Colombia: Governments regulates the Temporary Decrease in Contributions to the General Pension System

Employers who benefited from making pension contributions at 3% in April and May 2020 must contribute the remaining 13% within a period of 36 months, that expires in May 2024; after this period, late payment interest will be charged.

Employers have the faculty to deduct from wages, salaries, social benefits, and any payment received for employment contract termination the percentage of contributions that correspond to the worker, without requiring any authorisation of this discount. In any case, employers must inform their workers of the deal made on their wages and social benefit payments.

The work history will be updated for the old-age benefit once the contributors pay the entire missing value of the Pension System’s contribution; therefore, the weeks cannot be considered for the old-age pension until the contribution is made.

Finally, Decree 376 has established that the Ministry of Health and Social Protection has until 1 June 2021 to make temporary modifications to the Integrated Payment Settlement Form (‘PILA’ in Spanish), so that employers and workers can make the corresponding payments.