The SGSS is the General Social Security System, where workers and companies make their contributions and enrollments for health, pension, and payroll taxes.
SGSS contributions are the payments made by both the worker and the company to public or private entities to keep these benefits active during the employment relationship.
Affiliations are the administrative act by which a natural or legal person is officially recognized within the General Social Security System.
Are you an employer?
Remember that every legally established company with employees under a labor contract must be affiliated with the Social Security administrators; otherwise, you may incur penalties from the UGPP (Pension and Payroll Tax Management Unit).
If the company was recently incorporated, it must register as an employer with the following administrators:
EPS: Health Promoting Company.
AFP: Pension Fund Administrator.
CCF: Family Compensation Fund.
ARL: Labor Risk Administrator.
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How to choose the administrators?
The employer is responsible for handling affiliations with all administrators; however, the choice of these entities is divided as follows:
1. Employee’s choice:
EPS
AFP
2. Employer’s choice:
These administrators are general, and all employees are subject to the entities chosen by the company. These are:
CCF
This changes if, and only if, the company has collaborators in other cities.ARL
The employer must always affiliate the employee one day before their start date, as coverage begins the day after registration.
What is the affiliation process?
The employer must request affiliation with each administrator.
After the request, you must wait for a response from each entity. The response period is 10 to 20 business days after the affiliation request is filed.
Once the filing is complete, the employer proceeds with the employee’s registration. Most entities use web portals, making the process simpler and faster.
Keep this in mind!
Article 114-1 of the Tax Statute allows for the exemption of health, ICBF, and Sena contributions for companies and individuals hiring workers who earn less than 10 SMMLV (Minimum Wages).
Individuals hiring a single worker must pay the full health contribution (12.5%), as well as ICBF and Sena.
How to process your company's social security payments?
The following table shows the percentages that an employee and the company must cover to pay for social security and payroll taxes:
| Empleado | Empresa | |
| EPS | 4% | 8,5% |
| AFP | 4% | 12% |
| CCF | – | 4% |
| ARL | – | Depends on risk level I – II – III – IV – V |
| ICBF | – | 3% |
| SENA | – | 2% |
Remember that these payments are monthly, and the percentage to be paid by the employee must be deducted from their net monthly salary!
