365 days	Term completed	0*	13,100,000

Amounts in COP. This example uses whole contractual months remaining for comparability. The exact indemnification must be determined from the actual contract dates and salary terms.

The zero-indemnification result at completion assumes the agreement validly expires and any required nonrenewal notice was provided. It does not apply to an early dismissal or an automatically renewed contract.

The contrast with an indefinite-term contract is substantial.

At the three-month checkpoint, the main indefinite-term example produces COP 5 million in statutory indemnification. The fixed-term example produces COP 45 million because nine months remain on the contract.

The financial exposure of early fixed-term termination can therefore decrease as the contract approaches its agreed expiry, while accrued employee benefits continue to increase.

There are also important legal qualifications.

Law 2466 of 2025 changed Colombia’s fixed-term framework, including written-contract requirements, restrictions on contract duration and rules for renewal.

Valid fixed-term contracts generally face a maximum cumulative term of four years under the revised framework, subject to the applicable transitional treatment.

Automatic renewal can occur when the required 30-day advance notice of nonrenewal is not provided. A company expecting a contract to end naturally should therefore confirm both the expiry date and notice deadline with its EOR.

The distinction between a fixed-term contract and a contract for a specific work or project also matters. Under Article 64, compensation for early termination of a work-or-project contract follows its own remaining-work analysis, with a statutory minimum of 15 days for that category.

Employers should not automatically apply that 15-day minimum to the separate fixed-term calculation or assume that the end of a client project legally ends every type of employment contract.

The Other Exit Bill: What Do EOR Providers Actually Charge?

Statutory employment calculations are only part of the hiring company’s potential financial exposure.

An EOR may charge for services during offboarding, continue billing through a final settlement period, hold a refundable deposit or require the client to reimburse employment liabilities.

These terms need to be established from actual agreements rather than estimated from a provider’s advertised monthly price.

Published documentation from Deel, Remote and Multiplier provides several concrete examples.

Deel: Deposits, final invoices and refund timing

Deel’s published EOR deposit guidance states that its standard deposit is between one and 1.5 times the monthly charges, including salary, employer costs, fixed allowances and management fees.

Deel also states that the final EOR invoice can include final salary, unused vacation, severance and outstanding Deel fees.

Deposits can be applied against qualifying final invoices under its documented conditions, with the remaining balance refunded after settlement.

Its refund guidance notes that the termination process can take up to 60 days depending on the circumstances and jurisdiction. A refund is processed after the termination or resignation has been finalized and the relevant invoices have been paid and settled.

This creates a cash-flow distinction.

A deposit paid during onboarding may remain temporarily unavailable even after the employee has stopped working. But the full deposit should not be treated as a permanent termination expense if a refundable balance remains.

Sources: Deel EOR deposit calculation rules and Deel deposit refund guidance.

Remote: Termination control and severance reserves

Remote’s Colombia-specific local terms identify Remote Technology Colombia S.A.S. as the relevant local entity and state that Remote Colombia remains responsible for employment-related obligations and termination communications.

Its public operational guidance instructs customers to involve Remote before communicating a termination to an employee.

Remote also documents reserve payments intended to protect against potential severance or unexpected termination costs. Any remaining balance can be credited or refunded after employment ends and related costs are settled, subject to the applicable conditions.

A reserve is therefore a funding arrangement, not necessarily an additional statutory severance payment.

The actual reserve requirement and settlement must be confirmed for the relevant employment and commercial agreement.

Sources: Remote Colombia local terms, Remote reserve payments and Remote EOR termination guidance.

Multiplier: Full-month fees, settlement-month billing and contractual exposure

Multiplier’s published EOR Terms, effective June 1, 2026, contain particularly relevant commercial provisions.

The terms state that its EOR service fee is chargeable for the entire month regardless of the worker’s joining or termination date. They also provide for a service fee in the month when the employee’s full and final settlement is processed.

This matters when employment ends in one billing month and the final settlement is processed in another.

If the contracted monthly service fee is F, those two separate billing months may generate service charges totaling 2F under the applicable terms. The amount depends on the signed order form and settlement timing.

