.svg)
.svg)
.svg)
Thousands of global businesses can't be wrong.
Sign up for free and explore global hiring with Playroll.
Paraguay offers comparatively low labor costs within South America, especially in sectors like shared services, tech support, and back-office roles. Your company's total cost to hire is driven by gross salary plus mandatory employer contributions to the Instituto de Previsión Social (IPS) and any additional benefits you offer.
Below are average monthly costs for popular roles in 2026, combining typical market salaries in Asunción and other major cities with Paraguay's standard employer IPS contribution of 16.5% on covered earnings, plus a small allowance for payroll charges. Figures are estimates for full-time roles; they are not legal minimums and will vary by seniority, industry, language skills, and benefits. USD values assume an exchange rate of roughly PYG 7,300 = USD 1 and are rounded.
- Software Engineer:
Average salary PYG 12,000,000 (≈ USD 1,645) + employer contributions PYG 2,100,000 (≈ USD 290) = Estimated Total Monthly Cost PYG 14,100,000 (≈ USD 1,935). Costs are higher for senior engineers, niche stacks, cloud or security expertise, and strong English, particularly when working with global product teams. - Product Manager:
Average salary PYG 15,000,000 (≈ USD 2,055) + employer contributions PYG 2,600,000 (≈ USD 355) = Estimated Total Monthly Cost PYG 17,600,000 (≈ USD 2,410). Product roles overseeing international roadmaps, data-heavy workflows, or revenue ownership typically command a premium and may include performance-based bonuses. - Marketing Specialist:
Average salary PYG 8,000,000 (≈ USD 1,095) + employer contributions PYG 1,350,000 (≈ USD 185) = Estimated Total Monthly Cost PYG 9,350,000 (≈ USD 1,280). Digital marketers with paid-media, analytics, and regional campaign experience sit toward the top end, especially in export-oriented or SaaS businesses. - Customer Support Representative:
Average salary PYG 5,000,000 (≈ USD 685) + employer contributions PYG 830,000 (≈ USD 115) = Estimated Total Monthly Cost PYG 5,830,000 (≈ USD 800). Bilingual or night-shift agents supporting North American or European time zones usually receive higher pay and may also be eligible for shift or performance allowances. - HR Manager:
Average salary PYG 13,000,000 (≈ USD 1,780) + employer contributions PYG 2,200,000 (≈ USD 300) = Estimated Total Monthly Cost PYG 15,200,000 (≈ USD 2,080). HR leaders with experience in Paraguay labor law, IPS processes, and multinational environments can attract higher compensation, particularly in larger tech, finance, or services organizations.
Figures may differ depending on exchange rates, contribution caps, and your internal approach to bonuses, health coverage, and other benefits.
💡 Curious how much it would cost to hire your next role in Paraguay? Use our Salary Benchmarking Tool to get an instant, role-specific estimate - including taxes and compliance costs.
When you hire in Paraguay, salary is only one part of your budget. You also need to consider statutory IPS contributions, leave and holiday entitlements, any contractual bonuses, and how probation, notice, and termination rules may translate into additional costs over an employee's lifecycle.
In 2026, mandatory employer contributions to IPS usually add around 16.5% on top of covered earnings before you factor in optional benefits such as supplemental health insurance, meal vouchers, transport support, or performance incentives.
Leave and Paid Time Off
In Paraguay, statutory paid annual leave ranges from 12 to 30 calendar days depending on an employee's length of service, and public holidays - typically around 12 per year - are widely observed. Employers must also plan for paid maternity leave of 18 weeks and short paternity leave, plus sick leave obligations.
Mandatory Employer Contributions
The primary mandatory employer cost in Paraguay is the social security contribution to IPS, generally 16.5% of an employee's contributable salary, covering health, pensions, and certain contingencies. You should confirm current ceilings and classifications, because contribution limits can slightly change and affect total cost.
Probation and Notice Periods
Paraguay allows probation periods, often up to 90 days, during which termination procedures can be somewhat more flexible but still require compliant documentation. After probation, statutory notice periods linked to seniority and, in some cases, severance obligations can significantly increase your effective offboarding cost.
Compensation Structure and Bonuses
Base salary in Paraguay is often complemented by variable bonuses, commissions, or allowances, particularly in sales, tech, and managerial roles. A 13th-month salary (Christmas bonus) is a widely practiced and treated as mandatory benefit, so most employers budget one extra month of salary each year.
