Payroll deductions in Colombia
Your salary has 4% for health and 4% for pension deducted. If you earn four minimum wages or more ($7,003,620 in 2026), the Pension Solidarity Fund applies: 1%, rising to 2% above 20 minimum wages. The contribution base is capped at 25 minimum wages.
Transport allowance
In 2026 it is $249,095 a month for employees earning up to two minimum wages ($3,501,810). It is not salary, so no health or pension is deducted from it.
Withholding tax (procedure 1)
Mandatory contributions are subtracted from employment income. Then deductions (dependents up to 32 UVT a month, home loan interest up to 100 UVT, private health up to 16 UVT) and the 25% exempt income, capped at 790 UVT a year, are taken off. Deductions plus exempt income cannot exceed 40% of net income or 1,340 UVT a year. The result is converted into UVT ($52,374 in 2026) and the Article 383 table applies: 0% up to 95 UVT, 19% up to 150, 28% up to 360, 33% up to 640, 35% up to 945, 37% up to 2,300 and 39% above.
In practice, a standard salary of up to about $7.2 million with no other deductions usually has no withholding.
Benefits you don’t see each month
On top of monthly pay, employers pay a service bonus (one month’s salary a year, in two parts), severance (one month a year, paid into a fund) and 12% interest on severance. With an integral salary these are already built into the 30% benefits factor.