Remote’s guide to employing in Paraguay.
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We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.
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.
7,303,000 (est. 2021)
Ease of doing business
Cost of living index
VAT - standard rate
GDP - real growth rate
To employ in Paraguay, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Paraguay can get complicated, especially without established local relationships.
Remote’s global employment solution makes it easy for your company to employ workers in Paraguay 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.
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.
|Saturday, January 1, 2022||New Year's Day||National Holiday|
|Monday, February 28, 2022||National Heroes Day||National Holiday. The official date is March 1st, but the Government changed the date.|
|Thursday, April 14, 2022||Maundy Thursday||National Holiday. Vary every year|
|Friday, April 15, 2022||Good Friday||National Holiday. Vary every year|
|Sunday, May 1, 2022||Labor Day||National Holiday|
|Saturday, May 14, 2022||National Holiday||National Holiday|
|Sunday, May 15, 2022||Independence Day||National Holiday|
|Sunday, June 12, 2022||Chaco Armistice||National Holiday|
|Monday, August 15, 2022||Founding of Asunción||National Holiday|
|Monday, October 3, 2022||Boqueron Battle Victory Day Holiday||National Holiday. The official date is September 29th, but the Government changed the date.|
|Thursday, December 8, 2022||Virgin of Caacupé Day||National Holiday|
|Sunday, December 25, 2022||Christmas Day||National Holiday|
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.
Learn how employment taxes affect your payroll and your employees’ paychecks in Paraguay.
16.5%: Social Security
Employees are entitled to leave annually, granted according to the tenure of their engagement with an employer.
There are 13 paid public holidays according to Paraguayan employment legislation.
Sick employees are entitled to full wages, paid jointly by the social security agency (50%) and their employer (50%).
Female employees are entitled to 18 weeks of maternity leave, with full wages paid by the social security agency (Instituto de Previsión Social). For multiple births, an employee receives an additional 30 days off for each child delivered.
There are no defined provisions around entitlements to paternity or parental leave.
Bereavement leave: employees are entitled to three days of paid leave in the event of an immediate family member’s death.
Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offences.
Employers are mandated to provide at least a day’s notice before terminating an employee.
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 in Paraguay can last anywhere from 30 days for unqualified employees or domestic workers, to 60 days for qualified workers and apprentices.