Employer cost in Colombia at different salaries
| Salary level | Gross salary | Employer SSC | Mandatory non-tax payments | Total employer cost |
|---|---|---|---|---|
| 67% of AW | 21,133,336 COP | 0.0% | 12.5% | 23,780,075 COP |
| 100% of AW | 31,542,293 COP | 0.0% | 12.5% | 35,491,704 COP |
| 167% of AW | 52,675,629 COP | 0.0% | 12.5% | 59,271,672 COP |
Worked example
The OECD average wage in Colombia for 2025 is 31,542,293 COP (about $20,534 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 0.0%, or 0 COP. On top of social security, employers must also make 12.5% in mandatory non-tax payments (mandatory pension and health contributions), which the OECD reports separately from taxes but which are a real cost of employment. That brings the statutory total to 35,491,704 COP a year (2,957,642 COP a month), or 17,063 COP per hour at 2,080 hours. In 2024 the rate at the average wage was 0.0%, so it was essentially unchanged. The rate stays at about 0.0% even at 167% of the average wage, so it scales with pay.
Colombia ranks #37 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%). Employer contributions are low here, so most of the wage wedge falls on the employee side.
Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
Related
Frequently asked questions
How much does an employee cost in Colombia?
At the OECD average wage of 31,542,293 COP, about 35,491,704 COP a year including 0.0% employer social security (2025).
What are employer social security contributions in Colombia?
About 0.0% of gross pay at the average wage, 0.0% at 67% and 0.0% at 167% of it (OECD model).