What is the Employee Termination and Unemployment Fund (Fondo de Solidaridad y Garantía - FOSYGA) in Colombia?

In Colombia, employee termination comes with specific protections and benefits designed to support workers during transitions. Key aspects include severance funds and unemployment subsidies:


Cesantías (Severance Fund):

  • Contribution: Employers are mandated to deposit 8.33% of an employee’s annual salary into a severance fund known as cesantías. This deposit must be made by February 14th of each year.
  • Access:Employees can access this fund for various purposes, including:
    • Unemployment: If the employee loses their job.
    • Home Purchase: To assist in buying a home.
    • Higher Education: To support educational expenses.


Unemployment Subsidy:

  • Eligibility: Employees who have been terminated without cause may be eligible for a subsidy from FOSYGA, a government fund dedicated to providing support to unemployed workers.
  • Purpose: This subsidy helps bridge the gap between employment and new job opportunities, offering financial assistance during periods of unemployment.


In summary, the FOSYGA system in Colombia offers robust support for employees facing job loss, ensuring financial stability through severance funds and unemployment subsidies.

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