On May 25th, 2019, Congress issued Law 1955, that established the National Development Plan 2018-2022, which overturned article 135 of Law 1753 of 2015 (former National Development Plan) and which partially overturned Decree 1273 of 2018 that regulated social security contributions of independent contractors. Article 135 of Law 1753 of 2015 determined that public and private contracting parties must retain and transfer the contributions to the Social Security Integral System (“SSIS”) of independent contractors.
Law 1753 was regulated by Decree 1273 of 2018 which (i) established the payment in monthly arrears of the contributions to the SSIS of independent contractors as of October 2018 and (ii) set the rules pertaining the retention and transfer by the contracting party of the contributions of their contractors with personal service agreements related to the core business of the contracting company, as of June 2019.
Because of the issuance of Law 1955 of 2019, the obligation for contracting parties to retain and pay the contributions to the SSIS of independent contractors is no longer in force and effect. Therefore, contracting parties shall only request to their independent contractors, the evidence of their compliance with the complete and timely payment of the contributions of the SSIS. Payment in monthly arrears of the contributions to the SSIS of independent contractors was not modified by this law, thus, it is still in force.