Multiplier’s terms also require a 30-day lead time to process an employee termination request, separate from any employee notice required under local employment law.

Its EOR deposit is generally refundable within 60 days of the worker’s last working day, subject to outstanding payments and specified exceptions. The provider also describes a separate termination accrual that may be collected and later reconciled.

A further clause provides for a penalty equal to 15% of the full and final invoice when the client breaches the specified termination-process obligation. That is a conditional contractual penalty, not a universal Colombian termination fee.

Finally, certain order-form arrangements make fees payable for the full contracted service term, even when services end early.

Source: Multiplier EOR Terms.

What the published terms establish

EOR provider	Documented contractual exposure	What remains contract-specific
Deel	Standard deposit of 1–1.5 monthly charges, final invoice reconciliation and conditional refunds	Actual deposit, outstanding fees, notice terms and final refund
Remote	Employment termination control and potentially refundable severance reserves	Reserve amount, service charges and applicable offboarding conditions
Multiplier	Full-month fees, final-settlement-month fees, 30-day processing lead time, deposit and termination accrual provisions	Order-form price, remaining committed term, applicable expenses and conditional penalties

These are published general provider terms and policies, not quotes for a particular Colombian employee. Signed order forms, local employment agreements and negotiated amendments may alter the actual commercial result.

No undocumented Colombia-specific termination fee has been added to the model.

How to Calculate the Real Final Cash Requirement

The employee’s accrued benefits, statutory indemnification and the EOR’s commercial invoices should not be combined without adjusting for amounts already settled.

Consider an employee earning COP 5 million who leaves after one full calendar year following an employer termination without just cause.

Using the main model, the employee generated:

• COP 5,000,000 in prima during the year
• COP 5,000,000 in cesantías
• COP 600,000 in interest on cesantías
• COP 2,500,000 in unused vacation
• COP 5,000,000 in termination indemnification

The combined annual entitlements and indemnification amount to COP 18.1 million.

Now assume both annual prima installments, totaling COP 5 million, have already been paid, while the current year’s cesantías have not yet been deposited and the employee has taken no vacation.

Reconciliation item	COP
Annual accrued benefits plus termination indemnification	18,100,000
Less prima already paid	-5,000,000
Remaining modeled employee liability	13,100,000

This COP 13.1 million represents the remaining components under the stated assumptions, before adding unpaid salary, other compensation, deductions or contract-specific items.

Suppose the employee has also earned ten days of salary since the last payroll cutoff.

The additional gross salary is approximately:

COP 5,000,000 × 10 / 30 = COP 1,666,667

The remaining modeled employee liability would then increase to approximately COP 14.77 million.

That amount is still not the EOR’s final invoice. It excludes commercial fees, any applicable employment contributions that remain unfunded, settlement adjustments and the reconciliation of deposits or reserves.

A useful exit model therefore needs two calculations.

Employee liability calculation

Outstanding salary + unpaid statutory benefits + unused vacation + applicable indemnification + other legally owed compensation, minus payments already made.

Client-to-EOR cash calculation

Unfunded employee liabilities + contractual EOR fees + other agreed charges, minus eligible deposits, reserves or credits applied against the final bill.

A refundable deposit awaiting release should be tracked separately from permanent expenditure. A deposit already used to pay part of the final invoice should not be subtracted again.

Why Termination Timing Can Matter as Much as Employee Tenure

Two employees with identical salaries and service duration may have different final settlements because their termination dates fall on different sides of statutory payroll deadlines.

Colombia’s benefit calendar is especially important.

Prima de servicios is ordinarily paid no later than June 30 for the first half of the year and December 20 for the second half.

Cesantías accumulated during an ongoing employment relationship are generally deposited into the appropriate fund before February 14 of the following year.

Interest on cesantías is generally payable to the employee by January 31, subject to applicable alternatives such as an authorized monthly arrangement.

These timing differences affect whether a balance is already settled, remains unpaid or must be reconciled at termination.

A worker leaving immediately before a scheduled prima payment may have a substantial prima amount outstanding.

