Opening a Colombian entity is slow and costly
Incorporating, registering, and maintaining a legal entity abroad can take months and ongoing overhead, just to make one or two hires.
With an EOR you hire in days, on our existing Colombian entity.
Gesthion · Nearshore hiring in Colombia
Employer of Record (EOR) in Colombia
Hire, pay, and manage employees in Colombia, fully compliant, with no local entity required.
In short
Gesthion is a Colombian Employer of Record that hires, pays, and manages employees in Colombia on your behalf, fully compliant with local labor law, so US companies can hire in Colombia without setting up an entity, since 2008.
Same-business-day reply · Nearshore, US-overlapping hours
2008
In business 18 years
98%
effectiveness
Local
Real Colombian entity & expertise
ADN Corporativo method
The problem
Hiring in Colombia the hard way is slow and risky
Opening a local entity takes months, misclassifying an employee as a contractor is a liability, and running Colombian payroll and benefits is a specialty of its own. An Employer of Record removes all three.
Paying a "contractor" who works like an employee is a risk
In Colombia, a 1099-style contractor doing an employee's job can be reclassified, with back-pay of benefits and contributions clawed back retroactively.
We employ your person compliantly from day one, no misclassification.
Colombian payroll and mandatory benefits are complex
Payroll in COP, cesantías, prima, pension, health, ARL and severance follow rules that differ sharply from the US.
We run all of it for you: payroll, benefits, taxes and compliance.
Definition
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is a company that becomes the legal employer of your worker in a country. In Colombia, Gesthion employs, pays, and manages your team member on a compliant local contract, while you direct their day-to-day work, so you can hire in Colombia without opening your own entity.
The employer of record meaning is simple: on paper, the EOR is the employer: it holds the contract and takes on payroll, benefits, taxes, social security, and labor-law compliance. In practice, the person is part of your team and reports to you.
It's the fastest, lowest-risk way for a US company to employ someone in Colombia: no entity, no misclassification, no local HR/payroll build-out.
EOR vs. PEO vs. contractor. An EOR is the sole legal employer, so you need no local entity, which is why our employer of record services fit companies with no Colombian presence. A PEO in Colombia co-employs and usually requires you to already have a local entity. A contractor (1099-style) shifts compliance risk onto you if the person really works as an employee.
The nearshore wedge
Why hire in Colombia
Colombia is one of the strongest nearshore markets for US companies, especially to hire developers and tech talent, thanks to time-zone overlap, bilingual professionals, and real cost efficiency.
Same working hours
Colombia overlaps US time zones, so your team collaborates in real time, not overnight.
Strong tech & bilingual talent
A deep pool of bilingual professionals and developers, ideal to hire developers in Colombia.
Cost efficiency
Competitive total cost versus a comparable US hire, without compromising on quality.
The process
How hiring through an EOR works
A clear, compliant flow: you pick the person, we become their legal employer in Colombia, and you keep managing the work.
You select the person
You choose who to hire and agree on role, compensation and start date.
We employ them locally
Gesthion signs a compliant Colombian employment contract as the legal employer.
Payroll, benefits & taxes
We run payroll in COP, mandatory benefits, taxes and social security.
Compliance & severance
We handle labor-law compliance, filings and severance obligations.
You manage the work
Your team member reports to you and does the day-to-day job.
Verified 2026 data
What does it really cost to employ someone in Colombia in 2026?
A hire in Colombia costs more than the salary. These are the verified 2026 figures every US employer should know before hiring, the local depth global platforms rarely explain.
$1,750,905 COP
Monthly minimum wage (SMMLV) 2026 · ≈ US$438
≈ $2.8M COP
Total employer cost of a minimum-wage employee · ≈ US$700/mo
+38–52%
Employer burden over salary (with vs. without the Art. 114-1 exemption)
| Item | 2026 value |
|---|---|
| Monthly minimum wage (SMMLV) | COP $1,750,905 · ≈ US$438 |
| Transport allowance | COP $249,095 · ≈ US$62 |
| Total minimum monthly income | COP $2,000,000 · ≈ US$500 |
| Total employer cost (min-wage employee) | ≈ COP $2.8M · ≈ US$700 |
| Component | % | Note |
|---|---|---|
| Cesantías (severance savings) | 8.33% | Mandatory benefit |
| Interest on cesantías | ~1% | 12% per year |
| Prima (13th-month equivalent) | 8.33% | Mandatory benefit |
| Vacation | 4.17% | Paid leave |
| Benefits subtotal | ~21.8% | |
| Pension (employer) | 12% | Always paid |
| Health (employer) | 8.5% | Exempt < 10 SMMLV |
| ARL (work-risk) | 0.522%–6.96% | By risk class (I–V) |
| SENA | 2% | Exempt < 10 SMMLV |
| ICBF | 3% | Exempt < 10 SMMLV |
| Family compensation fund (CCF) | 4% | Always paid |
Figures current as of June 2026. Source: Decrees 1469 & 1470 of 2025 (Colombian Ministry of Labor). USD amounts are approximate and vary with the exchange rate. Gesthion validates final numbers.
The detail global EOR platforms gloss over: the aportes exemption (Art. 114-1, Law 1819 of 2016).
