Transcription
Hi, I'm Sarah Williams, a recruitment specialist at Skills Provision. Today I'm going to discuss the hiring of international workers in Colombia. The country remains an attractive market for skilled international talent. Local firms, from fintechs and software houses in Bogota and Medellin to professional services firms in Cali and Barranquilla are increasingly open to hiring foreigners to fill shortages in software engineering, data science, DevOps, specialized engineering and certain financial and legal roles. A number of reports and industry guides note strong year on year growth in international hiring and nearshoring to Colombia. Demand is amplified by two linked trends 1 Colombian firms scaling export oriented services and 2 broader adoption of hybrid remote working models that make cross border employment more feasible. Recent labor law changes also explicitly address teleworking, which affects how employers structure remote roles and benefits for foreign nationals who will live and work in Colombia. The common legal pathway is a migrant visa in a work subcategory which is issued to foreigners with a job offer from a Colombian employer. It can run for up to three years and be renewed. Employers must be properly registered and tax compliant to sponsor such visas. Most hires will require a formal employment contract, employer sponsored supporting documents link letter of intent, proof of company registration and tax status, salary details and colloquially the M5 procedure is the default for directly employed talent. Administrative timelines vary but are generally manageable if documentation is complete. Colombian employers who hire foreigners are subject to the same labor law obligations as for local hirespayroll taxes, Social Security contributions, pension, health, labor risks, statutory benefits and minimum wage rules all although senior skilled roles typically sit well above the minimum. 2 Operational Notes 1 Payroll and Benefit calculations must reflect local law, including severance and statutory bonuses and two Recent labor law updates include rules on teleworking, connectivity allowances, hybrid arrangements which can affect remote employees entitlements. Employers should update contracts and policies accordingly. Skilled salaries in Colombia are competitive for the region. While lower than US UK levels, they are higher than many neighboring markets. For the same seniority in tech and finance. Colombian firms must budget for total employment cost, gross salary plus employer social contributions plus benefits. Currency volatility is a factor. Some candidates now prefer partial or full payment in US dollars or indexed arrangements to guard against peso depreciation and some employers offer dollar linked pay when hiring internationally, expect negotiation around benefits, health top ups, relocation schooling for dependents and senior hires. Direct hire with sponsorship best for medium, long term, key roles gives the firm full control but requires entity, hr, payroll and employer obligations. Requires careful immigration compliance Hire contractors useful for short term or project work simpler to engage but riskier if the role is de facto employment. Colombian authorities scrutinize misclassification. In conclusion, Colombia is a growth market for skilled international hires. There is strong demand in tech services and finance, a workable visa framework, notably the M5 work route, and multiple feasible hiring models. The principal hurdles are administrative visa paperwork, payroll, Social Security, regulatory, recent telework rules, and commercial salary expectations and currency risk. For most Colombian firms, the pragmatic path is to combine short term use of EORs while building internal capacity for direct sponsorship of mission critical roles and to engage immigration and employment specialists early in the process.
