Colombia Labor Reform 2026: Complete Guide to Changes and Employer Obligations

Reviewed by Santiago Arroyave, Director of Legal Area at Nexo Legal. Corporate & Financial Law Expert | Global Client Relations | Legal Strategist.

Quick answer: Colombia labor reform 2026 — mainly contained in Law 2466 of 2025 — brought changes that are already in force: a maximum 42-hour workweek, night shift premiums starting at 7:00 p.m. (previously 9:00 p.m.), a 90% Sunday/holiday surcharge, new paid leave categories, and a 4-year cumulative limit on fixed-term contracts before they automatically convert to indefinite-term. The legal monthly minimum wage (SMLMV) for 2026 is COP $1,750,905 and the transportation allowance is COP $249,095 (Decrees 1469 and 1470 of 2025). This guide walks through, phase by phase, what every employer with workers in Colombia needs to have in place in 2026.

Table of Contents

1. Colombia Labor Reform 2026: What Actually Changes
2. Before Hiring: Pre-Contractual Phase
3. Employment Start and the Written Contract
4. Work Clothing and Equipment
5. Wages and Social Benefits in 2026
6. Work Schedule, Surcharges and Rest Periods
7. Paid Leaves and Permits
8. Employment Termination
9. Final Settlement and Documentation
10. Frequently Asked Questions

Colombia Labor Reform 2026: What Actually Changes

Law 2466 of 2025 — the statute behind what most people simply call “the labor reform” — took effect on June 25, 2025, with several of its provisions phasing in through 2025 and 2026. It’s not an isolated rule: it amends the Colombian Labor Code (Código Sustantivo del Trabajo) on four fronts that directly change payroll and HR processes for any employer with workers in Colombia.

The core changes brought by the 2026 labor reform are:

• Reduced maximum workweek, down to 42 hours (see the work schedule section).
• Expanded night shift premium, now starting at 7:00 p.m. instead of 9:00 p.m., and a 90% Sunday/holiday surcharge.
• New paid leave categories that did not exist before the reform (medical appointment leave, school meeting leave, legal summons leave, bicycle commuter day, among others).
• 4-year cumulative limit on fixed-term contracts, after which they automatically convert to indefinite-term.

On top of this sit the usual annual adjustments — minimum wage and transportation allowance — which in 2026 saw an unusually steep increase, and which for that same reason are the figures most commonly cited out of date online. Before walking through each phase, it’s worth being explicit: if you’ve seen the 2026 SMLMV quoted at COP $1,423,500 somewhere, that’s the 2025 figure, not this year’s.

Before Hiring: Pre-Contractual Phase

Prior to employment commencement, employers must verify the worker’s identity, qualifications, and legal compliance. This phase wasn’t changed by the labor reform, but it remains the evidentiary foundation for everything that follows.

Essential checklist:

• Employee ID verification
• Background screening
• Personal and professional reference checks
• Affiliation certificates, if applicable (EPS, AFP, ARL, Family Compensation Fund)
• Pre-employment medical examination
• Contract type determination based on the role
• Legal disqualification verification
• Bank certification
• Position-specific credentials (professional license, diplomas, degree certificates)

Key recommendation: document everything. An organized personnel file reduces evidentiary risk in a Ministry of Labor inspection or a labor claim.

Employment Start and the Written Contract

Once a worker is selected, two obligations apply immediately.

Mandatory registrations

• EPS, AFP, ARL, and Family Compensation Fund enrollment.
• ARL coverage must be active before the worker’s first day — this is mandatory, with no exceptions.

Written employment contract

Every employment relationship must be documented in a written contract. Essential elements:

• Personal service provision by the worker.
• Subordination and dependence relationship.
• Probationary period: maximum 2 months for indefinite-term contracts; maximum 1/5 of the contract term for others.
• Position and responsibilities.
• Compensation structure.
• Work schedule and location.
• Termination grounds.

