How much are severance payments? How they are calculated and paid in Colombia in 2026
Severance payments are equivalent to one month's salary per year worked and are deposited in authorized funds. Photo: Istock
TL;DR
- Severance pay is a mandatory benefit in Colombia, designed to support workers during unemployment.
- Employers must contribute one month's salary per year of service, managed by specialized administrators.
- Withdrawal is restricted to specific situations: job termination, housing, or education.
- Proportional severance pay is due for periods less than a full year.
- Employers must also pay interest on severance pay at an annual rate of 12%.
- Specific documentation is required for withdrawal requests related to housing or education.
- Delays in payment or disbursement can lead to intervention by the Ministry of Labor.