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Payroll taxes in Colombia: pension, health, SENA, ICBF, family fund and occupational risk contributions

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Last verified: 2026-10-26 · Status: Changing

Colombian employers pay 12 percent pension, 8.5 percent health, 4 percent family compensation fund, 2 percent SENA, 3 percent ICBF and an occupational risk premium from 0.522 percent, while employees pay 4 percent pension and 4 percent health. Companies that file income tax are exempt from health, SENA and ICBF for employees earning under 10 minimum wages (COP 17,509,050 a month in 2026), so employer contributions run at about 16.5 percent below that level and about 30 percent above it. Employers also withhold income tax on salaries under the art. 383 table.

USD figures use the TRM of COP 3,158.43 per US dollar, valid 24 to 26 October 2026, from the official TRM series certified by the Superintendencia Financiera and published on datos.gov.co. UVT amounts use the 2026 UVT of COP 52,374 (DIAN Resolución 000238 de 2025). Conversions are for orientation only.

Key facts

Monthly minimum wage 20261750905 COPDecreto 1469 de 2025, as of 2026-10-26 · in force
Pension contribution, total16 %Decreto 1833 de 2016 art. 2.2.3.1.6, as of 2026-10-26 · in force
Pension contribution, employer share12 %Ley 100 de 1993 art. 20 (75 percent of 16 percent), as of 2026-10-26 · in force
Pension contribution, employee share4 %Ley 100 de 1993 art. 20, as of 2026-10-26 · in force
Health contribution, employer share (exempt below 10 minimum wages for income taxpayers)8.5 %Ley 100 de 1993 art. 204; Estatuto Tributario art. 114-1, as of 2026-10-26 · in force
Health contribution, employee share4 %Ley 100 de 1993 art. 204, as of 2026-10-26 · in force
Family compensation fund contribution4 %Ley 21 de 1982 art. 12, as of 2026-10-26 · in force
SENA payroll levy (exempt below 10 minimum wages for income taxpayers)2 %Ley 21 de 1982 art. 12; Estatuto Tributario art. 114-1, as of 2026-10-26 · in force
ICBF payroll levy (exempt below 10 minimum wages for income taxpayers)3 %Ley 89 de 1988 art. 1; Estatuto Tributario art. 114-1, as of 2026-10-26 · in force
Occupational risk insurance, employer, initial rates class I to V0.522 to 6.960 %Decreto 1072 de 2015 art. 2.2.4.3.5, as of 2026-10-26 · in force
Salary below which SENA, ICBF and employer health are exempt for income taxpayers10 monthly minimum wagesEstatuto Tributario art. 114-1, as of 2026-10-26 · in force
UVT for 202652374 COPDIAN Resolución 000238 de 2025, as of 2026-10-26 · in force
TRM used for USD conversions (valid 24 to 26 October 2026)3158.43 COP per USDOfficial TRM series, Superintendencia Financiera de Colombia, as of 2026-10-24 · in force

