How much severance pay (cesantías) am I owed?

In general terms, one month's salary per year worked, or the proportional share. With the calculator, enter your salary and dates to see the estimated figure, with and without the transportation allowance.

How is the interest on cesantías calculated?

It's 12% annual on the cesantías, prorated by days: cesantías × days × 12% ÷ 360. It's paid directly to the employee, no later than January 31.

Does severance pay include the transportation allowance?

Yes, when it applies to you: it's part of the cesantías base even though it isn't salary for other purposes.

Where is severance pay deposited and by when?

Into the severance fund you've chosen, no later than February 14 of each year. If the employer doesn't deposit it on time, they may owe a penalty of one day's salary for each day of delay.

How much severance pay am I owed if I only worked six months of the year?

Half a month's salary (with the base including the allowance): enter your hire date and cutoff date and the calculator counts only the days worked.

What happens to severance pay if my salary is variable?

The calculator assumes a fixed salary. With a variable salary, the base is the average of what you earned over the last year, so the real value may differ.

Colombia Severance Pay (Cesantías) Calculator

Colombia · Employment

Calculate how much severance pay (cesantías) and interest on severance pay you've accrued this year, based on your salary, the transportation allowance, and days worked. Useful for estimating what your employer must deposit into your severance fund.

How is it calculated?

Cesantías = base × days worked ÷ 360. Interest on cesantías = cesantías × days × 12% ÷ 360. The base is your monthly salary plus the transportation allowance when it applies to you (up to 2 SMLMV). Days are counted on a 360-day basis, from January 1 of the cutoff date's year (or from your hire date, if later). In general terms it equals one month's salary per year worked, or the proportional share if you worked less time. The employer deposits it into the severance fund, and the interest (12% annual) is paid directly to the employee. This is an estimate for a fixed salary: if your salary is variable, the base is calculated using the average.

Examples

Salary of 2,000,000, all of 2026 (transportation allowance included)
Base of 2,249,095 over 360 days: cesantías 2,249,095 and interest 269,891. Total: 2,518,986.
Salary of 4,000,000 (no allowance), January 1 to June 30
180 days on a base of 4,000,000: cesantías 2,000,000 and interest 120,000. Total: 2,120,000.

How severance pay and its interest are calculated

Severance pay is one month's salary per year worked (base × days ÷ 360) and the interest is 12% annual on top of it. The base includes the transportation allowance when it applies to you.

Item	Paid to	Deadline
Severance pay (cesantías)	Your severance fund	February 14 of each year
Interest on cesantías	Directly to you	January 31 of each year

Severance pay and final settlement when the contract ends

If your contract ends, the current year's cesantías and their interest are paid in the final settlement, along with the service bonus and vacation. You can check the allowance included in the base with the transportation allowance calculator.

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 Ministry of Labor — Decree 1470 of 2025 (2026 transportation allowance) — in effect since January 2026 · 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

Frequently asked questions

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