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Colombia
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Colombia Payroll & HR Glossary
- Prestaciones sociales
- Payments on top of salary that the law requires: prima, cesantías, interest on cesantías and vacation.
- Prima de servicios
- A benefit equal to one month of salary per year, paid in two instalments: June and December.
- Cesantías
- A benefit of one month of salary per year deposited in a fund, as savings against unemployment.
- Retención en la fuente
- The advance payment of income tax that the employer deducts from salary and transfers to the DIAN (the tax authority).
- Salario mínimo
- The Salario Mínimo Mensual Legal Vigente (SMMLV), the lowest pay allowed, set each year.
- UVT
- The Unidad de Valor Tributario (tax value unit), a reference updated every year to standardize tax amounts.
- Aportes a seguridad social
- The worker's deductions for health (4%) and pension (4%), complemented by employer contributions.
- Liquidación
- The final payment when the contract ends: accrued benefits, vacation and pending salary.
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