The rule

1. The 2026 monthly minimum wage is COP 1,750,905 from 1 January 2026. The Consejo de Estado provisionally suspended Decreto 1469 de 2025 on 12 February 2026 and the government issued transitional Decreto 159 de 2026; that decree is noted in the official compilation as having served its purpose once the suspension of Decreto 1469 was lifted. Several payroll thresholds below are expressed in minimum wages.
Example: Minimum wage COP 1,750,905 a month; 10 minimum wages = COP 17,509,050; 4 minimum wages = COP 7,003,620. / About US$554 a month; 10 minimum wages about US$5,544.Decreto 1469 de 2025 (Ministerio del Trabajo); Decreto 159 de 2026, Decreto 1469 art. 1 and 2; Decreto 159 de 2026, vigencia note, 2025-12-29 official text · verified 2026-10-26
2. The pension contribution is 16 percent of the contribution base. Employers pay 75 percent of it (12 points) and employees 25 percent (4 points). Employees earning 4 minimum wages or more pay an extra 1 percent to the pension solidarity fund, and those earning 16 minimum wages or more a further 0.2 to 1 percent by bracket (1 percent above 20 minimum wages).
Example: Salary of COP 5,000,000: employer COP 600,000, employee COP 200,000. / About US$1,583 of salary: employer about US$190, employee about US$63.Ley 100 de 1993 art. 20, as amended by Ley 797 de 2003 art. 7; Decreto 1833 de 2016, Ley 100 art. 20 (employer and employee shares, solidarity contributions); Decreto 1833 art. 2.2.3.1.6, 2016-11-10 official text · verified 2026-10-26
3. The health contribution is 12.5 percent of the contribution base, never below the minimum wage: 8.5 percent paid by the employer and 4 percent by the employee.Ley 100 de 1993, as amended by Ley 1122 de 2007 art. 10, Art. 204, first paragraph, 2007-01-09 official text · verified 2026-10-26
4. Companies and other legal entities that file income tax returns are exempt from the SENA (2 percent) and ICBF (3 percent) payroll levies and from the employer's 8.5 percent health contribution for each employee earning, individually, less than 10 minimum wages. For employees earning 10 minimum wages or more the levies and contributions remain due. Free trade zone users taxed under art. 240-1 keep the exemption, but those with legal stability contracts do not.
Example: Threshold in 2026: 10 x COP 1,750,905 = COP 17,509,050 a month. / About US$5,544 a month.Estatuto Tributario (Decreto 624 de 1989), added by Ley 1819 de 2016 art. 65, Art. 114-1, first paragraph, par. 1, 3 and 4; art. 240-1 par. 3, 2016-12-29 official text · verified 2026-10-26
5. Private employers pay payroll contributions of 4 percent to the family compensation fund (caja de compensación familiar) and 2 percent to SENA, on the monthly payroll.Ley 21 de 1982, Art. 12, num. 1 and 2, 1982-01-22 official text · verified 2026-10-26
6. Employers pay 3 percent of the monthly payroll to the Instituto Colombiano de Bienestar Familiar (ICBF), collected together with the family compensation fund contributions.Ley 89 de 1988, Art. 1 and par. 1, 1988-12-29 official text · verified 2026-10-26
7. Occupational risk insurance (ARL) is paid entirely by the employer at a rate set by the risk class of the activity: class I 0.348 to 0.696 percent (initial 0.522), class II 0.435 to 1.653 (initial 1.044), class III 0.783 to 4.089 (initial 2.436), class IV 1.740 to 6.060 (initial 4.350) and class V 3.219 to 8.700 (initial 6.960). Companies joining for the first time pay the initial rate of their class.Decreto 1072 de 2015 (Decreto Único Reglamentario del Sector Trabajo), Art. 2.2.4.3.5, 2015-05-26 official text · verified 2026-10-26
8. Employers withhold income tax monthly on employment income (and on pensions) using the table in art. 383, expressed in UVT; the same table applies to income from work that does not arise from an employment relationship, calculated on the monthly equivalent of the contract value less mandatory health and pension contributions. Individuals may ask in writing for a higher withholding rate.Estatuto Tributario, art. 383 as amended by Ley 2010 de 2019 art. 42 and Ley 2277 de 2022 art. 8, Art. 383, first paragraph, par. 2 and 3, 2022-12-13 official text · verified 2026-10-26
Monthly salary (COP)Exempt under art. 114-1Pension 12%Health 8.5%Family fund 4%SENA 2% + ICBF 3%ARL 0.522%Total employer cost
5,000,000Yes600,0000200,000026,100826,100 (16.52%, US$262)
20,000,000No2,400,0001,700,000800,0001,000,000104,4006,004,400 (30.02%, US$1,901)

Monthly employer payroll cost for one employee in 2026, risk class I at the initial ARL rate (0.522 percent), excluding wage related benefits (severance, service bonus, vacations; see labor/employing-people)

Worked example

  • A foreign owned SAS hiring an engineer at COP 5,000,000 a month (below 10 minimum wages) pays COP 826,100 of employer contributions (16.52 percent, about US$262) because the exemption of art. 114-1 removes health, SENA and ICBF; the engineer bears COP 400,000 of pension and health.
  • For a country manager at COP 20,000,000 a month (above 10 minimum wages) the employer pays COP 6,004,400 (30.02 percent, about US$1,901) and the employee bears 4 percent pension, 4 percent health and 1 percent solidarity fund.

Step by step

  1. Register the company as an employer with a family compensation fund, an occupational risk insurer and the pension and health systems before the first hire.
  2. Classify each worker's risk class for ARL (Decreto 1072 art. 2.2.4.3.5).
  3. Check each salary against 10 minimum wages (COP 17,509,050 in 2026) to apply or not the art. 114-1 exemption.
  4. Pay contributions monthly through the integrated contributions form and withhold income tax on salaries under the art. 383 table, declared in the monthly withholding return.
  5. Update the calculations each January when the new minimum wage and UVT are set.

Common traps

  • The art. 114-1 exemption applies per employee: an employee at 10 minimum wages or more triggers SENA, ICBF and employer health on that salary only.
  • Companies with legal stability contracts in free trade zones lose the exemption (art. 240-1 par. 3).
  • The 2026 minimum wage decree was suspended and reinstated by the Consejo de Estado during 2026; check the current status before setting thresholds.
  • The pension reform of Ley 2381 de 2024 changes the pension system from 1 April 2027 (see labor/employing-people); contribution rates above are those in force on 26 October 2026.

Sources

Related pages

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