Paraguay
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.
- Capital city
Asunción
- Currency
Paraguayan guaraní (₲, PYG)
- Languages
Guaraní and Spanish
- Population size
7,303,000
- Remote-Owned Local Entity
Facts & Stats
- Capital city
Asunción
- Currency
Paraguayan guaraní (₲, PYG)
- Languages
Guaraní and Spanish
- Population size
7,303,000
- Ease of doing business
Medium
- Cost of living index
30.72 (2021)
- Payroll frequency
Monthly
- VAT - standard rate
10%
- 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
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.