Remote’s guide to employing in

Paraguay
paraguay flag

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

    Spanish and Guaraní

  • Population size

    7,303,000

Services available in this country:
Employer of Record ProductContractor Management
Paraguay landscape

Facts & Stats

Paraguay Map Illustration
  • Capital City

    Asunción

  • Currency

    Paraguayan guaraní (₲, PYG)

  • Languages

    Spanish and Guaraní

  • 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 Labour 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 6 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

Jan
Monday, January 1, 20241New Year's Day (Año Nuevo)
Mar
Friday, March 1, 20242Heroes Day (Día de los Héroes)
Thursday, March 28, 20243Maundy Thursday (Jueves Santo)
Friday, March 29, 20244Good Friday (Viernes Santo)
May
Wednesday, May 1, 20245Labour Day (Día del Trabajador)
Tuesday, May 14, 20246Independence Day (Día de la Independencia)
Wednesday, May 15, 20247Independence Day (Día de la Independencia)
Jun
Monday, June 10, 20248Chaco's Peace Day (Día de la Paz del Chaco)
Aug
Thursday, August 15, 20249Founding of Asunción (Fundación de Asunción)
Sep
Sunday, September 29, 202410Boquerón Battle Victory Day (Día de la victoria de la batalla de Boquerón)
Dec
Sunday, December 8, 202411Virgin of Caacupé Day (Día de la Virgen de Caacupé)
Wednesday, December 25, 202412Christmas 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.

Fair Pricing in Paraguay

Employer of Record

Hire and pay your global team

Starting at US$599/month

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

US$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

US$50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app