ARL stands for Administradora de Riesgos Laborales, meaning "Occupational Risk Administrator." It is Colombia's mandatory workplace injury and occupational disease insurance system. Every employer must enroll their employees with an ARL and pay 100% of the contributions — employees do not contribute to this coverage.
Risk Classification
Colombian employers are classified into five risk levels based on their economic activity. Level I (minimum risk, such as office work) has a contribution rate of 0.522% of payroll. Level V (maximum risk, such as mining or construction) can reach 6.960%. Most office-based and technology companies fall into Level I or II.
Benefits Provided
ARL coverage includes medical treatment for work-related injuries and illnesses, temporary disability payments (up to 180 days at 100% salary), permanent disability pensions, survivor pensions in case of work-related death, and rehabilitation services. ARL providers also offer occupational health and safety programs and workplace inspections.
EOR Relevance
An EOR in Colombia selects and manages ARL enrollment, determines the correct risk classification, and handles monthly contribution payments. The EOR also manages workplace accident reporting, which must be filed with the ARL within 2 business days of the incident.