Health insurance — employee

Colombia's health insurance requirement mandates that all employees must be enrolled in the Colombian health system (Sistema General de Seguridad Social en Salud, SGSSS). Employers are legally obligated to register and maintain active health insurance coverage for every worker, regardless of employment type or contract duration.

The health insurance contribution is calculated as a percentage of the employee's monthly salary. The employer contributes 8.5 percent of gross wages, while the employee contributes 4 percent. These contributions fund access to preventive care, medical consultations, hospitalization, and pharmaceutical services through one of Colombia's authorized health insurance providers (Entidades Promotoras de Salud, EPS).

This requirement is governed by Law 100 of 1993, which established the Colombian social security system, and is enforced by the Ministry of Labor and the Superintendence of Health (Superintendencia Nacional de Salud). The system applies uniformly across all economic sectors and employment categories.

Employers must register employees with the health system within the first month of employment and maintain continuous contributions throughout the employment relationship. Failure to enroll workers or remit contributions exposes employers to significant penalties, administrative sanctions, and potential legal liability. Payroll teams must ensure accurate calculation of health insurance deductions, timely submission of contributions to the selected EPS, and proper documentation of enrollment for all staff members. Non-compliance can result in fines ranging from multiple minimum monthly wages and suspension of business operations.