Employer of Record Colombia
Hire Colombian professionals compliantly without setting up a legal entity. Sourcy HI acts as your Employer of Record in Colombia — managing payroll, social security, severance, and full labor law compliance so you can focus on building your team.
What Is an Employer of Record in Colombia?
An Employer of Record (EOR) is a company that legally employs workers on your behalf in a foreign country. You direct the work; we handle all the legal, payroll, and compliance obligations. In Colombia, this means we manage everything required under the Código Sustantivo del Trabajo — Colombia's comprehensive labor code.
For U.S. businesses looking to tap into Colombia's deep talent pool — engineers, architects, operations professionals, and specialists — EOR is the fastest, lowest-risk path to building a nearshore team without the cost and complexity of incorporating a Colombian entity.
What Sourcy HI Handles for You
Every compliance obligation, handled. Every payroll run, on time.
Full Colombian Labor Law Compliance
We manage all obligations under the Colombian Labor Code (Código Sustantivo del Trabajo): employment contracts, mandatory benefits, termination procedures, and dispute resolution.
Payroll in COP
We run payroll in Colombian pesos (COP), handling withholding taxes (retención en la fuente), parafiscales (SENA, ICBF, Caja de Compensación), and pension contributions.
Social Security & Benefits
Full enrollment in Colombia's social security system: health (EPS), pension (AFP), occupational risk (ARL), and mandatory severance fund (cesantías e intereses).
Employment Contracts
Locally compliant employment contracts in Spanish, covering fixed-term, indefinite, and project-based arrangements — all aligned with Colombian law.
Fast Onboarding
Onboard Colombian employees in days, not months. No need to incorporate a SAS or branch office. We are already set up and compliant.
Paired with Nearshore Talent
Combine EOR coverage with Sourcy HI's talent sourcing. We find, vet, and hire the right Colombian professionals — then cover them under our EOR umbrella.
Colombian Employer Costs at a Glance
Mandatory employer contributions on top of gross salary (approximate rates, subject to change).
Sourcy HI calculates and remits all contributions on your behalf. You receive a single transparent monthly invoice.
Why Hire in Colombia?
Time Zone Alignment
Colombia runs on Eastern/Central time year-round. No time zone drift — your team works when you work.
Deep Talent Pool
Colombia produces over 200,000 university graduates per year, with strong concentrations in engineering, business, and technology.
Cost Efficiency
Fully loaded Colombian professional costs are typically 40–60% below equivalent U.S. hires, without sacrificing quality.
Cultural Alignment
Colombian professionals are accustomed to working with U.S. companies and clients. English proficiency is high in professional roles.
Frequently Asked Questions
What is an Employer of Record in Colombia?
An Employer of Record (EOR) in Colombia is a third-party company that legally employs workers on behalf of another business. The EOR handles all employment obligations — payroll, taxes, benefits, and compliance — while the client company directs the day-to-day work of the employees.
Do I need a Colombian legal entity to hire through Sourcy HI EOR?
No. That is the primary benefit of EOR. Sourcy HI acts as the legal employer in Colombia, so you can hire Colombian talent without registering a company (SAS, branch, or representative office) in the country.
What mandatory benefits are required in Colombia?
Colombian law requires: health insurance (EPS, ~12.5% of salary), pension fund (AFP, ~16%), occupational risk insurance (ARL, 0.5–8.7%), SENA (2%), ICBF (3%), Caja de Compensación (4%), severance fund (cesantías, 8.33%), severance interest (1%), and a 14-day prima de servicios twice per year.
What types of roles can I hire through EOR Colombia?
Any role that can be performed remotely or in-country: engineers, architects, operations staff, insurance processors, PEO coordinators, virtual assistants, customer service reps, accountants, and more. Sourcy HI specializes in placing professionals aligned with Florida-based industries.
How does billing work for EOR Colombia?
You pay Sourcy HI a transparent monthly fee: the employee's gross salary plus mandatory employer contributions plus our flat EOR margin. No hidden markups. You see exactly what you are paying for.
Can I convert an EOR employee to a direct hire later?
Yes. If you decide to set up your own Colombian legal entity, we can assist with the transition and transfer the employment relationship to your entity with no disruption to the employee.
Ready to Hire in Colombia?
Book a discovery call and we'll walk you through the process, timeline, and costs for your specific roles. No commitment required.
Also available: EOR United States | Sourcy HI Overview