Net salary in Colombia
v1Ejemplo de AXIOMAComposición del método
Las fórmulas se ejecutan de arriba abajo. Un paso usa el resultado de otro anterior cuando lee una variable con el mismo nombre.
- Monthly salary or fees
- Type of contract
- Minimum wage for the year
- Occupational risk class (ARL)
- Transport allowance for the year
- Value of the UVT tax unit
Paso 1: Fórmula Contribution base
- Usa
- Monthly salary or feesentrada
- Type of contractentrada
- Minimum wage for the yearentrada
- Produce
ibc
Paso 2: Fórmula Health contribution
- Usa
- Contribution basedel paso 1
- Type of contractentrada
- Produce
salud
Paso 3: Fórmula Pension contribution
- Usa
- Contribution basedel paso 1
- Type of contractentrada
- Produce
pension
Paso 4: Fórmula Pension Solidarity Fund
- Usa
- Contribution basedel paso 1
- Minimum wage for the yearentrada
- Produce
solidaridad
Paso 5: Fórmula Occupational risk paid by the worker
- Usa
- Contribution basedel paso 1
- Type of contractentrada
- Occupational risk class (ARL)entrada
- Produce
arl
Paso 6: Fórmula Transport allowance
- Usa
- Type of contractentrada
- Monthly salary or feesentrada
- Minimum wage for the yearentrada
- Transport allowance for the yearentrada
- Produce
auxilio
Paso 7: Fórmula Income after contributions
- Usa
- Monthly salary or feesentrada
- Health contributiondel paso 2
- Pension contributiondel paso 3
- Pension Solidarity Funddel paso 4
- Produce
ingreso_depurado
Paso 8: Fórmula Withholding base in UVT
- Usa
- Income after contributionsdel paso 7
- Value of the UVT tax unitentrada
- Produce
base_retencion_uvt
Paso 9: Fórmula Income tax withholding
- Usa
- Withholding base in UVTdel paso 8
- Value of the UVT tax unitentrada
- Produce
retencion
Paso 10: Fórmula Monthly cost for whoever hires
- Usa
- Type of contractentrada
- Monthly salary or feesentrada
- Occupational risk class (ARL)entrada
- Contribution basedel paso 1
- Transport allowancedel paso 6
- Minimum wage for the yearentrada
- Produce
costo_empleador
Paso 11: Fórmula Net pay
- Usa
- Monthly salary or feesentrada
- Transport allowancedel paso 6
- Health contributiondel paso 2
- Pension contributiondel paso 3
- Pension Solidarity Funddel paso 4
- Occupational riskdel paso 5
- Income tax withholdingdel paso 9
- Produce
salario_neto
ibcsaludpensionsolidaridadarlauxilioingreso_depuradobase_retencion_uvtretencioncosto_empleadorsalario_neto
salariotipo_contratosmmlvriesgo_arlauxilio_transporteuvtsalario_netoHow it is worked out
Work out net pay in Colombia under an employment contract, an all-inclusive salary or a services contract: health, pension, transport allowance and withholding.
Net pay is the salary plus the transport allowance, minus the contributions the worker pays and income tax withheld at source. An employee pays 4 % to health and 4 % to pension on the salary; on an all-inclusive salary, on 70 % of it; a contractor pays 12.5 % and 16 % on 40 % of the fees. From 4 minimum wages the Pension Solidarity Fund is added, and withholding comes from the table in article 383 of the Tax Code.
The formulas that run, in order
- Contribution base
ibc = min(max(salario * (tipo_contrato == "integral" ? 0.7 : tipo_contrato == "servicios" ? 0.4 : 1), smmlv), 25 * smmlv) - Health contribution
salud = ibc * (tipo_contrato == "servicios" ? 0.125 : 0.04) - Pension contribution
pension = ibc * (tipo_contrato == "servicios" ? 0.16 : 0.04) - Pension Solidarity Fund
solidaridad = ibc * buscar(solidaridad_pensional, ibc / smmlv) - Occupational risk paid by the worker
arl = tipo_contrato == "servicios" and riesgo_arl != "IV" and riesgo_arl != "V" ? ibc * buscar(tasas_arl, riesgo_arl) : 0 - Transport allowance
auxilio = tipo_contrato == "laboral" and salario <= 2 * smmlv ? auxilio_transporte : 0 - Income after contributions
ingreso_depurado = salario - salud - pension - solidaridad - Withholding base in UVT
base_retencion_uvt = (ingreso_depurado - min(ingreso_depurado * 0.25, 790 / 12 * uvt)) / uvt - Income tax withholding
retencion = uvt * (base_retencion_uvt <= 95 ? 0 : base_retencion_uvt <= 150 ? (base_retencion_uvt - 95) * 0.19 : base_retencion_uvt <= 360 ? (base_retencion_uvt - 150) * 0.28 + 10 : base_retencion_uvt <= 640 ? (base_retencion_uvt - 360) * 0.33 + 69 : base_retencion_uvt <= 945 ? (base_retencion_uvt - 640) * 0.35 + 162 : base_retencion_uvt <= 2300 ? (base_retencion_uvt - 945) * 0.37 + 268 : (base_retencion_uvt - 2300) * 0.39 + 770) - Monthly cost for whoever hires
costo_empleador = tipo_contrato == "servicios" ? salario + (riesgo_arl == "IV" or riesgo_arl == "V" ? ibc * buscar(tasas_arl, riesgo_arl) : 0) : salario + auxilio + ibc * (0.12 + 0.04 + buscar(tasas_arl, riesgo_arl) + (salario >= 10 * smmlv ? 0.135 : 0)) + (tipo_contrato == "integral" ? 0 : (salario + auxilio) * (2 / 12 + 0.01)) + salario * 15 / 360 - Net pay
salario_neto = salario + auxilio - salud - pension - solidaridad - arl - retencion
Each formula reads what the earlier ones produced, by its name. The fields arrive with an example filled in: put your own numbers in and run it again.
