Employers pay family fund 4% + SENA 2% + ICBF 3% on salary (Law 21/1982 and Law 89/1988). Under 10 SMLMV ($17,509,050 in 2026), article 114-1 of the Tax Statute (added by Law 1819/2016 art. 65, which repealed, through its art. 376, Law 1607/2012 art. 25) exempts SENA and ICBF (with an eligible employer: a company, a legal entity filing income tax, or a natural person with two or more workers). The family fund is not exempt and a natural person with fewer than two workers pays 9%.
With $2,000,000 exempt: $80,000/mo ($960,000/year).
Formula
salary × (4% fund + 2% SENA + 3% ICBF); exempt = 4% only
Example — $2,000,000 exempt vs $20,000,000 non-exempt
| Item | Calculation | Value |
|---|---|---|
| Fund 4% on $2,000,000 | 2,000,000 × 0.04 | $80,000 |
| SENA + ICBF (exempt) | — | $0 |
| Exempt monthly total | — | $80,000 |
| $20,000,000 monthly total at 9% | 20,000,000 × 0.09 | $1,800,000 |
FAQ
When the worker earns less than 10 SMLMV ($17,509,050 in 2026) and the employer is eligible (a company, a legal entity filing income tax, or a natural person with 2+ workers): article 114-1 of the Tax Statute. At 10 SMLMV or more, or as a natural person with fewer than two workers, the full 9% is paid.
No. It is an employer cost, not a salary deduction. Worker contributions (health + pension) are separate.
Educational content, not legal advice. Law 21/1982 art. 7, Law 89/1988 art. 1 and article 114-1 of the Tax Statute (Law 1819/2016 art. 65; the repeal of Law 1607/2012 art. 25 is in art. 376).