An Employer of Record (EOR) is a local legal entity that hires a worker on your behalf. The EOR is the patrono under Colombian law; it runs payroll, files PILA, pays statutory benefits, and handles compliance. You pay the EOR an invoice each month and instruct the worker on day-to-day responsibilities.
What does an EOR cost in Colombia?
Typical public pricing in 2026:
- Multiplier: ~USD 400/worker/month
- Oyster: ~USD 499/worker/month
- Deel: ~USD 599/worker/month
- Remote: ~USD 599/worker/month
On top of the EOR fee, you pay the worker's salary plus all Colombian statutory costs (~50-60% on top of salary depending on Law 1607 exoneration). The EOR usually handles a 13th-month payment and severance accruals invisibly inside their monthly invoice.
When does an EOR make sense?
- You have 1-15 workers in Colombia and no Colombian entity.
- You need to onboard in 2-5 business days, not in 8-16 weeks (entity setup).
- The role has clear subordinación indicators (fixed hours, reports to manager, core to business) — using a contractor would be reclassification-prone.
- You want a clean exit: terminate the EOR contract and the EOR handles severance per Colombian law.
When does an EOR NOT make sense?
- You have 20+ workers in Colombia long-term — the per-seat EOR fee compounds, and at that scale a Colombian SAS becomes cheaper.
- You need full control over Colombian operations (real estate, equipment, customer contracts in CO).
- Workers are clearly independent (multiple clients, project-based, no subordinación) — a contractor relationship is the right primitive.
Pick a provider
Use the Decision Tool. Based on your country of incorporation, salary, role type, and entity status, it proposes a primary EOR and three alternatives — labelled by fit (cheapest, fastest setup, best for enterprise), not by commission.
This page offers general guidance based on public information valid as of 2026-05-23. It does not constitute legal, tax, or labor advice. Hiring decisions should be validated with a Colombian labor attorney or accountant before execution. NominaCheck is not a party to any resulting contractual relationship.
This page may contain affiliate links. We may receive a commission at no extra cost to you. Provider order is based on fit, not on payout.
