Average Salary in Colombia: Comprehensive Report 2024

Elen Muradian

Last updated on January 2, 2025 | 17 min read

LatAmRecruitment

• Colombia’s IT sector offers competitive salaries, with variations by industry, education, experience, and city.
• This report reveals salary trends across industries, education levels, experience, and regions in Colombia.

Colombia has emerged as a key destination for recruiters and talent scouts seeking skilled professionals in the global remote work market. Its thriving IT sector, supported by a highly educated workforce, has made the country a popular choice for companies looking to hire top talent at competitive rates.

Colombia allocates a significant portion of its resources to education, with public spending on education reaching 3.92% of GDP in 2021, according to the OECD. This commitment has resulted in higher educational attainment levels and a growing pool of skilled workers. A substantial number of these graduates specialize in fields such as science, technology, engineering, and mathematics (STEM), enabling Colombia to compete with regional tech hubs like Mexico, Brazil, and Argentina.

With these advantages, Colombian software developers are also in high demand; also, because employers benefit from significantly lower salary expectations compared to the US. For example, developers with nearshore experience and strong English proficiency can earn up to 7350000 COP (1,700 USD) per month, which remains cost-effective when compared to their US counterparts.

For businesses trying to expand their remote teams or considering nearshoring opportunities, understanding the market and salary landscape in Colombia is an essential starting point.

Market Overview

Colombia’s Information Technology (IT) sector has experienced significant growth over the past decade, establishing the country as a prominent player in Latin America’s digital landscape. Since 2010, the Colombian tech industry has achieved a cumulative growth of 24.5%, contributing nearly 3% to the national GDP. This expansion positions Colombia as the fourth-largest IT market in the region, following Brazil, Mexico, and Argentina.

The Information and Communications Technology (ICT) market in Colombia was valued at approximately USD 20.54 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 11.60%, reaching an estimated USD 35.56 billion by 2028. This growth is supported by a robust digital infrastructure and a tech-savvy population.

The software segment is a significant contributor to the IT sector’s expansion. In 2024, the software market in Colombia generated revenues of approximately USD 1.58 billion, with enterprise software leading the segment at an estimated USD 660.10 million. The market is expected to maintain a steady growth rate of 5.28% annually, reaching around USD 2.04 billion by 2029.

Colombia’s strategic location and time zone alignment with major markets like the United States enhance its appeal for nearshore operations. The country’s IT services exports have grown at an average rate of 4.7% between 2016 and 2021, reaching USD 299 million. Key export destinations include the United States, Spain, and Mexico.

Government initiatives have played a crucial role in fostering this growth. Programs such as “Plan Vive Digital” have been instrumental in expanding digital infrastructure and promoting ICT adoption across the country. The increasing number of software engineering graduates further bolsters the IT sector, providing a skilled workforce that attracts international companies seeking outsourcing opportunities.

Cost of Living

Living costs in Colombia are relatively affordable compared to many neighboring countries and global standards. For an individual, the minimum monthly expense for a comfortable lifestyle starts at around USD 735. However, in major urban centers like Bogotá and Medellín, the cost rises slightly, with averages of USD 868 and USD 873 per month, respectively.

When compared to nearby nations, Colombia offers a cost-efficient lifestyle. In Ecuador, the average monthly expense for one person is USD 789, while in Venezuela it is USD 766. Brazil, another regional counterpart, reports a slightly higher figure at USD 723.

Colombia’s affordability becomes even more evident when contrasted with the United States, where the average monthly living expense for a single person reaches USD 2,213. The disparity is particularly noticeable in states with high living costs, such as Hawaii, Massachusetts, and California. In contrast, Mississippi, Kansas, and Alabama are among the most affordable states in the US, according to data from Forbes.

Employee and Employer Contribution

In Colombia, all professionals in formal employment are required to contribute to the national social security system. Contributions are determined by income and ensure access to benefits such as healthcare, pension funds, and support in cases of workplace accidents, illness, retirement, or death. Individuals who are self-employed or without a job can also participate in a voluntary program with specific contribution requirements. Both employers and employees share the responsibility of making social security payments.

Before moving to the overview of salaries in Colombia, let’s recall the most important data about Colombia’s market to better understand the country’s economic condition.

Salary Breakdown

After understanding the general condition of Colombia’s economy, let’s break down the salaries in the country.

1. Minimum Wage

The current minimum monthly wage in Colombia is set at 335 USD, marking a 13.56% increase from the 2022 rate of 295 USD. This results in an approximate hourly rate of 1.6 USD based on the current exchange rate.

When compared to other countries in the Americas, Colombia’s minimum wage is relatively low. For example, in the US, the federally mandated minimum wage stands at 7.25 USD per hour, which is significantly higher. In South America, Colombia ranks just above Venezuela, Argentina, and the Dominican Republic in terms of minimum wage.

2. Average Salary Range & Distribution

Salaries across all industries in Colombia vary widely, with the minimum monthly wage starting at 1300000 COP (335 USD) and the maximum average wage reaching 20900000 COP (5,386 USD). This wide salary range reflects varying sectors and experience levels.

Compared to the US, the salary disparity is considerable, with salaries ranging from 2000 USD (minimum) to 35250 USD (maximum) in the United States. In terms of salary distribution, about 25% of the population in Colombia earns less than 2930000 COP (755 USD) per month, while 50% earn less than 4050000 COP (1044 USD).

Furthermore, 75% earn less than 6140000 COP (1582 USD) per month, with only the top 25% reaching 20900000 COP (4710 USD). This indicates a high concentration of lower and mid-level salaries, with fewer individuals reaching the higher end of the salary scale.

