How to hire remote employees in


Found someone in Colombia you’d like to hire? Maybe a little confused about how to hire them? You’re in the right place. On this page, you’ll learn about how to hire talent in Haiti—without spending months and thousands of dollars getting set up.

Country snapshot

Colombian Peso (COP)
25% - 30%

What to know before you hire in 


Found some great remote talent in Colombia, but slightly more confused about how to hire that talent? Well, you’ve got two options: Hiring talent as employees, or hiring talent as contractors. Here are the big differences between the two.

If you want to successfully hire in 


, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 


. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 


 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 


Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 



It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 


 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

Can be less risky than hiring employees

Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 



If you’re hiring contractors in 


, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 


Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 


If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Colombia than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Colombia.

Taxes in 


Employer tax

Pension Fund

Medical Plan

Labor Risks

Family Compensation Funds

Family Welfare (ICBF)

National Apprenticeship Service (SENA)

Note: Only applies to employees earning 10 times the minimum wage

Individual tax


Paid Time Off (PTO)

PTO is calculated by the:

  • Employees are entitled to 15 paid days of annual leave.

Public Holidays

There are 18 public holidays.

Sick Days

The employer is responsible for paying for the first 2 days of sick leave at the rate of two-thirds of the regular salary.

From the third day on, sick leave is paid by social security at the same rate.

Maternity Leave

Maternity leave is 18 weeks, paid at a rate of 100% salary. The employer makes the payment to the employee and then claims the money back through social security (EPS). 

Paternity Leave

Paternity leave is 8 working days, paid at a rate of 100% salary. The employer makes the payment to the employee and then claims the money back through EPS. 

Parental Leave

There are no provisions in the law regarding parental leave.

Other Leave


Marriage Leave

5 days of paid leave.

Bereavement Leave

5 days. Leave can be paid or unpaid and depends on company policy.


Termination Process

The reason for dismissal must be communicated to the employee in writing upon termination.

  • If the termination is initiated by the employer, it is not mandatory for the employer to give a reason for termination unless there is an allegation of an unfair cause.
  • For pregnant or disabled employees- the employer must get special permission to terminate the employee.
  • For unionized employees- the employer must get permission from a labor judge in order to terminate an employee.
  • If the employee terminates the employment contract due to a breach by the employer, they are entitled to severance payment.

Notice Period

The notice period in Colombia is:

  • When the employee is dismissed for poor performance, a maximum of 15 days’ notice must be given.  The employee is entitled to at least 24 hours to review the dismissal notification and respond.
  • In the case of misconduct or dismissal with a just cause, no notice is required.
  • For employees with a fixed-term agreement, written notice is required at least 30 days prior to the agreement’s expiration.

Severance Pay

The Severance Pay in Colombia depends on the Duration of Employment:

When the termination is without cause, employers are obligated to pay severance. For employees with an indefinite term agreement, the severance will be calculated as follows:

  • Employees earning less than 10 minimum legal monthly wages are entitled to 30 days of wages for the first year of service and 20 days of salary for each additional year of service.
  • Employees earning 10 minimum legal wages or more, will be entitled to 20 days of salary for the first year of service and 15 days of salary for each additional year of service.
  • For employees with a fixed-term agreement, the severance would be equal to the salary of the employee until the term of the agreement expires.

Probation Period

Indefinite contracts- The probation period is 2 months.

Fixed-term contracts- The probation period cannot exceed more than 1/5 of the initially agreed employment term.

Employee requirements in 


Working Hours

Full-time employment is considered 48 hours weekly, and 8 hours daily.

Hours worked in a single day cannot exceed 10. 


Overtime pay rates are as follows:

  • Daytime Overtime – 125% of the regular pay rate
  • Night Overtime – 175% of the regular pay rate
  • Sunday/Holiday Extra Daytime – 175% of the regular pay for holidays and  125% of the regular pay for work during the daytime
  • Sunday/Holiday Overtime – 175% of the regular pay for holidays and work during the night.

Exemptions on overtime compensation:

  • Employees who earn more than 10 times the minimum wage
  • Employees in trust positions- this title must be mandated in the employment contract, and an employee with this position is entitled to night and Sunday overtime only.

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