What if the calculation were yours?
This calculator is not hand-written: it is an Axioma method, formulas that run one after another. Open it to see every step, adapt it to your case or run it for a whole payroll from a spreadsheet.
What reaches the bank account on a 3 million salary
On an employment contract with a salary of 3,000,000 pesos, the contribution base is the whole salary. 120,000 pesos go to health and 120,000 to pension, 4 % each, and since 3 million is below two minimum wages —3,501,810 pesos in 2026— the transport allowance of 249,095 pesos is added.
Net pay comes to 3,009,095 pesos: more than the salary, because the allowance outweighs the deductions. Nothing is withheld: after contributions and the 25 % exemption the base is 39.5 UVT, and the table only starts above 95. For the company the contract costs 4,443,762 pesos a month with benefits and contributions.
All-inclusive salaries and services contracts
An all-inclusive salary, which in 2026 cannot be below 13 minimum wages (22,761,765 pesos), already includes the statutory benefits, so contributions are worked out on 70 % of it and there is no separate bonus or severance. On 25 million the base is 17.5 million, contributions add up to 1,575,000 pesos with the Solidarity Fund, and withholding reaches 3,984,200.
A contractor on a services contract gets no allowance or benefits and pays their own contributions on 40 % of the fees: 12.5 % to health, 16 % to pension and occupational risk for their class. On 5 million in fees the base is 2 million, contributions come to 580,440 pesos at risk class I, and 4,419,560 remain.
When the Solidarity Fund and withholding kick in
From a base of 4 minimum wages, 7,003,620 pesos in 2026, an extra 1 % goes to the Pension Solidarity Fund, rising in brackets up to 2 % above 20 minimum wages. On a salary of 8 million that is 80,000 pesos a month, on top of the 640,000 for health and pension.
Withholding is worked out on income minus mandatory contributions and minus a 25 % exemption, capped at 790 UVT a year. If that base exceeds 95 UVT, 19 % of the excess is withheld, and the rate rises in brackets up to 39 %. On 8 million the base is 104.25 UVT, withholding is 92,049 pesos and net pay 7,187,951.
What this calculation leaves out
Withholding follows procedure 1 with no further deductions: dependants, private health plans, mortgage interest and voluntary pension or AFC savings lower it, and they are not subtracted here. Nor are loans, payroll deductions, garnishments or union dues, which depend on each payroll.
The employer cost assumes a company exempt from health, ICBF and SENA contributions for staff earning under 10 minimum wages, as almost every company is, and leaves out work clothing. The 2026 figures are fields that can be changed when the next year’s arrive.
Frequently asked questions
- How much is deducted for health and pension in Colombia?
- An employee pays 4 % of the salary to health and 4 % to pension, while the employer adds 12 % for pension and, from 10 minimum wages, 8.5 % for health. On an all-inclusive salary the percentages apply to 70 % of it.
- Who gets the transport allowance in 2026?
- Anyone on an employment contract earning up to two minimum wages, 3,501,810 pesos in 2026. It is 249,095 pesos a month that are not salary, so no contributions are paid on it, but it does count towards the service bonus and severance pay.
- How much does a contractor pay in contributions?
- On 40 % of what they bill each month, and never on less than one minimum wage, they pay 12.5 % to health, 16 % to pension and occupational risk for their class, 0.522 % at class I. Altogether, about 11.6 % of the fees.
- From what salary is income tax withheld?
- It depends on contributions and deductions, but with none beyond the mandatory ones an employee starts having tax withheld at a salary of about 7.3 million pesos in 2026: below that, the base after contributions and the 25 % exemption stays under 95 UVT.