When hiring employees in Colombia, it is important to understand the country's mandatory public health insurance system — EPS (Entidad Promotora de Salud). As part of the SGSSS (Sistema General de Seguridad Social en Salud), EPS ensures all formal workers have access to essential medical care and public health services.
1. What Is EPS?
EPS is Colombia's national health insurance, required by law for all formally employed individuals. It provides access to general and specialized medical care, medications, emergency treatment, and non-occupational sick leave management.
EPS is not a direct government-run healthcare provider; instead, it is administered by authorized private entities regulated by the government. Employees can choose from various recognized providers—such as SURA, Sanitas, or Compensar—while coverage and statutory pricing remain standardized nationwide.
2. Selection and Registration Process
The EPS provider is selected and registered during employee onboarding through the following workflow:
Employee Preference during Onboarding: During the onboarding phase, the employee receives an affiliation form from the local partner / HR team, allowing them to select their preferred EPS provider (e.g., SURA, Sanitas, Compensar).
Automatic Default Enrollment: If the employee does not specify or select a provider, a default EPS provider is automatically assigned to guarantee full coverage and legal compliance from their start date.
Affiliation & Contributions: The CPA facilitates the formal affiliation with the selected or default EPS. Statutory health contributions equal 12.5% of gross income, split between:
Employer Contribution: 8.5%
Employee Contribution: 4% (deducted via payroll)
3. What Remote People Clients Must Know
If you are employing workers in Colombia through Remote People, here is what you need to be aware of regarding EPS compliance:
Mandatory Enrollment: EPS enrollment is legally required for all employees starting on day one.
Default Coverage: If an employee does not express an EPS preference, Remote People (and our local partner) automatically assigns a default provider to avoid coverage delays or legal issues.
Shared Contributions: Remote People manages both the employer contribution (8.5%) and the payroll deduction for the employee portion (4%).
Full Process Handling: Remote People handles statutory registration, documentation submission, and payroll deductions end-to-end as part of our compliant hiring process in Colombia.
4. What Employees Must Know
As an employee in Colombia hired through Remote People, your EPS affiliation grants you access to comprehensive healthcare services and medical leave support:
Covered Medical Services: Includes general practitioner and specialist visits, emergency care, hospital stays, prescription medications, chronic disease management, and maternity and pediatric care.
Non-Occupational Sick Leave: EPS administers sick leave and benefit payouts for standard, non-work-related health issues or temporary disability.