Colombia labor settlement: accrued benefits + indemnity
When an employment contract ends, this page adds cesantías (CST art. 249), 12% interest (Law 52 of 1975 and Law 50 of 1990 art. 99), semester prima de servicios (art. 306), vacation (art. 186: 15 consecutive working days per year), and unpaid wages. Article 64 indemnity, as amended by Law 789 of 2002, is included only if you pick unjust dismissal or a fixed term.
Independent contractors (prestación de servicios) are out of scope.
With wage COP 2,000,000, 360 year days, 180 semester days, allowance 0, and resignation, the total is COP 4,240,000 (cesantías 2,000,000 + interest 240,000 + prima 1,000,000 + vacation 1,000,000).
Not legal advice. The articles do not print “360” or “720”: we use the payroll commercial year and vacation = wage × days ÷ 720. SMMLV is not frozen; you pick the under / ≥ 10 minimum-wage band. Out of scope: the 10-year transitory table and social-security contributions.
Formulas (payroll convention)
Cesantías = (wage + allowance) × year days ÷ 360 Interest = cesantías × year days × 0.12 ÷ 360
Prima = (wage + allowance) × semester days ÷ 360 Vacation = wage × year days ÷ 720 (no allowance)
| Item | Default example |
|---|---|
| Wage / allowance / base | COP 2,000,000 / 0 / 2,000,000 |
| Cesantías + interest | COP 2,000,000 + COP 240,000 |
| Prima (180 days) | COP 1,000,000 |
| Vacation | COP 1,000,000 |
| Total (resignation) | COP 4,240,000 |
Art. 64 indemnity (Law 789/2002)
| Case | Days | On COP 2,000,000 |
|---|---|---|
| Resignation / just cause | 0 | COP 0 |
| Indefinite, 2 years, < 10 SMMLV | 30 + 20 = 50 | COP 3,333,333.33 |
| Indefinite, 2 years, ≥ 10 SMMLV | 20 + 15 = 35 | COP 2,333,333.33 |
| Fixed term, 10 days left | floor 15 | COP 1,000,000 |
| Fixed term, 40 days left | 40 | COP 2,666,666.67 |
The first unjust-dismissal year is a lump 30 or 20 days, not pro-rated. Educational daily wage = monthly ÷ 30.
Sources
- CST arts. 186, 249, 306, and 64 (SISJUR Decree 2663 of 1950). Art. 64 as per Law 789 of 2002, art. 28.
- Law 50 of 1990 art. 99 (12% interest, deposit before 15 February). Law 52 of 1975.
- SMMLV: annual decree (e.g. Decreto 159/2026 as a market hint); not an engine constant.
Last checked: 3 September 2026.
Proportional cesantías (art. 249), 12% interest, semester prima (art. 306), vacation (art. 186), unpaid wages, and art. 64 indemnity when it applies.
Payroll convention: cesantías and prima ÷360; vacation = wage × days ÷720 (no transport allowance). Defaults are a 360-day year and 180-day semester.
Unjust dismissal on an indefinite contract: Law 789/2002 table (30+20 or 20+15 days). Fixed term: remaining salaries, minimum 15 days. Resignation: zero.
In payroll practice, yes for cesantías and prima; not for vacation. Enter it yourself; the tool never looks up the minimum wage.
The minimum wage changes by annual decree. You pick the under / ≥ 10 SMMLV band. Decreto 159/2026 is not an engine constant.
No. Independent contractors are out of scope.
Budget tools (not the same benefit): monthly budget, monthly savings, and currency converter.