Paid family leave tax

Colombia's paid family leave tax is a mandatory employer contribution that finances parental and family care benefits under the social security system. The current contribution rate is 0.3% of an employee's monthly salary, calculated on the base wage subject to social contributions.

This tax covers statutory leave entitlements for childbirth, adoption, and childcare responsibilities. Eligible employees receive paid time off for maternity leave (18 weeks for mothers), paternity leave (8 weeks for fathers), and parental leave for childcare purposes. The tax ensures these benefits are funded through employer payroll deductions rather than direct government appropriation.

The rule is governed by Law 1468 of 2011 and regulated by the Colombian Ministry of Labor and the Colombian Institute of Family Welfare (Instituto Colombiano de Bienestar Familiar, ICBF). The contribution is administered through the social security system and collected alongside other mandatory payroll taxes.

Colombia implemented significant reforms to parental leave in 2023, expanding paternity leave from 8 to 16 weeks for biological fathers and introducing new protections for same-sex couples and adoptive parents. These changes took effect on June 1, 2023, and adjusted the scope of benefits financed by the family leave tax.

Employers must calculate and withhold the 0.3% contribution from employee salaries each pay period and remit it to the designated social security administrator. Payroll teams should ensure accurate wage classification, as only earnings subject to social contributions count toward the tax base. Compliance requires proper documentation of leave taken and timely benefit processing through authorized institutions.