Bolivia
Found someone great in Bolivia and want to bring them onto the team? It’s a good thing you’re here. On this page, you’ll learn exactly what you need to know before making hires in Bolivia: Legal obligations, risks, and the easiest path to hiring great talent overseas.
Country snapshot
CURRENCY
Boliviano (BOB)
EMPLOYER TAXES
16.71%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Spanish
It’s the fastest way to hire globally
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It’s a lot cheaper
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
It’s more flexible for you & your team
Can be less risky than hiring employees
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
Some people want to be employees
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
You might not have as much control over your talent
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
So you want to hire in Bolivia. That’s great. But you should know, from the start, that hiring in Bolivia is different than hiring in your home country. There are different labor laws, different regulations, and different systems for hiring people. If you don’t do things right, you’ll be putting your company at the risk of fines—and risk losing the talent you brought onboard.
Hire talent as contractors
Hire talent as employees
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Bolivia than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Bolivia.
Employer tax
Housing
Professional Risk Premium
National Healthcare
Employer Solidarity Contribution
Paid Time Off (PTO)
In Bolivia is outlined in the employment contract as a minimum of 15 days paid leave a year (following completion of 1-year service) in addition to public holidays.
This increases to 20 days paid leave once the employee has been employed for five years and increases after ten years of service to 30 days paid leave per year.
Public Holidays
There are 10 public holidays.
Sick Days
Employees are entitled to up to 26 weeks of paid sick leave per year and must provide a medical certificate within 48 hours of the first day of sickness.
The employer pays the sick pay at 100.00% of the regular salary rate (to be reimbursed at a rate of 75.00% from the social security) from the 5th day of sickness.
Maternity Leave
Female employees are eligible for maternity benefits, consisting of 90 days paid maternity leave, 45 days before the due date, and 45 days after.
The employer will pay the maternity benefit at 100.00% of the national minimum wage; the employer will receive a reimbursement of 90.00% from social security.
Paternity Leave
The father is entitled to mandatory paid paternity leave of 3 days.
Parental Leave
There are no provisions in the law regarding parental leave.
Other Leave
No Info.
Marriage Leave
No Info.
Bereavement Leave
Public employees are entitled of 3 days of paid bereavement leave must be granted to an employee in the event of the death of a parent, child, sibling, or spouse.
Termination Process
The termination process is standard in Bolivia based on the prescribed list of termination reasons contained within article 16 of the General Labour Law unless an employer can provide sufficient cause for dismissal without notice.
Notice of termination must be in writing and sent to the relevant governmental authorities.
Notice Period
In Bolivia labor law, there is no mandatory notice period.
Severance Pay
Severance pay in Bolivia is mandatory if applicable. Still, the amount differs based on the type of termination, i.e., termination by an employee, termination by mutual agreement, termination without cause, and termination with a cause in an indefinite term agreement and fixed-term agreement.
It is common for a severance payment to be calculated as one month’s regular salary payment for each completed year of service.
Probation Period
Probation period is 1 and 3 months.
Working Hours
The standard working hours in Bolivia is 8 hours per day, up to maximum of 6 days per week.
Overtime
In Bolivia, if the employees will work more than the working hours a week is to be paid as overtime and is regulated by employment contract/collective agreements. In general, overtime maximum limits are set at 2 hours per day and paid 200.00% of the standard salary.
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