A worker leaving after that payment may have earned a similar cumulative amount but have a much smaller unpaid prima balance.

Similarly, after an annual cesantías deposit has been made, the employer should not treat that deposited amount as a new cash obligation owed again at exit.

This is one reason a basic severance calculator may give an incomplete picture of the actual exit invoice.

A complete model needs the hire date, exit date, benefit payment history, fund deposits and payroll cutoff information.

The Costs That Cannot Be Reliably Predicted From Salary Alone

Some termination-related liabilities cannot responsibly be reduced to a fixed percentage of monthly salary.

Protected employment circumstances can require additional analysis, including situations involving maternity, health-related employment protections, union protections or allegations of discrimination and retaliation.

The existence of ordinary Article 64 indemnification does not necessarily make a termination legally permissible in these circumstances.

Mutual termination agreements may also involve negotiated amounts that exceed an ordinary statutory minimum. Those amounts depend on the specific agreement rather than a universal severance formula.

Delayed or improper final payment can create another risk. Article 65 of the Labor Code addresses compensation associated with failures to pay wages and benefits at termination.

However, Colombia’s Supreme Court has held that moratory indemnification is not imposed automatically. The circumstances and the employer’s conduct must be assessed.

For an EOR client, the critical question is whether the provider’s commercial agreement allocates these risks to the client, the provider or both under defined circumstances.

They should be classified as contingent exposures until the relevant facts and terms are known, rather than inserted into every exit estimate as guaranteed charges.

What a Colombia EOR Exit Exposure Calculator Should Show

A useful employer-side calculator should go beyond entering salary and receiving a severance figure.

It should generate an itemized reconciliation with the following inputs and outputs.

Calculator input	Why it matters
Monthly gross salary	Determines the relevant salary bases and indemnification bracket
Actual start and separation dates	Establishes service duration and accrual periods
Contract type and agreed expiry	Determines the applicable termination framework
Reason for termination	Determines whether Article 64 indemnification may arise
Written probation terms	Identifies a potentially relevant early-termination scenario
Previous prima payments	Prevents previously paid entitlements being charged twice
Cesantías deposits and interest payments	Identifies unsettled statutory balances
Vacation records	Determines outstanding leave compensation
Outstanding payroll	Adds earned but unpaid compensation
EOR billing rules	Determines final-month and settlement-month charges
Deposits and reserves	Establishes funding already held by the provider
Refund terms	Identifies expected recovery and cash release timing

The output should distinguish four figures:

1. Gross employee entitlements earned: The cumulative employment benefits and compensation generated through service.
2. Incremental termination liability: Amounts arising specifically from the termination reason, including applicable indemnification.
3. Outstanding employee settlement: Amounts still owed after payments and funding already completed.
4. Net EOR cash exposure: The additional amount the client must fund, accounting for contractual fees, reserves, deposits and potential recoveries.

These figures answer different business questions.

A finance team may want to know the total cost recognized during employment. An HR team may need to know the amount legally payable to the departing worker. A treasury team may need to understand how much additional cash the EOR will request and when a deposit might be returned.

A single severance number cannot answer all three.

Questions to Ask an EOR Before Hiring in Colombia

The most useful time to examine termination exposure is before signing the employment and service agreements.

Employers should ask providers to supply a worked termination estimate using the proposed employee’s actual salary and contract structure.

The estimate should distinguish a resignation, a termination without just cause, a legally supported termination for cause and any relevant fixed-term expiry scenario.

It should also explain whether the EOR bills a complete service month when an employee departs partway through that month.

Other important details include whether a separate fee applies during the final settlement month, the advance processing time required by the provider, the size of any deposit, whether statutory termination reserves are prefunded and the conditions for releasing unused funds.

Finally, the provider should explain who bears legal fees, disputed claims and administrative expenses when a termination becomes contested.

The answers should be tied to the actual service agreement and order form, not only to general statements on a pricing page.

Frequently Asked Questions About Colombia EOR Termination

How much severance is owed after 90 days in Colombia?

