* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Paraguayan Guaraní (₲)



Employment Cost


Annual Leave

12 days

In-demand Specialties*
Medical Professionals, Legal Professionals, Teaching

The Ultimate Guide to Hiring Employees in Paraguay

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Paraguay

Employing in Paraguay requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Paraguay with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Paraguay quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Paraguay boasts a rich cultural blend of Amerindian and Spanish traditions, with Spanish and Guarani as predominant languages.

The country offers a relatively low cost of living, making it cost-effective for hiring skilled professionals.

Establishing a presence in Paraguay allows businesses to expand into Latin American markets.

Paraguay is investing in education and skills development, resulting in a workforce with evolving capabilities and adaptability to new technologies.


Fundamental Aspects of Employment in Paraguay

In Paraguay, written employment contracts are required for most types of employment. These contracts, in Spanish and signed by both parties, must specify:

  • Termination terms
  • Notice period
  • Working hours
  • Bonuses
  • Holiday leave
  • Sick leave
  • Duties
  • Confidentiality provisions
  • Agreed salary should be in Paraguayan guaraní

Probationary Period in Paraguay

In Paraguay, probation periods are mandatory for employment contracts. They last:

  • 30 days for unqualified employees or domestic workers.
  • 60 days for qualified workers or apprentices.

Working hours in Paraguay

In Paraguay, the standard workweek consists of 48 hours, with 8 hours per day. However, if employees work between 8:00 pm and 6:00 am, their weekly hours must not exceed 42.

Overtime in Paraguay

In Paraguay, overtime compensation is determined by the employment contract or collective agreements. The maximum allowed overtime is 57 hours per week or 3 hours per day. Compensation rates are set at 150% for daytime work and 200% for night or holiday work, applicable when an employee works more than 48 hours per week.

Navigating Key Aspects of Payroll in Paraguay

Paraguay has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January- 31 December

Fiscal Year in Paraguay

1 January- 31 December is the 12-month accounting period that businesses in Paraguay use for financial and tax reporting purposes.

Payroll Cycle in Paraguay

The payroll cycle in Paraguay is usually monthly, with employees being paid by end of month.
11,923.56 PYG p/h

Minimum Wage in Paraguay

The minimum wage for employees in Paraguay is typically 11,923.56 PYG per hour, amounting to ~2,680,373 PYG per month for a typical 48 hour work week.

Minimum wages and salaries in Paraguay

The current minimum wage in Paraguay is set at 2,289,324 PYG per month.

Bonus Payments in Paraguay

In Paraguay, the law mandates 13th-month payments, requiring an additional month's salary to be paid to employees by the year's end. This payment, often referred to as a Christmas bonus, amounts to one-twelfth of the total annual salary.

Comprehensive Overview of Employment Taxes in Paraguay

Understanding the tax obligations for both employers and employees is crucial when operating in Paraguay's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Paraguay.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 16.5% on top of the employee salary in Paraguay.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Paraguay, the typical estimation for employee payroll contributions cost is around 9%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

The individual income tax in Paraguay ranges from 8% to 10%. The tax calculation is based on progressive rates. The income tax is calculated annually, based on the income earned during the calendar year.

Tax Rate Income Bracket

Pension in Paraguay

In Paraguay, both employers and employees must make mandatory pension contributions. An individual aged 60 with at least 25 years of service receives 100% of the average salary of the last 36 months. Alternatively, those with a minimum of 30 years of service and aged 55 can receive 80% of the average salary of the last 36 months.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Paraguay tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Paraguay

When it comes to terminating employment in Paraguay, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Paraguay, termination procedures vary based on employment agreements, contracts, and reasons for termination. Employees must provide written notice of termination. Employers are limited in unjustly terminating employees with over ten years of employment unless a valid cause exists. Fair termination reasons include:

  • The dismissal of the worker for just cause or without just cause (with severance payment)
  • Resignation of the worker or withdrawal for justified reasons
  • Mutual agreement
  • By expiration of the contract

Notice Period

In Paraguay, the minimum mandatory notice period is one day, which increases based on tenure:

  • 30 days for employees with up to 1 year of service
  • 45 days for employees with 1 year to 5 years of service
  • 60 days for employees with 5 years to 10 years of service
  • 90 days for employees with more than 10 years of service

Severance Pay

In Paraguay, if an employee is terminated due to redundancy or lack of suitability for the job, they are entitled to severance pay. However, if an employee is fired without valid reason, the employer must provide compensation equal to fifteen days' wages for each year of service, or a proportional fraction thereof for six months.

Annual Leave Entitlements and Company Policies in Paraguay

The annual leave entitlement in Paraguay is 12 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Paraguay

Paraguay has 11 mandatory national public holidays in a year.

Holiday Date

Paid Time Off in Paraguay

Maternity Leave in Paraguay

Paternity Leave in Paraguay

Sick Leave in Paraguay

Parental Leave In Paraguay

Paraguay's Benefits Built Into Playroll

Competitive benefits package in Paraguay

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Paraguay's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Paraguay

Make your benefits package in Paraguay a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

Statutory benefits for employment in Paraguay

In Paraguay, statutory benefits are provided by the Social Insurance Institute (IPS) to insured employees. Emplotees are entitled to:

  • Annual Leave
  • Sick Leave
  • Maternity and Paternity Leave
  • Severance Pay
  • Overtime Compensation

Playroll allows you to provide localized benefits for employees in Paraguay within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Paraguay create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Paraguay

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Paraguay.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!