What is the Severance Fund in Colombia?



Modified on: Mon, 5 Jan, 2026 at 5:25 PM

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


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.

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