How to Properly Withdraw My Severance Pay- A Comprehensive Guide

Cómo puedo retirar mis cesantías

Retiring your severance pay, also known as cesantías in Spanish-speaking countries, is an important step to ensure you have financial security after leaving your job. Cesantías are a type of social security benefit that employees in Colombia are entitled to receive upon termination of their employment. In this article, we will guide you through the process of how to withdraw your cesantías.

Understanding Cesantías

Cesantías are a mandatory contribution made by both employers and employees in Colombia. The amount is calculated based on the employee’s salary and is intended to provide financial support during periods of unemployment. To be eligible for cesantías, you must have worked for at least one year with the same employer.

Steps to Withdraw Cesantías

1.

Check Your Balance

Before withdrawing your cesantías, it’s essential to know how much you have accumulated. You can do this by contacting your employer’s human resources department or visiting the official website of the Colombian Social Security Fund (Fondo de Pensiones y Cesantías).

2.

Open a Cesantías Account

If you haven’t already, you will need to open a cesantías account. This can be done through your employer or by visiting the Colombian Social Security Fund’s website. Once your account is set up, you will receive a personal identification number (PIN) that you will need to access your funds.

3.

Choose a Withdrawal Method

There are several ways to withdraw your cesantías, including:
–

Bank Transfer

: Transfer the funds directly to your bank account.
–

Cash Withdrawal

: Withdraw the money in cash from an authorized entity.
–

Check

: Request a check from the Colombian Social Security Fund.

4.

Complete the Withdrawal Process

To withdraw your cesantías, you will need to provide the following documents:
–

ID Card

–

Account Number

–

Pin

–

Proof of Address

Once you have gathered all the necessary documents, visit the Colombian Social Security Fund’s office or authorized entity to complete the withdrawal process.

5.

Understand Tax Implications

When withdrawing your cesantías, it’s important to be aware of the tax implications. In some cases, a portion of the withdrawn amount may be subject to income tax. Consult with a tax professional or the Colombian Social Security Fund for more information on how to handle taxes on your cesantías.

Conclusion

Retiring your cesantías is a straightforward process that can provide you with the financial support you need during unemployment. By following these steps and understanding the tax implications, you can ensure a smooth and hassle-free withdrawal of your cesantías.