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Calculate contractor social security contributions

Calculate health, pension and ARL contributions for independent services contracts in Colombia, based on 40% IBC.

Independent contractor calculator

Summary of rates and contributions (2026)

  • IBC (Base de cotización): 40% del contrato bruto mensual. No puede ser inferior a 1 SMMLV ($1.751 millones).
  • Salud: 12.5% del IBC.
  • Pensión: 16.0% del IBC.
  • ARL (Riesgos Laborales): Desde 0.522% (Clase I) hasta 6.960% (Clase V) según la actividad económica realizada.

This calculator estimates contributions based on standard rules (Ley 100, Decreto 1273/2018). Actual net pay may also depend on withholding taxes (retefuente / reteICA) applied by your client. Not financial or tax advice.

FAQ

How is the IBC calculated for an independent contractor?

The Contribution Base Income (IBC) is 40% of the total monthly contract fee. This value has a floor of 1 minimum wage (SMMLV) and a ceiling of 25 SMMLV.

What percentages does a contractor pay for social security?

Contributions are 12.5% of IBC for health, 16% of IBC for pension, and ARL depending on the risk class (Class I is 0.522% up to Class V which is 6.960%). All these contributions are 100% paid by the contractor.

Who must pay the contractor's ARL?

Generally, the independent contractor is responsible for paying their own ARL. However, if the contract involves Risk Class IV or V (high risk), the client is legally obligated to register and pay the ARL directly.

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