How take-home pay works in Colombia
If you are a salaried employee in Colombia, your gross wage is reduced by a few mandatory deductions before it reaches your bank account. The two fixed ones fund social security: health (4% paid by the worker) and pension (4% paid by the worker), for a combined 8% of your contribution base, known locally as the IBC. On top of that, higher earners pay withholding tax (retención en la fuente) — a monthly advance on income tax that the employer subtracts using a table based on the UVT, Colombia’s inflation-indexed tax unit.
Working in your favor is the transport allowance (auxilio de transporte): if your salary is 2 minimum wages or less, the company adds it to your pay. In 2026 it is COP 249,095 per month, and it is not part of the base used for health and pension contributions.
This calculator turns gross into net using verified 2026 figures. Everything runs in your browser — your salary is never stored or sent anywhere.
The 2026 figures the tool uses
| Item | 2026 value |
|---|---|
| Minimum wage (SMMLV) | COP 1,750,905 |
| Transport allowance | COP 249,095 |
| Cap to qualify for the allowance | 2 SMMLV = COP 3,501,810 |
| Health contribution (employee) | 4% of the IBC |
| Pension contribution (employee) | 4% of the IBC |
| UVT (tax unit) | COP 52,374 |
| Minimum withholding base | 95 UVT = COP 4,975,530 (cleaned) |
Note that the 2026 minimum wage is set by Decree 0159 of 2026 on a transitional basis while the Council of State rules on a pending challenge — worth rechecking if a final decision changes it.
How the calculation works, step by step
- Health and pension: 4% + 4% of the IBC (your salary, excluding the allowance), with an IBC floor of 1 minimum wage and a ceiling of 25.
- Withholding tax: mandatory contributions and the automatic 25% labor exemption are subtracted from the salary to get the cleaned taxable base. That base is divided by the UVT and run through the article 383 table. Withholding only appears once the base passes 95 UVT.
- Transport allowance: added to the net figure when gross pay is 2 minimum wages or less.
Worked example
Case 1 — minimum wage (COP 1,750,905):
- Health: 1,750,905 × 4% = COP 70,036
- Pension: 1,750,905 × 4% = COP 70,036
- No withholding (base too low) and the transport allowance applies: +COP 249,095
- Take-home pay: COP 1,859,928
Case 2 — a COP 8,000,000 salary:
- Health: COP 320,000 · Pension: COP 320,000
- Subtotal after contributions: 7,360,000; 25% exemption: 1,840,000; taxable base: 5,520,000
- Base in UVT: 5,520,000 ÷ 52,374 = 105.40 UVT; withholding: (105.40 − 95) × 19% × UVT = COP 103,449
- No allowance (above 2 minimum wages)
- Take-home pay: COP 7,256,551
Frequently asked questions
At what salary does withholding start?
With only the minimum depuration (contributions plus the 25% exemption), withholding typically begins around COP 7,200,000 in gross monthly pay. The 95-UVT threshold is measured on the cleaned base, not on gross, so most people earning under 7 million pay none.
Does the allowance count toward pension and severance?
It is excluded from the health and pension base. It is, however, included in the base for severance (cesantías) and the service bonus (prima) when you earn 2 minimum wages or less. This tool computes monthly net pay; use a settlement calculator for those benefits.
Why is my real withholding different?
Because it depends on your personal deductions: dependents, mortgage interest, prepaid health or voluntary pension all lower the base and therefore the tax. This calculator applies only the automatic 25% exemption, so its figure tends to be an upper bound.
Does it include the Pension Solidarity Fund?
No. The FSP is an extra worker contribution from 4 minimum wages (COP 7,003,620) that runs from 1% to 2%. If you earn above that threshold, subtract it separately from this net figure.
This tool is an informational estimate based on the rules in force in 2026; your exact withholding is set by DIAN and your employer according to your personal deductions. Verify it and consult a professional, and review the tool each year, since the UVT, minimum wage and allowance all change in January.