Parafiscales, meaning "parafiscal contributions," are mandatory employer payments in Colombia that fund three semi-public institutions providing social services. These contributions are calculated as a percentage of total monthly payroll and must be paid alongside regular social security contributions.
The Three Parafiscal Entities
SENA (Servicio Nacional de Aprendizaje) receives 2% and provides vocational training and employment programs. ICBF (Instituto Colombiano de Bienestar Familiar) receives 3% and funds child welfare, daycare, and nutrition programs. Caja de Compensación Familiar receives 4% and provides subsidized healthcare, recreation, education, and housing benefits to employees and their families.
Exemptions
Since 2013, companies that pay income tax (renta) are exempt from SENA and ICBF contributions for employees earning up to 10 minimum wages. However, the Caja de Compensación contribution (4%) remains mandatory for all employers regardless of income tax status. These exemptions were designed to reduce labor costs and encourage formal employment.
EOR Relevance
An EOR in Colombia manages parafiscal contribution calculations, applies applicable exemptions, and ensures timely payment through the PILA (Planilla Integrada de Liquidación de Aportes) system. The EOR also enrolls employees with a Caja de Compensación so they can access subsidized services.