3. Average Salary by Sector

The average monthly salary in Colombia varies significantly by industry. While the overall average salary is 4710000 COP (1214 USD), certain industries pay more. The technology sector in Colombia, for example, has higher salaries than the general average, with many positions offering attractive pay rates, especially for experienced professionals. For instance, the average salary for software engineers is 11015980 COP (2500 USD); for DevOps — 8377807 COP (1900 USD); for QAs — 3300000 COP (750 USD).

4. Salaries by City

Salaries in Colombia also vary by region, with Bogotá and Medellín offering higher average salaries than other cities. In Bogotá, the average salary stands at 5440000 COP (1240 USD) per month, while in Medellín, it is 5390000 COP (1229 USD).

By contrast, cities like Neiva and Manizales have much lower average salaries, with figures at 4210000 COP (960 USD) and 4260000 COP (971 USD), respectively.

5. Salaries by Education Level

Education plays a significant role in Colombia’s salary expectations. Professionals with a high school diploma earn significantly less than those with a Bachelor’s degree or Master’s degree.

The breakdown:

• High school graduates earn, on average, 17% less than those with a diploma.
• Bachelor’s degree holders earn 24% more than diploma holders.
• Master’s degree holders earn 29% more than those with a Bachelor’s.
• PhD holders earn a 23% premium over those with a Master’s degree.

6. Salaries by Experience Level

Experience is another critical factor in salary determination. Professionals with 5 to 10 years of experience in Colombia can expect to earn 36% more than specialists with less than 5 years. Further, those with over 10 years of experience can expect 21% more, while veterans with over 20 years of experience can see a 9% increase compared to those with 15 to 20 years.

2025 Projections

As Colombia approaches 2025, several economic indicators suggest a modest improvement in salary levels across various sectors. Analysts project a GDP growth rate of approximately 2.7% for 2025, up from an estimated 1.7% in 2024, indicating a gradual economic recovery.

In line with this economic growth, the minimum wage is expected to rise. Projections indicate that the new minimum wage will range between 1410000 COP and 1450000 COP, equating to approximately 327 to 336 USD.

Beyond the minimum wage, overall salary increments are anticipated across various industries. The latest forecasts suggest total salary increases ranging from 3.5% to 4.0%, with a median of 4.0%.

It’s important to note that these projections are subject to various influencing factors, including inflation rates, government policies, and global economic conditions. The actual impact on purchasing power will depend on the broader economic environment in 2025.

If you consider Colombia a destination to expand your business or are looking for a nearshoring location in Latin America in 2025, DevsData LLC is a reliable partner.

DevsData LLC: Your IT Recruitment Partner in Colombia

DevsData LLC stands out as a dependable IT recruitment and software development agency with over 8 years of experience. With a talent pool of 65000 pre-vetted specialists, the company operates under a government-approved recruitment license to provide tailored hiring solutions for businesses exploring nearshoring opportunities in Colombia. Serving clients across Europe, North America, and Asia, DevsData LLC has become a trusted partner for organizations looking to streamline operations. DevsData LLC has extensive experience collaborating with global corporate clients and high-growth startups all over the world, including countries such as the US and Israel. Its consistent 5/5 ratings on platforms like Clutch and GoodFirms reflect the company’s dedication to client satisfaction.

Focusing on IT recruitment, DevsData LLC addresses one of the biggest challenges of nearshoring—finding top-tier talent. Their rigorous recruitment process includes a 90-minute problem-solving challenge, ensuring top-tier candidates with exceptional communication skills are selected. A recent collaboration with a financial services client showcased this capability, as DevsData LLC successfully sourced exceptional developers who contributed to the establishment of a new engineering office. Their expertise in securing talent extends beyond Colombia, covering other key nearshoring destinations.

DevsData LLC’s recruitment services are complemented by its proficiency in custom software development. The company has completed over 100 projects, ranging from scalable backend systems to AI-driven solutions for industries like healthcare, e-commerce, and finance. Notable clients include Skycatch, Cubus, and Novartis. Operating on a success-fee model, DevsData LLC ensures risk-free hiring with a guarantee period.

With a dual focus on IT recruitment and software development, DevsData LLC offers businesses a comprehensive approach to nearshoring in Colombia. Its local presence, technical expertise, and client-centric approach make it a reliable partner for companies seeking to optimize nearshoring benefits.

Contact DevsData LLC at general@devsdata.com or explore their services at www.devsdata.com.

Address:
DevsData IT Recruitment Medellin
Cra. 43E #11 37, El Poblado,
Medellín, Antioquia, Colombia
medellin@devsdata.com Copy email

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Bottom line

Colombia’s IT sector offers a compelling opportunity for businesses seeking skilled professionals at competitive salaries. With a strong emphasis on education and a growing pool of STEM graduates, the country has positioned itself as a leading nearshoring destination in Latin America. Colombian software developers bring technical expertise and language skills, making them an attractive choice for companies aiming to optimize costs without compromising quality.

The salary landscape further underscores Colombia’s appeal. While developers with high-level skills and nearshore experience earn salaries that are competitive regionally, they remain significantly lower than those in the US. This cost efficiency allows companies to invest in building robust teams while maintaining a lean budget. However, with salaries gradually increasing due to the growing demand for talent, businesses should act strategically to secure top-tier professionals.

DevsData LLC is an invaluable partner for organizations navigating the Colombian talent market. With local offices in multiple cities, including Bogotá, Medellin, and Cali, and years of expertise in IT recruitment, DevsData LLC specializes in identifying and securing highly skilled developers tailored to your specific business needs. DevsData LLC’s recruitment processes ensure that clients gain access to exceptional talent, positioning businesses for success in Colombia’s dynamic IT landscape.