Colombia Employment Final Settlement Calculator
Colombia · EmploymentEstimate what you're owed when your employment contract ends in Colombia: severance pay, interest on severance pay, service bonus, vacation, and pending salary. This is a rough estimate for employment contracts; a services contract doesn't automatically generate these benefits.
Were you dismissed without just cause? The settlement doesn't include compensation. Calculate the dismissal compensation →
How is it calculated?
Severance pay = base × days worked ÷ 360. Interest on severance pay = severance pay × days × 12% ÷ 360. Service bonus = base × days of the semester ÷ 360. Vacation = salary × days worked ÷ 720 (minus days already taken). The base for severance pay and the service bonus is the salary plus the transportation allowance when it applies (up to 2 SMLMV); vacation is calculated only on the salary. Days are counted on a 360-day basis (360-day year, 30-day months). The current year's severance pay is counted from January 1 (or from the hire date, if later) and the service bonus from the start of the semester. This settlement doesn't include compensation for dismissal without just cause.
Examples
Salary of 2,000,000, contract from July 1, 2025 to June 30, 2026
With the transportation allowance in the base (2,249,095): severance pay 1,124,548, interest 67,473, service bonus 1,124,548, and vacation 1,000,000. Estimated total: 3,316,569.
Salary of 5,000,000 (no allowance), three years, with 15 vacation days already taken
Severance pay 5,000,000, interest 600,000, semester service bonus 2,500,000, and pending vacation 5,000,000. Estimated total: 13,100,000.
What an employment contract's settlement includes
The current year's severance pay is counted from January 1 (or your hire date) and the service bonus from the start of the semester. Previous years' severance pay should have already been deposited into your fund.
| Item | Base | How it's calculated |
|---|---|---|
| Severance pay | Salary + transportation allowance | Base × days ÷ 360 |
| Interest on severance pay | Severance pay | Severance pay × days × 12% ÷ 360 |
| Service bonus | Salary + transportation allowance | Base × days of the semester ÷ 360 |
| Vacation | Salary only | Salary × days worked ÷ 720, minus days taken |
| Pending salary | Salary | Unpaid days × salary ÷ 30 |
Settlement and compensation are different
The settlement is paid on any termination. If you were also dismissed without just cause, additional compensation may apply: calculate it with the dismissal compensation calculator. Each benefit has its own detail in severance pay, service bonus, and vacation.
Sources
- Colombian Substantive Labor Code — severance pay, service bonus, vacation, and compensation — in effect since January 1951 · reviewed on September 24, 2026
- Colombian Ministry of Justice and Law / LegalApp — social benefits, final settlement, and dismissal — in effect since January 2020 · reviewed on September 24, 2026
- Colombian Presidency / Ministry of Labor — Decree 0159 of 2026 (current legal monthly minimum wage, transitional setting) — in effect since January 2026 · reviewed on September 24, 2026
- Colombian Ministry of Labor — Decree 1470 of 2025 (2026 transportation allowance) — in effect since January 2026 · reviewed on September 24, 2026