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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
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.
In Paraguay, written employment contracts are required for most types of employment. These contracts, in Spanish and signed by both parties, must specify:
In Paraguay, probation periods are mandatory for employment contracts. They last:
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.
In Paraguay, overtime is voluntary and must be agreed upon by both employer and employee. The maximum overtime allowed is 10 hours per week or 3 hours per day. Overtime compensation is 150% for daytime work and 200% for work on Sundays, nights, or holidays, applicable when employees exceed 48 hours per week.
The current minimum wage in Paraguay is set at 2,798,309 PYG per month.
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.
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.
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.
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:
In Paraguay, the minimum mandatory notice period is one day, which increases based on tenure:
In Paraguay, employees terminated due to redundancy or unsuitability are entitled to severance pay. If terminated without valid reason, the employer must compensate them with 15 days' wages for each year of service, or a proportional amount for six months of service.
Paraguay has 11 mandatory national public holidays in a year.
In Paraguay, statutory benefits are provided by the Social Insurance Institute (IPS) to insured employees. Emplotees are entitled to:
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