Hire in Paraguay

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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Easily onboard your remote talent in Paraguay through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Paraguay

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Cost of living index

$ (122 of 140 nations)

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Currency

Paraguayan Guaraní (PYG, ₲, Gs)

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Payroll frequency

Monthly/Biweekly

Basic facts

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.

Capital

Asunción

Official language/s

Spanish, Guarani

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Population

6.86 million (2023 est.)

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VAT - standard rate

21%

The holidays mentioned below are valid for the year 2025.

January 1New Year’s Day
March 1National Heroes Day
April 17Maundy ThursdayMovable
April 18Good FridayMovable
May 1Labor Day
May 14Independence Day
June 12Chaco ArmisticeMovable
August 15Founding of Asunción
September 29Boqueron Battle Victory Day
December 8Virgin of Caacupé Day
December 25Christmas 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.

  • Either party can terminate the probationary contract without any liability. Workers on probation are provided all benefits except for notice and severance pay.
  • The Paraguayan Labor Law prohibits hiring fixed term contract workers for tasks of permanent nature.
  • In case of dismissal without just cause, the employer must pay the indemnity equal to 15 days of wages for each year of service or a fraction of six months.

Social Insurance Institute (IPS) finances the following benefits:

  • Retirement Fund:
    • Long-term economic benefits (retirement and pensions);
    • Widowhood and Orphans Pensions, in the event of the death of the titular Worker.
  • Health Fund:
    • Short-term economic benefits (sickness and maternity benefits);
    • Medical care, medications, supplies, prosthetics, and other medical expenses.

Employers contribute 16.5% to social insurance, while employees contribute 9%.

Contribution Employer’s Contribution Employee’s Contribution
Social Insurance 16.5% 9%

Working Hours

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.

Overtime

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

 

Probation Period 

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:

  • 30 days for domestic workers and unskilled workers;
  • 60 days for skilled workers or apprentices;
  • A different period as agreed between the parties for highly skilled technical workers, depending upon the period of contracted work.
Termination Notice Period

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
Working Hours

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.

Overtime

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

 

Probation Period 

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:

  • 30 days for domestic workers and unskilled workers;
  • 60 days for skilled workers or apprentices;
  • A different period as agreed between the parties for highly skilled technical workers, depending upon the period of contracted work.
Termination Notice Period

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

Unpaid Leave

There are no regulations regarding unpaid leave.

Social Insurance Institute (IPS) finances the following benefits:

  • Retirement Fund:
    • Long-term economic benefits (retirement and pensions);
    • Widowhood and Orphans Pensions, in the event of the death of the titular Worker.
  • Health Fund:
    • Short-term economic benefits (sickness and maternity benefits);
    • Medical care, medications, supplies, prosthetics, and other medical expenses.

Employers contribute 16.5% to social insurance, while employees contribute 9%.

Contribution Employer’s Contribution Employee’s Contribution
Social Insurance 16.5% 9%