Understanding Ordinario vs. Integral Salary in Colombia: What Employers and Workers Need to Know
In Colombia, salaries are categorized as either Ordinario (ordinary) or Integral. An Ordinario salary is the standard wage, where the employer must separately pay mandatory benefits such as health, pension, severance, and bonuses.
In contrast, an Integral salary is a higher, all-inclusive wage that bundles most legal benefits into a single payment, typically at least 13 times the monthly minimum wage. This option is usually reserved for high-earning employees.
Understanding the distinctions helps both employers and workers comply with labor laws and manage compensation effectively.
Key Objectives:
- What Do "Ordinario" and "Integral" Salary Mean in Colombia?
- What Is an Ordinario Salary?
- What Is an Integral Salary?
- Ordinario vs. Integral Salary Comparison Chart
- Real-World Implications for Employers
- FAQs About Ordinario and Integral Salaries in Colombia
- Choosing the Right Salary Structure for Your Workforce
What Do "Ordinario" and "Integral" Salary Mean in Colombia?
If you're expanding your business or managing remote workers in Colombia, it's essential to understand the country’s two main salary classifications: Ordinario salary and Integral salary. These aren't just payroll terms—they directly affect taxes, social security obligations, and employee benefits.
Colombia's labor framework mandates these salary structures to ensure fair treatment of workers while providing flexibility for employers based on employee income levels. Employers must not only understand the distinctions for legal compliance but also consider how these salary models impact recruitment, retention, and total compensation packages.
So what’s the difference between an Ordinario salary and an Integral salary in Colombia? And which is right for your organization or employment contract?
Let’s break it down in plain English.
What Is an Ordinario Salary?
An Ordinario salary (Ordinary salary) is the most common compensation structure in Colombia and applies to employees earning less than 13 times the monthly minimum wage. This structure is designed to ensure that lower- and mid-income employees receive legally mandated protections and contributions paid directly by the employer.
Key features of an Ordinario salary:
- Base monthly salary in accordance with employment contract and national minimums
- Overtime compensation, when applicable
- Mandatory employer-paid social security contributions, including health, pension, and occupational risk insurance
- 13th-month salary bonus, called prima de servicios, paid in two installments
- Vacation accrual and other labor law-mandated benefits
The prima de servicios is equivalent to one full month's salary for each year worked, split into two equal payments made by June 30 and December 20. These payments are legally required and protect employees from loss of income during non-peak work seasons.
This structure includes more employer obligations and benefits for the employee, especially for those who may not have high base salaries but rely on structured protections to maintain financial stability.
What Is an Integral Salary?
An Integral salary (translated as "Comprehensive salary") is a compensation model for high-income earners. Specifically, it applies to employees earning 13 times the Colombian monthly minimum wage or more.
Key features of an Integral salary:
- A higher gross salary that includes base pay plus benefits bundled into a single amount
- No separate payments for overtime, bonuses, or prima de servicios (13th-month salary)
- Employee pays their own social security contributions, which are deducted from their paycheck
- Often used for executives, senior managers, or foreign hires
This structure provides greater net salary flexibility and reduces administrative load for employers, but may result in reduced direct benefits or tax-shielding advantages for employees.
Ordinario vs. Integral Salary Comparison Chart
Real-World Implications for Employers
For HR leaders, understanding these salary distinctions is crucial to maintaining compliance and managing costs.
Benefits of offering Ordinario salaries:
- Attract and retain mid-level talent with full benefits
- Comply with labor standards for wider workforce coverage
- Strong appeal for local employees familiar with protections
Benefits of offering Integral salaries:
- Ideal for executive contracts or short-term assignments
- Reduces the complexity of payroll and HR benefits management
- Often preferred for foreign workers looking for a single, clear monthly figure
However, employers must also assess how changes in salary classification may affect employee morale. For example, moving an employee from Ordinario to Integral without adequate communication may feel like a reduction in protections even if the gross salary increases.
FAQs About Ordinario and Integral Salaries in Colombia
- What is the 13th-month salary or “prima de servicios”?
This is a mandatory bonus for employees under the Ordinario salary structure, equivalent to one month of salary per year, split into two payments—by June 30th and December 20th.
- Who decides which salary structure applies?
It’s typically determined by income threshold. Colombian labor law mandates Integral salary only for those earning 13x the minimum wage or more. Beyond that, it’s a mutual agreement between employer and employee.
- Do remote or international employees qualify for Integral salaries?
Yes, but only if their monthly income meets the legal threshold. Foreign companies should work with a local EOR or legal team to ensure contracts are compliant.
- What are the risks of misclassification?
Improper classification can result in back payments, penalties, or legal disputes. If you're unsure, consult with a Colombian labor lawyer or global employment expert.
- Can I convert an employee from Ordinario to Integral salary?
Yes, if the income increases above the minimum threshold. However, written employee consent and a new employment contract are generally required.
Choosing the Right Salary Structure for Your Workforce
Understanding the difference between Ordinario and Integral salary in Colombia is essential for legal compliance and employee satisfaction. Whether you're hiring on-the-ground talent in Bogotá or managing a remote team member in Medellín, being familiar with these salary structures ensures:
- Proper tax handling
- Timely benefit payments
- Trust with your workforce
Employers: Make sure your salary structure meets Colombian legal thresholds and your workers’ compensation expectations.
Employees: Know what’s included in your pay and what you’re responsible for, especially when comparing offers.
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