What is a Caja de Compensación in Colombia?

A Caja de Compensación is a government-regulated, private social benefits institution that all formal employers in Colombia must affiliate with on behalf of their employees.

  • Employers contribute 4% of each employee’s monthly salary to the assigned Caja.

  • Employees (and their immediate family members) gain access to a wide range of social welfare services, including:

    • Family subsidies

    • Childcare and educational support

    • Housing and rental assistance

    • Recreational programs

    • Vocational training and employment services

This contribution is fully paid by the employer and does not affect the employee’s net salary.


How Does Caja Affiliation Work?

Caja affiliation is determined primarily by the geographic location of the employer or employee:

  • Most companies affiliate with one Caja per region based on where they operate.

  • Employees are then registered under that Caja, typically based on their residence or the company’s location.

  • For remote teams or companies with staff in multiple cities, different employees may need to be affiliated with different Cajas.

Tip for Horizons Clients: Always confirm the appropriate Caja for each employee during onboarding. Horizons will ensure correct affiliation based on local regulations and residence.


Bogotá and Surrounding Areas: Compensar

In Bogotá and nearby municipalities, the standard Caja de Compensación is Compensar. It is one of Colombia’s most comprehensive and well-regarded Cajas, offering:

  • Family and childcare subsidies

  • Educational support, including school kits, daycare access, and scholarships

  • Housing assistance for buying or renting homes

  • Recreational activities, including sports clubs, theaters, and cultural events

  • Training and employment services for both employees and their family members

All employees hired through Horizons in Bogotá and surrounding areas are registered with Compensar, unless otherwise required by local circumstances.


Important Notes for Clients and Employees

  • Employees cannot choose their Caja. It is assigned based on the employer's registration and operational region.

  • Proper registration is critical to avoid delays or benefit disruptions.

  • Caja benefits are in addition to health insurance (EPS) and occupational risk insurance (ARL).

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