Severance Pay for Unjustified Dismissal in 2026: How to Calculate It Based on Salary, Contract, and Seniority

Portafolio Journalist 04.16.2026 15:59 Updated: 04.16.2026 15:59

Severance Pay for Unjustified Dismissal in 2026: How to Calculate It Based on Salary, Contract, and Seniority

TL;DR

  • Severance pay in Colombia for 2026 depends on contract type, salary, and years of service.
  • For indefinite contracts with salaries under 10 minimum wages: 30 days' pay for the first year, 20 days for subsequent years.
  • For indefinite contracts with salaries over 10 minimum wages: 20 days' pay for the first year, 15 days for subsequent years.
  • For fixed-term contracts, severance equals the remaining contract duration, at a minimum of 15 days' salary.
  • Variable income for severance calculation is based on the average of the last year of service.
  • Severance pay is distinct from final settlement (liquidación), which includes other pending payments.