Social Security and Tax Compliance
Employers in Paraguay must register with IPS, withhold and remit both employer and employee contributions, and comply with monthly or periodic reporting schedules. You are also responsible for withholding income tax from salaries under Paraguay's personal income tax system and meeting filing deadlines to avoid penalties.
Hiring and Engagement Models
If you lack a Paraguayan legal entity, partnering with an Employer of Record lets you compliantly hire, pay, and manage staff in Paraguay without setting up a company. If you hire directly, you must handle contracts, IPS registration, payroll processing, and terminations in-house or via a trusted local provider.
Bring them on board seamlessly with Playroll. Our legal experts handle compliance so you don’t have to.
Book a DemoHere are six actionable ways to make your hiring strategy more cost-efficient – wherever you’re building your team.
- Plan Around Statutory Contribution Caps
Most countries set salary ceilings for mandatory employer contributions like pensions, healthcare, or unemployment insurance. Once an employee’s earnings exceed that cap, your contribution amount stays fixed. Mapping compensation bands against these limits before finalizing offers helps you remain competitive without paying unnecessary premiums. - Localize Benefits Strategically
Every market values different perks. Instead of applying a global benefits template, align packages to local expectations and cultural norms. In some regions, private healthcare or transport allowances are far more attractive than bonuses or extra paid leave. Prioritize what your team will value most and trim the rest – you’ll keep engagement high while reducing spend. - Consider an Employer of Record (EOR)
Running your own entity can be expensive – local payroll systems, tax filings, and compliance administration add up fast. Partnering with a trusted EOR like Playroll simplifies hiring anywhere in the world. We manage contracts, benefits, payroll, and compliance for you, all under one transparent monthly fee. It’s the easiest way to scale globally without unexpected costs or compliance risks. - Revisit Employment Contract Types and Terms
Not every role needs to be permanent or full-time. Many labor frameworks allow fixed-term or project-based contracts, which can offer both flexibility and cost control. Be intentional about probation periods, notice clauses, and renewal terms – clear definitions reduce risk and prevent costly disputes later. - Explore Cross-Border Hiring Options
If a role doesn’t require strict on-site presence, widen your search to include neighboring or lower-cost markets. With compliant hiring solutions, you can engage top talent in other countries while reducing salary and overhead costs – all without setting up additional legal entities. - Build Internal Mobility
Before recruiting new talent, look at who you already have. Upskilling or promoting existing employees can fill gaps faster and for less cost than external recruitment. This also boosts retention and engagement, since employees see clear career progression within your organization.
What is the average employer cost of hiring in Paraguay in 2026?
.png)
In 2026, average employer costs in Paraguay range roughly from USD 800 to USD 2,500 per month for mid-level talent, including IPS social security contributions and common benefits. Companies should also budget for a 13th-month salary and any performance or sector-specific bonuses.
Are there regional or industry-specific variations in employer costs in Paraguay?
Employer costs in Paraguay differ by location and sector, with higher salaries in Asunción and in industries like tech, finance, and export services. Smaller cities can be cheaper but may limit access to specialized or senior talent.
What is the estimated timeline for hiring in Paraguay?
Most mid-level hires in Paraguay take around 4-8 weeks, while senior or specialized roles may require more time. Timelines depend on skill scarcity, language requirements, and how quickly you move candidates through your hiring process.
What factors impact the cost of hiring in Paraguay?
In Paraguay, hiring costs are driven by role seniority, sector norms, language requirements, and your benefits package, including 13th-month pay and bonuses. IPS social security contributions and your chosen hiring model (direct entity vs. EOR) further influence total employer spend.
How often do employment-cost rules change in Paraguay?
Paraguay periodically updates key employment-cost elements like minimum wage levels and IPS contribution ceilings, typically on an annual or multi-year basis. Regular compliance checks are essential to keep payroll accurate and avoid penalties.
about the author
Jaime Watkins
Jaime is a content specialist at Playroll, specializing in global HR trends and compliance. With a strong background in languages and writing, she turns complex employment issues into clear insights to help employers stay ahead of the curve in an ever-changing global workforce.
Back to Top
.svg)
.svg)