Paraguay, officially the Republic of Paraguay, is a landlocked country in South America. It is bordered to the south and southwest by Argentina, Brazil to the east and northeast, and Bolivia to the northwest. Despite being one of South America’s only landlocked countries, Paraguay has ports on the Paraguay and Paraná rivers that provide access to the Atlantic Ocean via the Paraná-Paraguay Waterway. Paraguay is a founding member of Mercosur, the United Nations, the Organization of American States, the Non-Aligned Movement, and the Lima Group.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Paraguay.
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Paraguay, officially the Republic of Paraguay, is a landlocked country in South America. It is bordered to the south and southwest by Argentina, Brazil to the east and northeast, and Bolivia to the northwest. Despite being one of South America’s only landlocked countries, Paraguay has ports on the Paraguay and Paraná rivers that provide access to the Atlantic Ocean via the Paraná-Paraguay Waterway. Paraguay is a founding member of Mercosur, the United Nations, the Organization of American States, the Non-Aligned Movement, and the Lima Group.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Paraguay.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Paraguay planning:
The holidays mentioned below are valid for the year 2026.
| January 1 | New Year’s Day | |
| March 1 | National Heroes Day | |
| April 2 | Maundy Thursday | Movable |
| April 3 | Good Friday | Movable |
| May 1 | Labour Day | |
| May 14 | Independence Day | |
| May 15 | Mother's Day | |
| June 12 | Chaco Armistice | Movable |
| August 15 | Founding of Asunción | |
| September 29 | Boqueron Battle Victory Day | |
| December 8 | Virgin of Caacupé Day | |
| December 25 | Christmas Day |
The approximate time for sharing the contract with an employee in Paraguay is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
Social Insurance Institute (IPS) finances the following benefits:
Employers contribute 16.5% to social insurance, while employees contribute 9%.
| Contribution | Employer’s Contribution | Employee’s Contribution |
| Social Insurance | 16.5% | 9% |
The normal working hours are eight hours a day and 48 hours per week during the daytime. For night workers, this limit is seven hours a night and 42 hours a week while for workers with mixed schedules, this limit is seven and a half hours a day or night and 45 hours a week.
The total working hours inclusive of overtime may not exceed 11 hours a day. The maximum overtime hours are three hours a day and nine hours a week.
| Overtime Pay Rate | Time of Overtime |
| 150% of a normal wage rate | During the day |
| 200% of a normal wage rate | During the night |
The probation period in the initial stage of the employment contract aims for the employer to appreciate the skills of workers, and the employee may verify the suitability of the conditions of the contracted work. The duration of the probationary period is:
For terminating an indefinite-term contract, the required notice period depends on the worker’s length of service as follows:
| Length of Service | Length of Notice |
| Up to 1 year of service (after completion of probation period) | 30 days |
| More than 1 and up to 5 years of service | 45 days |
| More than 5 years and up to 10 years of service | 60 days |
| 10 years of service and beyond | 90 days |
The normal working hours are eight hours a day and 48 hours per week during the daytime. For night workers, this limit is seven hours a night and 42 hours a week while for workers with mixed schedules, this limit is seven and a half hours a day or night and 45 hours a week.
The total working hours inclusive of overtime may not exceed 11 hours a day. The maximum overtime hours are three hours a day and nine hours a week.
| Overtime Pay Rate | Time of Overtime |
| 150% of a normal wage rate | During the day |
| 200% of a normal wage rate | During the night |
The probation period in the initial stage of the employment contract aims for the employer to appreciate the skills of workers, and the employee may verify the suitability of the conditions of the contracted work. The duration of the probationary period is:
For terminating an indefinite-term contract, the required notice period depends on the worker’s length of service as follows:
| Length of Service | Length of Notice |
| Up to 1 year of service (after completion of probation period) | 30 days |
| More than 1 and up to 5 years of service | 45 days |
| More than 5 years and up to 10 years of service | 60 days |
| 10 years of service and beyond | 90 days |
There are no regulations regarding unpaid leave.
Social Insurance Institute (IPS) finances the following benefits:
Employers contribute 16.5% to social insurance, while employees contribute 9%.
| Contribution | Employer’s Contribution | Employee’s Contribution |
| Social Insurance | 16.5% | 9% |
Benefits
Employer Contribution
Maximum Base
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