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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Capital :
Asunción
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Currency :
Paraguayan Guaraní (PYG, ₲, Gs)
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Languages spoken :
Spanish, Guarani
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Population :
7.22 million (2021 est.)
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Minimum wage 2023 :
PYG 2,680,373 (monthly)
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Cost of Living index :
$ (122 of 140 nations)
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Payroll Frequency :
Monthly/Biweekly
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VAT - standard rate :
21%
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GDP - real growth rate :
4.2% (2021 est.)
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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.
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 |
Every worker is entitled to a paid vacation period after each year of continuous work at the service of the same employer, the minimum duration of which should be:
| Length of Employment | Length of Annual Leave |
| Up to 5 years | 12 consecutive business days |
| More than 5 years and less than 10 years | 18 consecutive business days |
| More than 10 years | 30 consecutive business days |
There is no explicit provision for paid sick leave, but the law requires that medical care for the same disease last up to 26 weeks. Taking this into consideration, the length of paid sick leave is 26 weeks. In exceptional circumstances, the medical benefit can be extended. It is paid by the employer and Social Security (IPS), with each contributing 50% of the employee’s regular income.
There is no statutory parental leave.
Every female employee should have the right to fully access the Maternity Permit, regardless of the type of benefit or contract for which she provides a service, for a period of 18 uninterrupted weeks, provided that she presents a medical certificate.
When delivery occurs before the start of the 35th week of gestation, or if the child at birth weighs less than 2,000 grams or is born with congenital diseases that require an incubator or special care, justified with a medical certificate, the permit lasts for 24 weeks.
The law provides for two weeks of paid paternity leave to male workers, after their request, on the birth of a child. These leaves are paid for by the employer.
The adoptive mother, accredited by a court ruling, and the mother of the foster family, declared as such by a court ruling, have the right to access maternity leave of 18 weeks when the adoptee or the fostered child is less than six months, and 12 weeks when it is greater than six months.
| Reason for Leave | Length of Leave |
| To attend a pap test and mammography | 1 working day |
| To fulfill their personal obligations imposed by laws or government regulations | No more than 2 days in each calendar month and in no case more than 15 days in the same year |
| Marriage | 3 working days |
| The death of the spouse, children, parents, grandparents or siblings | 4 working days |
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% |
Health insurance is financed by contributions from both the employer and employee as part of their social insurance contributions.
Medical benefits are provided by the Social Insurance Institute (IPS) to insured employees. Benefits include general and specialized care, hospitalization, medicine, and prosthetics.
Accident insurance is financed by contributions from both the employer and employee as part of their social insurance contributions.
Work injuries are divided into four categories:
Benefits availed to the employee are dependent on the degree of injury.
There is no provision for monetary unemployment benefits under Paraguayan labor laws.
A public pension is financed by contributions from both the employer and employee as part of their social insurance contributions.
The insured who has reached the age of 60 and has at least 25 years of recognized service will have the right to ordinary retirement and will be entitled to 100% of the average salary of the last 36 months prior to the last contribution, or 55 years of age and 30 years of recognized service as a minimum, and will be entitled to 80% of the average salary of the last 36 months prior to the last salary.
Until a legal system of compensation for family allowances is implemented based on social security, every worker has the right to receive an allowance equivalent to 5% of the minimum wage for each married, extramarital, or adopted child. The family allowance is totally paid by the employer.