Legal entities do not pay health (8.5%), SENA (2%) or ICBF (3%) for employees earning under 10 SMMLV (COP $17,509,050 in 2026), the vast majority of hires. That's why the employer burden is about salary +38–40% with the exemption, versus +52% without. Misapplying this is exactly what Colombia's UGPP and other oversight bodies claw back up to 5 years retroactively, and the kind of local nuance a real Colombian employer handles and a global dashboard often doesn't.
The difference
Gesthion vs. global EOR platforms
Deel, Remote, Oyster and Velocity Global treat Colombia as one row in a global table. Gesthion is a real Colombian company that lives and breathes local compliance.
| What matters | Gesthion | Global EOR platforms |
|---|---|---|
| Local Colombian compliance | Deep: it's our home market since 2008 | Colombia is one country among 100+ |
| Legal entity in Colombia | Our own, real entity since 2008 | Often a local partner/aggregator |
| Support | Dedicated humans, not a ticket queue | Platform-first, tiered support |
| Aportes exemption (Art. 114-1) | Applied correctly, UGPP & oversight-aware | Often generalized, not local-deep |
| Nearshore alignment | Colombia-focused, US-overlapping hours | Global, not Colombia-specialized |
Why Gesthion
A real Colombian partner, not a dashboard
As a Colombia Employer of Record, we've operated HR, payroll and compliance here since 2008. Employing your team in Colombia is our core business, not a line item in a global platform.
18 years
In business since 2008
Nearly two decades running payroll, benefits and compliance for companies in Colombia and LATAM.
98%
Proven effectiveness
Auditable processes and senior expertise behind a 98% effectiveness rate.
Local
Real Colombian entity
We are the legal employer on our own Colombian entity, not a reseller of someone else's.
Compliance
Deep labor-law expertise
Colombian labor law, the aportes exemption and UGPP / oversight-body risk, handled by people who do it daily.
Human
Dedicated support
You work with real people who know your account, not a generic ticket queue.
360°
Full HR under one roof
Payroll, recruitment and HR: see our payroll outsourcing and RPO.
·
Client reviews
What our Colombian clients say
Real reviews from Gesthion's clients, verified on Google (shown in their original Spanish).
Swipe or use the arrows to browse a selection of our 70 verified reviews
FAQ
Hiring in Colombia through an EOR: your questions
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is a company that legally employs workers on behalf of another business. In Colombia, Gesthion becomes the legal employer of your team member, running payroll, benefits, taxes and social security, and handling full compliance with Colombian labor law, while you direct their day-to-day work. It lets a US company hire in Colombia without setting up a local entity.
What is the difference between an EOR and a PEO?
An EOR is the sole legal employer of your worker in the country, so you don't need your own local entity. A PEO (co-employment) shares employer responsibilities but usually requires you to already have a local entity. For a US company hiring in Colombia without an entity, the EOR model is the fit, and Gesthion is the legal employer in Colombia.
EOR vs. hiring a contractor in Colombia: which is safer?
Hiring someone in Colombia as an independent contractor (1099-style) when they work like an employee is a misclassification risk: Colombian authorities can reclassify the relationship and claw back benefits and contributions retroactively. An EOR employs the person compliantly from day one, eliminating that risk while still letting you manage their work.
How much does it cost to employ someone in Colombia?
In 2026 the monthly minimum wage (SMMLV) is COP $1,750,905 (≈ US$438) plus a transport allowance of COP $249,095 (≈ US$62). On top of salary, the employer pays mandatory benefits and contributions: with the Art. 114-1 exemption the burden is about salary +38–40%; without it, about +52%. The total employer cost of a minimum-wage employee is roughly COP $2.8M/month (≈ US$700). Gesthion validates final figures.
How long does onboarding take?
Once you select the person and share their details, onboarding onto a compliant Colombian employment contract typically takes days, not the weeks or months required to open your own local entity. Exact timing depends on documentation and the role.
Is hiring through an EOR in Colombia legal and compliant?
Yes. Gesthion is a real Colombian company operating since 2008, and employs your team member under a compliant local contract, meeting Colombian labor law, payroll, benefits and social-security obligations. This is exactly the local depth that global EOR platforms often handle superficially.
What benefits are mandatory in Colombia?
Mandatory items include cesantías (severance savings, 8.33%), interest on cesantías (~1%), prima (a 13th-month-style payment, 8.33%), paid vacation (4.17%), pension (12%), health (8.5%), work-risk insurance ARL (0.522%–6.96%) and the family compensation fund CCF (4%). Under the Art. 114-1 exemption, legal entities do not pay health, SENA and ICBF for employees earning under 10 SMMLV.
Can I hire developers in Colombia through an EOR?
Yes. Colombia is a strong nearshore market for developers and tech talent: US-overlapping time zones, bilingual professionals and cost efficiency versus US hires. With Gesthion as your Employer of Record, you can hire developers in Colombia on compliant local contracts without opening an entity.
Get started
Hire your team in Colombia: book a call
Tell us who you want to hire in Colombia and we'll walk you through cost, timing and compliance. Same-business-day reply.
- No entity required, hire in days.
- Fully compliant Colombian employment.
- A real local team, not a ticket queue.
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WhatsApp +57 321 873 3257
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