How to Enroll in ARL as an Independent Contractor for Service Provision Contracts

Starting a service provision contract in Colombia means taking direct responsibility for managing your social security contributions. Among the essential procedures to begin work without legal setbacks or protection gaps, enrolling in a Labor Risk Administrator (ARL) is a top priority.

Many independent professionals are unaware of the activation timelines for coverage, the exact rate corresponding to their activity, or the legal rule that defines when the contracting company must assume payment. In this guide, we explain how to correctly enroll in an ARL, calculate your monthly contribution, and enter the information without errors.

Is ARL enrollment mandatory under a service provision contract?

In accordance with Law 1562 of 2012 and Decree 1072 of 2015, enrollment in the General System of Labor Risks is mandatory for all independent workers who formalize a service provision contract lasting longer than one month. This requirement applies regardless of whether you perform your duties in person or remotely.

For contracts lasting less than 30 days, enrollment is optional, unless you perform activities classified as high risk (Levels IV and V). In that scenario, enrollment and payment are mandatory from the first day of execution. Keeping your ARL contributions up to date protects you in the event of work-related accidents or occupational diseases, complementing the health coverage you receive from your EPS and guaranteeing access to economic benefits and social security disability payments.

Who pays for ARL? Risk level table and rates

One of the most frequent questions when signing a contract is determining which party is responsible for financing the ARL contribution. The technical regulation divides work activities into five risk levels and imposes clear responsibilities for both the contractor and the contracting company:

When your work is classified under Risks I, II, or III, you must pay the full rate via your PILA form. However, if your contract involves Risk IV or Risk V activities, Decree 723 of 2013 mandates that the contracting company directly handles the enrollment and pays 100% of the ARL contribution.

How to calculate the Contribution Base Income (IBC) and the contribution amount

The Contribution Base Income (IBC) for independent workers under a service provision contract equals 40% of the gross monthly contract value, excluding Value Added Tax (VAT) when applicable.

Colombian legislation states that the calculated IBC cannot be lower than 1 Legal Monthly Minimum Wage (SMMLV) nor higher than 25 SMMLV. To calculate your monthly rate, apply the following practical formula:

• Step 1: Determine the monthly fees before VAT.
• Step 2: Multiply that value by 0.40 to obtain the IBC. If the result is lower than 1 SMMLV, adjust your IBC exactly to the current minimum wage.
• Step 3: Multiply the IBC by the percentage rate of your risk level (for example, 0.522% for Risk I).

For example, for a contract with monthly fees of $4,000,000 COP, 40% equals $1,600,000 COP. Since this figure is lower than 1 SMMLV, the IBC is automatically readjusted to 1 SMMLV. Applying the Risk I rate (0.522%), the amount to pay for ARL will be approximately $9,140 COP per month.

Step-by-step guide to enrolling in an ARL as an independent worker

Submitting the enrollment application is a quick and digital process. You can freely choose your administrator (such as Positiva, Sura, AXA Colpatria, Seguros Bolívar, or Colmena), unless you are already previously enrolled in one of them as an independent worker.

1. Gather the documentation: Copy of your identity document, copy of the signed service provision contract, and certificate of active enrollment in the EPS and pension fund.
2. Go to the website of your chosen ARL: Select the option "Independent Enrollment by Service Provision Contract."
3. Fill in the contract details: Register the contractor's company name or tax ID (NIT), contract start and end dates, monthly fee amount, and the applicable economic activity code.
4. Assign the risk class: Select the risk according to the legal matrix corresponding to the tasks described in the contract object.
5. Generate and save the certificate: Download the enrollment certification with the exact date and time of registration.

When managing professional contracts and projects, documentary clarity is key to avoiding conflicts with clients and oversight entities. Just as you must keep up to date with regulatory aspects like electronic invoicing with the DIAN or the review of the ICA tax payment for independent workers, having your ARL support allows you to execute your contracts with full legal backing.

Effective coverage and payment in arrears via the PILA form

A critical legal detail for every contractor is the exact moment when protection against work accidents becomes effective. According to the Ministry of Labor, ARL coverage begins at 00:00 hours on the calendar day following successful registration. For this reason, the procedure must be completed at least 24 hours before starting work at the job site.

Regarding payment, Decree 1273 of 2018 established that social security contributions for independent workers are made in arrears (mes vencido). This means that during the first few days of each month, you will pay the contributions corresponding to services provided in the immediately preceding month.

To make the contribution, use authorized Planilla Integrada de Liquidación de Aportes (PILA) operators such as MiPlanilla, Aportes en Línea, Simple, SOI, or Asopagos. When generating the type I form (Independent workers), you must register the entry update (ING) in the first period to correctly link your contribution to the corresponding ARL.

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Frequently Asked Questions

❓ Is it mandatory to pay ARL if I am already contributing to Health (EPS) and Pension?

Yes, under Decree 1072 of 2015 (in effect in 2026) you must affiliate with the ARL if your service provision contract lasts more than one month. The contribution is calculated along with EPS and pension; being up to date with those two is not enough.

❓ Who must pay the ARL contribution in a service provision contract?

The contractor pays 100% for Risks I, II, and III; the hiring party pays 100% for Risks IV and V. This is mandated by Decree 723 of 2013 and Decree 1072 of 2015, which are in effect in 2026.

❓ When does ARL coverage start after completing the affiliation process?

Coverage begins at 00:00 hours on the calendar day following the filing, according to the Ministry of Labor (consulted in August 2026). That is why it is advisable to affiliate at least 24 hours before starting work.

❓ How is the Contribution Base Income (IBC) calculated for a contractor's ARL?

The IBC is equivalent to 40% of the gross monthly value of the contract excluding VAT, with a floor of 1 SMMLV and a ceiling of 25 SMMLV. The formula comes from Decree 1273 of 2018 and the UGPP rules, in effect in 2026.

❓ What happens if my service provision contract lasts less than a month?

Affiliation is voluntary if the contract lasts less than 30 days, except for Risk IV or V. In cases of high risk, affiliation and payment remain mandatory from the first day (Decree 1072 of 2015, in effect in 2026).

❓ Which PILA operator should I use to pay for ARL as an independent worker?

Payment is made in arrears using the type I form through authorized operators such as MiPlanilla, Aportes en Línea, Simple, SOI, or Asopagos. Choose one and register the ING update for the first period.