Labor and Pension Regulatory Overview in Colombia
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Labor and Pension Regulatory Overview in Colombia
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1. Types of Home Office 

Pursuant to Law 2466 of 2025 (Labor Reform), enacted by the Colombian Congress, Home Office is regulated through five specific modalities, designed to adapt to different realities and ways of rendering services without continuous physical presence at the employer’s premises.

  1. Autonomous Home office: This modality applies when the teleworker freely chooses their place of work, performs their duties permanently on a remote basis, and only attends to the employer’s facilities when expressly required.
  2. Mobile Home Office: This modality applies when teleworkers do not have a fixed or established place of work.
  3. Hybrid Home Office: A modality in which remote work and on-site work alternate during the workweek, combining days worked from home with days worked at the employer’s premises. This modality requires flexibility, accountability, mutual trust, and a results-oriented approach.
  4. Transnational Home Office: A modality in which the employee, formally employed under Colombian labor law, renders services from another country. In this case, the employee is responsible for their immigration status, while the employer must provide health insurance and ensure coverage of economic benefits through the Colombian Social Security System.
  5. Temporary or Emergency Home Office: A modality applicable in exceptional circumstances, such as public health emergencies or natural disasters, without affecting the existing legal framework governing work-from-home arrangements.

Selecting the appropriate telework modality not only ensures legal compliance but also strengthens organizational efficiency, employee well-being, and long-term sustainability.

See: Attached document in PDF format.

 

2. Minimum Wage Indexation within the General Pension System.

On December 31, 2025, The Treasury Ministry and Public Credit enacted Decree 1485, through which it amended the coverage regime applicable to the minimum wage indexation mechanism under the General Pension System.

This mechanism is designed to allow insurers to cover the risk associated with increases in the minimum wage applicable to pensions paid under the life annuity modality (both immediate and deferred), particularly when such increases exceed the technical variation expected based on inflation and productivity. 

Main Changes Introduced

According to available analyses and summaries, the decree introduces the following key change:

  • Redefinition of the technical parameter is used to calculate coverage for minimum wage indexation, replacing previous criteria based on productivity averages.
  • Elimination of interest recognition on coverage when there is a positive differential between the minimum wage increase and the applicable technical criteria.
  • Introduction of new requirements and procedures for the registration of life annuities and the calculation of the corresponding coverage.
  • Strengthening of fiscal and technical oversight of the mechanism under the supervision of the Financial Superintendence of Colombia. 

These adjustments aim to improve the pension system's financial sustainability amid rising minimum wages. However, they have generated debate within the sector, as some analysts and industry associations argue that they may shift greater financial risk to insurers and future pensioners, potentially affecting the feasibility of retirement for contributors to private pension funds earning minimum wages.

See: Attached document in PDF format.

 

3. Guidelines for the Authorization of Employee Dismissals. 

Circular 120 of 2025, issued by the Colombian Ministry of Labor on November 27, 2025, establishes the internal guidelines that Ministry officials must observe when processing and deciding requests for authorization to dismiss employees, public servants, or contractors who benefit from reinforced labor or occupational stability due to:

  • Disability.
  • Medical conditions.
  • Situations of manifest vulnerability that may give rise to discrimination.

Labor and Social Security Inspectors must:

  • Verify compliance with procedural due process.
  • Assess whether the dismissal is based on non-discriminatory grounds.
  • Require adequate evidentiary support submitted by the employer.
  • Evaluate whether measures such as reasonable accommodations, rehabilitation, or reassignment were exhausted before authorizing termination of the Labor relationship.
  • Guarantee the affected employee’s rights to defense and participation throughout the administrative proceeding. 

The purpose of these guidelines is to ensure that dismissal decisions in such cases are non-discriminatory and aligned with the constitutional, legal, and international human rights and labor protection framework.

See: Attached document in PDF format.

 

The content of this newsletter is merely informative, that´s why it cannot be used under any circumstances as advice on the matter described in it. If you need advice on any of the aspects discussed, our team of professionals will be willing to assist you. contacto@jadelrio.com

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