Incentive for the creation of new formal employment opportunities

Formal Jobs

The aforementioned regulation defines new formal jobs as the hiring of new workers through a labor contract, where their employment can be verified through the contributions made to the Integrated Contribution Payment Form – PILA, for the month prior to the companies’ registration date to apply and benefit from this incentive.

Incentive Beneficiaries

Beneficiaries include legal or natural persons, consortia, temporary unions, and autonomous patrimonies that can prove they are employers through the Integrated Contribution Payment Form – PILA, provided they have made full contributions for the month to the Comprehensive Social Security System. Employers must keep the new workers formally employed for at least 6 months and have a deposit product in an entity overseen by the Financial Superintendence of Colombia or the Superintendence of the Solidarity Economy.

Incentive Duration

The incentive applies from the publication of the aforementioned regulation on April 28, 2024, until August 2026.

Incentive Amount

For the formal hiring of the following groups of individuals, the benefits are as follows:

• Young people between 18 and 28 years old: The benefit is a contribution of 30% of the current legal monthly minimum wage (SMMLV) for each of these workers, with contributions to the social security subsystems for at least the 6 months prior to the application date, within the timeframe established by this regulation.

• Women over 28 years old earning up to 3 SMMLVs: The benefit is a contribution of 20% of the current legal monthly minimum wage (SMMLV) for each of these workers, with contributions to the social security subsystems prior to the application date, within the timeframe established by this regulation.

• Men over 28 years old earning up to 3 SMMLVs: The benefit is a contribution of 15% of the current legal monthly minimum wage (SMMLV) for each of these workers, with contributions to the social security subsystems prior to the application date, within the timeframe established by this regulation.

• Persons with disabilities: The state contribution will be 35% of the current legal monthly minimum wage (SMMLV) for each worker, with contributions to the social security subsystems prior to the application date, within the timeframe established by this regulation.