Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
COVID-19 Relief to Protect Employment
New Order or Decree
Author: Manuela Gnecco, Associate – Littler Colombia
In response to the COVID-19 pandemic, Colombia has established a number of measures to protect employment in Colombia, including payroll support and reduction to social security contributions. Under Decree No. 558 of 2020, for the months of April and May, the social security contributions for retirement (typically at 16%, 12% from the employer and 4% from the employee) are reduced to 3% (i.e., 2.25% and 0.75%, respectively). Additionally, through “PAEF”, a formal employment aid program created under Decree No. 639 of 2020, employers can receive aid up to 40% of the minimum monthly statutory salary multiplied by the number of employees. Further, Decree No. 770 of 2020 created “PAP”, a bonus payment support program, to provide eligible businesses with financial support so they can pay bonuses to their employees.