The Best Employer of Record Services in Colombia for US Tech Companies

2025-07-31 · Howdy.com Editorial Lab Howdy.com

Colombia's tech ecosystem is thriving. Cities like Bogotá and Medellín have become hubs for top-tier software engineers, AI specialists, and data scientists. For US companies, Colombia offers a large, time-zone-aligned talent pool. But managing local labor laws, payroll, and compliance requirements can be a challenge.

An Employer of Record (EOR) can simplify hiring. An EOR acts as the legal employer for your Colombian team, handling HR, payroll, and compliance so you don't have to set up a local entity. This guide compares top EOR services in Colombia and shows how Howdy.com provides a complete solution.

Why use an EOR in Colombia

Hiring directly requires navigating:

  • Compliance. Managing contracts, work hours, and terminations per Colombian law.
  • Mandatory benefits. Administering benefits like the 13th-month bonus (prima de servicios), severance (cesantías), and contributions to health (EPS) and pension (AFP) funds.
  • Payroll and taxes. Withholding and submitting all local taxes and social security.

Why Howdy.com is a better solution

  • Top-tier talent sourcing. We deliver the top 1% of Colombian engineers through strong, local recruiting networks in Bogotá and Medellín.
  • Rigorous technical vetting. All candidates complete a live coding interview led by senior engineers.
  • End-to-end operations. From sourcing to compliance and invoicing, we manage the full process.
  • Cultural alignment and retention. Our Working Style Matrix™ and in-region HR support drive a 98% retention rate.

Other Leading Standalone EOR Providers for Colombia

For companies that have already sourced their own talent and only require a third-party payroll and compliance service, these are leading options:

If you've already sourced your own candidates and only need payroll and compliance support, these standalone EOR services are solid choices:

  • Deel. A major global EOR platform with strong operational capabilities in Colombia.
  • Remote. Offers comprehensive EOR and contractor management services across LatAm.
  • Papaya Global. Provides payroll and EOR as part of a global workforce platform.
  • Oyster HR. Specializes in distributed hiring, including compliance in Colombia.
  • Velocity Global. Offers broad global expansion solutions, including EOR support.

Conclusion