What Are the Special Payroll Processes for Employees in the Upcoming Months?

Service Bonus

• On December 20, all employees in Colombia with a formal labor contract, except those earning an integral salary, must receive the service bonus, equivalent to 50% of one month's salary per year.

• To calculate the base amount, the employee’s salary income from July 1 to December 31 is added. This includes transportation allowances for employees earning less than two current legal minimum wages.

• Periods of absence due to leaves or medical incapacities do not affect the service bonus calculation base.

• Failure to pay this bonus results in a penalty for the employer, equal to one day of the employee’s current salary for each day of delay.

Provision of Work Supplies

• Applies to companies with one (1) or more permanent employees.

• Employees must have been employed by the company for more than three (3) months.

• Eligible employees must earn up to two (2) current legal minimum wages.

• The next distribution date is December 20.

• Employers are prohibited from compensating this benefit with monetary payments.

Interest on Severance Pay

• This benefit is granted to all employees with a formal labor contract, except those earning an integral salary.

• Payment must be made via payroll no later than January 31.

• The payable amount is based on the consolidated balance as of December 31 of the previous year.

• Employers who fail to meet this deadline are subject to a penalty equal to 100% of the interest on severance pay.

Severance Pay

• By February 14, companies are required to deposit severance pay for all employees, except those earning an integral salary.

• The severance pay amount corresponds to one annual salary. The calculation base includes transportation allowances for employees earning up to two (2) current legal minimum wages.

• The employee chooses the severance fund where the payment should be deposited.

• The purpose of this benefit is to establish a savings fund for employees, which they can access upon termination of their employment. Employees may also request partial withdrawals from the fund for housing and education, subject to the specific conditions outlined in labor laws.

• Employers failing to deposit severance pay by the legally mandated date must compensate the employee with a penalty of one day’s salary for each day of delay.