“Discover the Real Monthly Cost of an Employee in Colombia in 2023 – Including the Increase in Minimum Wage and Additional Payments such as Social Security, Health, Contributions to the Workers’ Compensation Fund and more.”
The increase in the minimum wage is a measure aimed at improving the working and economic conditions of workers in Colombia. However, it is important to keep in mind that this increase has a direct impact on the total cost that employers must bear when hiring an employee.
In 2023, the minimum wage was adjusted to $1,160,000, which means an increase in costs for employers. In addition, if the worker is entitled to transportation allowance, the total cost rises to $1,300,000.
But the increase in the minimum wage is not the only factor that affects the total cost of an employee. Employers must also consider additional payments such as social security, health, contributions to the Workers’ Compensation Fund, bonuses and severance pay, severance interest, paid vacation days, taxes and additional provision, which in total, amount to $1,9 million for the year 2023.
Therefore, the increase in the minimum wage has a significant impact on the total cost of an employee, and employers must take this into account when making decisions about hiring and financial planning.
List of concepts and values:
Minimum wage 2023: $1,160,000 Transportation allowance: $135,920 Health: $98,600 Pension: $139,200 Workers’ Compensation Fund: $6,032 Additional taxes: $104,400 Bonus: $92,800 Severance pay: $96,628 Severance Interest: $11,600 Vacation days: $48,372 Additional provision: $58,000
The real total monthly cost of an employee in 2023 is $1,951,552.