For an indefinite-term employee earning COP 5 million monthly and less than ten minimum wages, ordinary employer termination without just cause can trigger COP 5 million in statutory indemnification under Article 64.

In the illustrative model, the worker has also generated approximately COP 3.16 million in statutory entitlements. The exact outstanding settlement depends on prior payments and individual circumstances.

Can an EOR terminate an employee in Colombia after 30 days?

A 30-day employment duration does not independently authorize termination or determine severance. A valid written probation clause may affect the indemnification calculation, while other employment protections still apply.

Does an employee receive statutory benefits after resignation?

Yes. An ordinary voluntary resignation does not eliminate earned salary, accrued prima, cesantías, applicable interest or unused vacation. It does not ordinarily trigger the same indemnification as employer termination without just cause.

Is Colombian termination indemnification the same for fixed-term and indefinite-term contracts?

No. An indefinite-term contract generally uses the salary-and-service formulas in Article 64. A fixed-term contract terminated early without just cause generally uses the salary payable for the remaining contractual term.

Does the EOR pay severance or does the client company pay?

The local EOR is the legal employer responsible for carrying out the applicable employment obligations. The EOR’s commercial agreement may require the client to fund or reimburse those expenses. The exact economic allocation should be checked in the signed contract.

Are EOR deposits refundable when a Colombian employee leaves?

Published provider policies show that deposits and reserves can be refundable after final settlement, subject to deductions, unpaid invoices, disputes and contractual conditions. Refundability and timing are not universal across providers or individual agreements.

Is a 30-day notice period always required for termination in Colombia?

No. Different rules and procedures apply to employee resignation, fixed-term nonrenewal, particular legally supported termination grounds and the EOR’s own processing requirements.

An EOR’s 30-day administrative lead time should not be confused with a universal statutory employer notice payment.

The Real Cost of Leaving Colombia Depends on More Than Severance

For the modeled COP 5 million employee, termination after 90 days can produce approximately COP 8.16 million in accrued benefits and indemnification when the employer terminates an indefinite-term agreement without just cause.

Under a valid 12-month fixed-term agreement with nine contractual months remaining, the same employee can create a much greater potential indemnification liability.

Neither figure automatically represents the cash the hiring company must transfer to its EOR on the departure date.

Previously paid benefits, accumulated reserves, unpaid salary, provider service fees and refundable deposits all change the final position.

That is the financial distinction missing from many simple termination estimates.

The monthly EOR fee describes the ongoing cost of using the provider. It does not, by itself, establish the cost of ending the employment relationship.

For companies comparing Colombia EOR providers, the more useful question is not simply what employment costs each month.

It is how much has already been accrued, what additional liability termination creates, what remains contractually payable and how much prefunded cash can eventually be recovered.

That is the calculation an employer needs before making a hiring commitment.

Sources and Methodology

This analysis reflects sources reviewed for October 2026 and uses illustrative calculations rather than individual legal or payroll advice.

Primary legal and government references:

• Colombian Labor Code, including Articles 46, 47, 64 and 76–80
• Law 2466 of 2025, Colombia’s labor reform
• Colombian Ministry of Justice, employment settlement calculations
• Decree 159 of 2026, minimum monthly wage
• Decree 1470 of 2025, 2026 transport allowance
• Superintendencia Financiera, cesantías interest guidance
• Resolution 2708 of August 20, 2026, which revoked Ministry of Labor Circular 057 of 2026
• Supreme Court of Justice, judgment SL16884-2016 on moratory indemnification

Public EOR documentation reviewed:

• Deel: EOR deposit calculation and settlement
• Deel: EOR deposit refunds
• Remote: EOR reserve payments
• Remote: Colombia local employment terms
• Multiplier: EOR Terms, effective June 1, 2026

The models assume ordinary fixed monthly salary, no transport allowance, no variable compensation and no vacation taken. The annual comparison uses a 360-day accounting convention for one full calendar year. Historical benefit payments are deducted only in the specific final-payment reconciliation example.

Actual costs require a current payroll ledger, the relevant signed employment contract, the EOR service agreement and a review of any applicable employment protections.