Fixed-term contracts: the new 4-year limit

One of the changes under Law 2466 of 2025 that’s least accounted for in practice is this: fixed-term contracts — counting the original term plus all renewals — are now subject to a 4-year cumulative limit, after which they automatically convert to indefinite-term. For contracts that were already in force before the law took effect, the count starts on June 25, 2025, which in practice means they can keep their fixed-term status until June 25, 2029. The Ministry of Labor addressed the practical application of this rule in Concept 6157 of 2026. This is a topic substantial enough to merit its own dedicated article — for now, flag it if your company has fixed-term contracts that have been renewed repeatedly over several years.

Work Clothing and Equipment

Article 230 of the Colombian Labor Code requires employers to provide, every four months, one pair of work shoes and one work clothing set.

Eligibility requirements:

• Employee earnings up to 2 legal monthly minimum wages. With the 2026 SMLMV at COP $1,750,905, that threshold equals COP $3,501,810.
• Employment tenure exceeding 3 months.

Best practices

• Provide clothing suited to the role’s actual functions, branded if applicable.
• Deliver in advance with a signed acknowledgment.
• Cash compensation substitution is prohibited — this benefit must be provided in kind, not paid out.

Wages and Social Benefits in 2026

2026 minimum wage

Wages cannot fall below the 2026 SMLMV: COP $1,750,905 (full-time), set by Decree 1469 of 2025 — a 23% increase over the 2025 minimum wage. The Consejo de Estado provisionally suspended this decree on February 12, 2026 over alleged flaws in the wage-setting negotiation process, but the government kept the value in force through Decree 0159 of 2026 while the case is decided on the merits. For payroll purposes, the figure to use remains COP $1,750,905. If any calculation, template, or source you’re working from shows COP $1,423,500, that’s the 2025 SMLMV — don’t use it for 2026.

Paid biweekly or monthly, as set out in the contract.

Transportation allowance

The 2026 transportation allowance is COP $249,095 (Decree 1470 of 2025), applicable to workers earning up to 2 minimum wages. It does not constitute salary. This figure also saw a significant adjustment from 2025 (when it was COP $200,000), so if your payroll is still calculating with last year’s number, this is the moment to fix it.

Service bonus (Prima de Servicios)

30 days’ pay annually, in two installments: by June 30 and by December 20. Does not constitute regular salary.

Severance pay (Cesantías)

One month’s salary per year of service, deposited into the worker’s severance fund. Upon termination, the proportional amount is paid out. Partial withdrawals are prohibited except for legally authorized purposes (housing, education, mortgage release, incapacity exceeding 180 days), and must always be made directly to the fund, with an employer’s letter.

Severance interest

12% annually, payable no later than January 31 of the following year.

Vacation benefits

15 business days per year worked, with a minimum 15-day advance notice before the leave period. Accumulation is permitted for up to 2 years, with a minimum 6-day annual enjoyment requirement, and up to half may be paid out in cash by written agreement. Vacation pay is calculated at the salary rate in effect when the leave begins. Employers must keep a mandatory record of each worker’s vacation accrual, use, termination, and payment.

Work Schedule, Surcharges and Rest Periods

The labor reform reduced the maximum legal workweek to 42 hours in 2026, the final step of the gradual reduction that began in 2023 (47 → 46 → 44 → 42 hours). This directly affects the divisor used to calculate overtime and surcharges in payroll — if your payroll software is still dividing by 44 or 48 hours, it’s calculating incorrectly. We cover the full detail of adjusting payroll to the 42-hour week, including the new divisor and settlement examples, in our dedicated guide to Colombia’s 2026 working hours.

The reform also expanded surcharges: the night shift premium now applies starting at 7:00 p.m. (previously 9:00 p.m.) through 6:00 a.m., and the Sunday and holiday surcharge increased to 90%. Both changes directly affect the cost of any operation running extended, night, or weekend shifts (retail, healthcare, manufacturing, call centers). The full calculation, including the IBC base the UGPP uses to audit these payments, is covered in our guide to 2026 night and Sunday surcharges.

