Auxilio de transporte, meaning "transportation allowance" or "transportation subsidy," is a mandatory monthly payment that Colombian employers must provide to employees who earn up to two times the legal monthly minimum wage (SMLMV). The amount is set annually by the government.
How It Works
The auxilio de transporte is a fixed monthly amount (not a percentage of salary) that increases each year, typically in line with inflation. It is paid alongside regular salary but is not considered salary for most purposes. However, it is included in the calculation base for prima de servicios and cesantías, which increases those benefits slightly.
Exemptions
Employees earning more than two minimum wages are not entitled to the transportation allowance. Additionally, employers who provide their own transportation to the workplace are exempt from paying the allowance. Employees who work entirely from home (remote workers) have been a subject of debate, with recent guidance suggesting the allowance may not apply to fully remote arrangements.
EOR Relevance
An EOR in Colombia automatically applies the transportation allowance for eligible employees, includes it in the correct benefit calculations, and adjusts the amount when the government announces the new rate each January.