The Colombian Ministry of Health and Social Protection recently issued Decree 1273 of 2018, regulating the payment of contributions to the General Social Security System (GSSS) of independent contractors.
Contributions to the General Social Security System for Independent Contractors in Colombia
The payments of the GSSS contributions of independent contractors must be made on a monthly basis, through the Integrated Contribution Payment Form (PILA) and considering the contractor’s income obtained during the previous month.
The Decree also provides that any contractor who receives a monthly income equal to or greater than one (1) legal monthly minimum wage must contribute to the GSSS on a minimum salary base of forty percent (40%) of his/her monthly income, and the payment must be made on an expired-month basis.
If the contracting company fails to withhold and pay to the GSSS the contributions of independent contractors, it may be required to pay with its own funds the contributions that were not withheld, or were improperly withheld, in addition to any moratorium interests accrued thereof.
According to the new regulation, independent contractors are no longer obliged to deliver to the contracting company the support of the contributions paid to the GSSS as a condition for the contracting entity to pay his/her fees, and the contracting company is no longer required to request such support.
According to Decree 1273, as of June, 2019, the contracting entity that hires an independent contractor for any purpose will be required to withhold and pay directly to the GSSS the contributions of the independent contractor.
The Ministry of Health and Social Protection will adjust the PILA forms accordingly.