La liquidación laboral es el pago que debe recibir un trabajador cuando finaliza su contrato. Este monto incluye las prestaciones sociales acumuladas durante el tiempo trabajado. Es un derecho fundamental que garantiza una compensación justa por el tiempo y esfuerzo invertido.

What does the settlement in Colombia include?

In Colombia, severance pay generally includes:

•  Severance pay: Equivalent to one month’s salary for each year worked.
•  Interest on severance pay: 12% per annum on the accumulated value.
•  Service bonus: It is paid twice a year and is equivalent to 8.33% of the salary.
•  Vacation: 15 working days for each year worked, paid proportionally.
•  Outstanding salary: Unpaid days worked from the last month.
•  Compensation (if applicable): In case of dismissal without just cause.

How is severance pay calculated?

The calculation depends on the type of contract, base salary, and days worked. To simplify this process, we created an easy and free tool:

 Use the severance calculator to find out how much you are entitled to.

Concepts Included in the Settlement

A complete severance package should include the following items:

Practical example

Let’s assume you earn $2,000,000 per month and worked 180 days under an indefinite-term contract:

• Severance pay: $1,000,000
• Bonus: $1,000,000
• Vacation: $500,000
• Total to be received: $2,500,000 (excluding interest and compensation)

When is the settlement due?

By law, the employer has a maximum of 15 business days after the termination of the contract to pay the severance. Failure to do so may result in penalties for late payment.

Frequently Asked Questions (FAQ)

What is the formula for calculating the settlement?

The basic formula is:

Do I get severance pay if I resign?

Yes. Even if you resign, the employer must pay all benefits accrued up to your last day of work. Only severance pay is not applicable in this case.

Does the settlement include interest?

Yes. Interest on severance pay (12% per annum) must be included if the contract is for an indefinite term.

Conclusion

Understanding severance pay calculations is key to ensuring you receive what you’re entitled to. Whether you’re laid off, resign, or your contract ends, you’re entitled to your benefits .