Facts & stats
The Plurinational State of Bolivia (Estado Plurinacional de Bolivia) is a constitutional unitary state, divided into nine administrative departments.
Bolivia hosts a rich cultural history that’s stretched for over 2,500 years, a multiethnic heritage of 36 indigenous groups, the majestic Andes range (South America’s largest and highest peaks), and rich biodiversity.
Bolivia’s growing economy and its low corporate tax rate are key reasons why you companies are increasingly considering expanding into Bolivia.
Grow your team in Bolivia with Remote
To employ in Bolivia, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Bolivia can get complicated, especially without established local relationships.
Remote’s global employment solution makes it easy for your company to employ workers in Bolivia quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.
Bolivia, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.
Employing in Bolivia
Bolivia’s Labor General Law of 1942 (Ley General del Trabajo) spells out provisions guiding minimum wage rates, employee protections, workers’ rights, and labor relations across Bolivia.
Employees in Bolivia enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.
Common questions that could come up during the hiring process include minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Bolivia.
|Date||Holiday Name||Extra information|
|New Year's Day|
|Plurinational State Foundation Day|
|Agrarian Reform Day|
|Independence Day (of Bolivia)|
|National Dignity Day|
|All Souls Day and Day of the Dead|
The Bolivian minimum wage sits at B$ 2,164 per month, or $312.12 per month, which has risen 2% year on year.
- For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in Bolivia fast. The minimum onboarding time we need is only two weeks.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
Competitive benefits package in Bolivia
Remote can help you provide a competitive and compliant benefits package for your employees in Bolivia. If you have questions or would like to offer a custom benefit, let us know and we can help.
Taxes in Bolivia
Learn how employment taxes affect your payroll and your employees’ paychecks in Bolivia.
- 25% - corporate tax rate
- 10% - health insurance
- 2% - social fund contribution
- 1.71% - professional risk insurance
- 3% - employer contribution
- 13% - personal income tax rate
- 10% - social security
- 1.71% - common risk insurance
- 0.5% - insured contribution
- 0.5% - pension fund fee
Types of leave
Employees are entitled to paid annual leave after spending an entire year working for an employer. Leave entitlements depend on the number of years an employee has worked with an employer and are structured as displayed below:
- One to five years of uninterrupted services: 15 working days
- Five to 10 years of uninterrupted services: 20 working days
- More than 10 years of uninterrupted services: 30 working days
Employees are entitled to take national and local holidays off work, and employers are forbidden to negotiate with employees to work on holidays for any remuneration.
Employers are mandated to register their employees with appropriate social security agencies within five days of employment. Sick employees can draw their normal wages from the employer after certification by the social security office, and the employer can, in turn, process refunds from the state for the benefits paid out.
Female employees are entitled to 90 days of fully paid maternity leave, starting at least 45 days before delivery. In addition, postpartum employees can take an hour’s break to breastfeed, in addition to the mandatory two-hour breaks for all employees.
Employers are mandated to issue a maternity benefit equivalent to one month’s pay to a postpartum employee, as well as pre-natal and nursing subsidies of nutritional items, equivalent to one month’s wages.
Partners of pregnant employees are not entitled to any paid time off, but rather, are protected from dismissal for one year, counting from their child’s delivery.
- Adoption benefits: Adoptive parents are protected from dismissal for a year, starting from the date the adoption decision was finalized.
Employees can be terminated without advance notice for just cause, such as exposure of trade secrets, negligence, fraud, etc., but if there is no justifiable reason, the employee can either demand a severance or demand reinstatement.
Faced with an unjustified termination, an employee can either demand reinstatement or accept a severance package equivalent to three month’s wages.
Probation periods can last a maximum of 90 days, during which an employer can dismiss an employee for unsatisfactory performance.