Paraguay landscape
Remote’s guide to employing in

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Make employment in Paraguay easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Paraguay, all in one easy-to-use platform.

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  • Capital city


  • Currency

    Paraguayan guaraní (₲, PYG)

  • Languages

    Guaraní and Spanish

  • Population size


  • Remote-Owned Local Entity

Services available in this country:
Employer of RecordContractor Management

Facts & Stats

Paraguay Map Illustration
  • Capital city


  • Currency

    Paraguayan guaraní (₲, PYG)

  • Languages

    Guaraní and Spanish

  • Population size


  • Ease of doing business


  • Cost of living index

    30.72 (2021)

  • Payroll frequency


  • VAT - standard rate


  • GDP - real growth rate

    -0.6% (2020)

The Republic of Paraguay (República del Paraguay) is a South American representative democracy that’s famous for its passionate football culture, one of the world’s leading hydroelectric projects, and a fun-loving population of friendly locals.

With a developing economy that's seen dazzling double-figure GDP growth over the past decade, Paraguay holds promise for businesses looking to expand into South America. The relatively low cost of living combined with a temperate climate and breathtaking natural beauty means that Paraguay is a tempting destination for remote workers and digital nomads.

Grow your team in Paraguay with Remote

Looking to employ workers in Paraguay? Companies hiring in Paraguay must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Paraguay on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Paraguay team. You can also pay contractors now in Paraguay with Remote in some currencies (talk to an expert now for full details).

Risks of misclassification

Paraguay, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Paraguay may lead to fines and penalties for the offending company.

Employing in Paraguay

We can help you get a new employee started in Paraguay fast. The minimum onboarding time we need is only 10 working days.

The Paraguayan Labor Code of 1993 spells out provisions for employee protections and workers’ rights for Paraguay’s workforce of 3.5 million. Employees in Paraguay 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 Paraguay.

Onboarding Time

We can help you get a new employee started in Paraguay fast. The minimum onboarding time we need is only 17 working days.

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.

12 Public holidays

Sunday, January 1, 20231New Year's Day (Año Nuevo)
Monday, February 27, 20232National Heroes Day - Observed (Día de los Heroes de la Patria)
Thursday, April 6, 20233Maundy Thursday (Jueves Santo)
Friday, April 7, 20234Good Friday (Viernes Santo)
Sunday, April 9, 20235Easter Sunday (Domingo de Resurrección)
Monday, May 1, 20236Labor Day (Día del trabajador)
Monday, May 15, 20237Independence Day (Día de la independencia)
Monday, June 12, 20238Chaco Armistice (Día de la Paz del Chaco)
Tuesday, August 15, 20239Founding of Asunción (Fundación de Asunción)
Friday, September 29, 202310Boqueron Battle Victory Day Holiday ((Día de la batalla de Boquerón)
Friday, December 8, 202311Virgin of Caacupé Day (Día de la Virgen de Caacupé)
Monday, December 25, 202312Christmas Day (Navidad)

Competitive benefits package in Paraguay

Remote can help you provide a competitive and compliant benefits package for your employees in Paraguay. If you have questions or would like to offer a custom benefit, let us know and we can help.

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Flexible work schedule

  • Pension or 401(K)

  • Life and Disability Insurance

  • Other Insurance

Taxes in Paraguay

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Paraguay.

  • 16.5%

    Social Security

Types of Leave

Employees are entitled to leave annually, granted according to the tenure of their engagement with an employer.

  • 1 year of employment: 12 days leave

  • 5+ years of employment: 18 days leave

  • 10+ years of employment: 30 days leave

Employment termination

Termination process

Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offences.

Notice period

Employers are mandated to provide at least a day’s notice before terminating an employee.

Severance pay

Employees who’re terminated without any justification are entitled to 15 days’ pay for every year of employment. On the other hand, employees who’re terminated with just cause are not entitled to a severance package – provided they don’t appeal the termination, in which case they will be entitled to the standard severance pay.

Probation periods

Probation periods in Paraguay can last anywhere from 30 days for unqualified employees or domestic workers, to 60 days for qualified workers and apprentices.