What does terminating an employee actually cost?
Separate dismissal indemnity from earned final pay. Model a real contract, check the legal conditions, and see every amount behind the estimate.
For ordinary Colombian private-sector employment. Enter only unpaid accruals in the final settlement fields. The tool does not determine lawful cause, employee protections, transitional rights or whether an employer can legally end a contract.
Describe the contract
The indemnity formula changes with contract type, pay and service time. All costs are shown in Colombian pesos (COP).
Fixed ordinary or integral monthly salary. Salary averaging for variable pay requires individual review.
A valid integral salary generally needs at least 13 SMMLV; it already incorporates specified ordinary benefits, but not vacation.
For Article 64 planning, fractional service is modeled on a 30/360 basis.
What is still owed?
These fields describe amounts not yet paid or deposited. Do not enter full tenure if previous periods have already been settled.
What needs human review?
Protected status and disputed wage bases can change the outcome. The model never treats a checklist answer as legal clearance.
Indemnity is not the final paycheck
Even if a valid resignation or expiry creates no Article 64 indemnity, amounts already earned generally remain payable.
Indemnización
Compensation for qualifying termination without just cause. The amount is sensitive to contract type, salary tier, service tenure and unexpired contract/project duration.
Article 64 · conditionalLiquidación
Unpaid wages, prima, cesantías, their interest, accrued vacation and other earned amounts. This is a separate settlement of rights already earned.
Settlement · may apply on any exitContingent exposure
Special job protections, contested dismissal grounds, payroll debts, sanctions and legal disputes require separate legal review. They are not silently priced as a percentage.
Unmodeled · verify before actionHow the current severance tiers work
These are the ordinary Article 64 reference formulas for employer dismissal without just cause; the legal and contractual facts must be verified first.
| Contract and salary tier | Indemnity reference | What changes the outcome |
|---|---|---|
| Indefinite · below 10 SMMLV | 30 salary days up to year one; +20 days per additional service year, prorated | Tenure and salary tier |
| Indefinite · 10 SMMLV or more | 20 salary days up to year one; +15 days per additional service year, prorated | The threshold is inclusive at exactly 10 SMMLV |
| Fixed term | Salary corresponding to valid unexpired contract period | Correct expiry date, renewals, notice and contract validity |
| Defined project or work | Salary for remaining estimated work period; not less than 15 days | Valid detailed written scope and actual remaining duration |
Under Law 2466 of 2025, an employee's 30-calendar-day resignation notice cannot be converted into a contractual penalty for failing to give it. Valid fixed-term contracts have a separate 30-day nonrenewal notification rule. Neither is a universal extra 30 days of dismissal pay.
Before making the final payment
A practical checklist for payroll, legal and HR rather than a legal finding from a calculator.
Check written terms, extensions, project scope, probation and legal status before selecting a formula.
Collect grounds, notices, hearing records and other procedural evidence where applicable.
Remove prima already paid, cesantías deposited, interest settled, vacation taken and advances already repaid.
Pregnancy, health/disability, union status, collective dismissals or other protections may require special steps.
Reconcile salary, benefits, premiums, commissions, lawful deductions and the relevant PILA exit reporting.
Article 65 late-payment claims depend on the facts and applicable legal standards; they are not a flat automatic add-on.
Verify the legal basis
Direct official or government-hosted texts supporting the modeled formulas and the limits of this estimate.