Keep documented control of schedules, overtime, and authorizations in writing — it’s the evidence that protects you in any claim or audit.

Paid Leaves and Permits

These are paid absences that don’t affect the worker’s salary or benefits. The 2025-2026 labor reform expanded the catalog of paid leave well beyond the traditional categories (bereavement, domestic emergency, paternity/maternity), adding leave for medical appointments, school meetings, legal summons, and a day off every six months for bicycle commuters.

Each of these new leave categories has its own documentation requirements, duration, and eligibility conditions — the full detail on every new paid leave under the labor reform is covered in our dedicated guide to 2026 paid leaves.

Employment Termination

Common termination methods:

• Mutual agreement: signed termination agreement with a clear date.
• Term expiration (fixed-term contracts): 30-day advance written notice before expiration.
• Just cause: requires following a disciplinary process:
• Formal notice with charges (facts, evidence, possible sanctions).
• Hearing (minimum 5 days between notice and hearing).
• Decision letter per the internal work regulations, with an option to appeal.
• Without just cause: severance payment applies, unless the worker holds special protected status (maternity, health condition, pre-retirement, among others).

Final Settlement and Documentation

Upon termination, the employer must process the final benefits settlement — a non-waivable worker right — and provide:

• Employment certificate (Article 57, Labor Code): tenure, duties performed, and salary.
• Exit medical examination, within 5 days of termination. If the worker fails to appear, the responsibility for that omission falls on them.

Full compliance with labor regulations — including the reform — prevents sanctions, reduces litigation, and strengthens a sustainable organizational culture. A compliant employer protects its business and gets more out of its team.

Need to Bring Your Payroll and Contracts in Line with the 2026 Labor Reform?

Between the minimum wage, the transportation allowance, the 42-hour workweek, the new surcharges, and the 4-year limit on fixed-term contracts, 2026 brought more simultaneous changes than most HR teams have fully reflected in payroll and contract templates. Our legal team for companies operating in Colombia can review your current contracts, payroll policy, and actual exposure to these changes before they turn into a fine or a claim.

Frequently Asked Questions

What is the minimum wage in Colombia for 2026?
COP $1,750,905 per month (full-time), set by Decree 1469 of 2025. Despite a provisional suspension by the Consejo de Estado in February 2026, the value was kept in force through Decree 0159 of 2026.

What is the transportation allowance in Colombia for 2026?
COP $249,095, set by Decree 1470 of 2025, applicable to workers earning up to 2 minimum wages.

What changes under Colombia’s 2026 labor reform?
Law 2466 of 2025 reduced the maximum workweek to 42 hours, expanded the night shift premium (starting at 7:00 p.m.) and the Sunday/holiday surcharge (90%), created new paid leave categories, and capped fixed-term contracts at 4 cumulative years before automatic conversion to indefinite-term.

How many years can a fixed-term contract last in Colombia before becoming indefinite?
Up to 4 cumulative years, counting the original term plus all renewals, under Law 2466 of 2025. Contracts already in force before the reform count that limit starting June 25, 2025.

What time does the night shift premium start in 2026?
7:00 p.m. through 6:00 a.m., a change from the previous rule that counted it only from 9:00 p.m.

What is the maximum legal workweek in Colombia in 2026?
42 hours, the final step of the gradual reduction that began in 2023 under Law 2101 of 2021.

Sources: Provisional suspension of the decree setting the 2026 minimum wage — Holland & Knight | Decree 1469 of 2025 (SUIN Juriscol) | Decree 1470 of 2025 (Presidencia de la República) | Decree 0159 of 2026 (Presidencia de la República) | Law 2466 of 2025 | Colombian Labor Code (Código Sustantivo del Trabajo)

Published: January 2026 — Rewritten September 2026 — Nexo Legal