Paraguay
Want to hire someone remotely in Paraguay? Want to hire them without spending thousands of dollars on legal fees and months bogged down in red tape? Then you’re in the right place. In the next couple of minutes, we’ll teach you about the best way to hire great talent in Paraguay.
Country snapshot
CURRENCY
Paraguayan Guaraní (PYG)
EMPLOYER TAXES
16.5%
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.
Want to hire someone remotely in Paraguay? Want to hire them without spending thousands of dollars on legal fees and months bogged down in red tape? Then you’re in the right place. In the next couple of minutes, we’ll teach you about the best way to hire great talent in Paraguay.
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 Paraguay 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 Paraguay.
Employer tax
Social security
Paid Time Off (PTO)
PTO is calculated by the:
Annual leave allowance depends on how long an employee has been employed:
- 1 year of employment- 12 days of leave.
- At least 5 years of employment- 18 days of leave.
- At least 10 years of employment- 30 days of leave.
Public Holidays
There are 13 public holidays.
Sick Days
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
- If an employee is ill, they are entitled to sick leave and are paid 50% of their regular pay by social security (IPS); and
- The other 50% is paid by the employer.
Maternity Leave
In Paraguay, maternity lasts for 18 weeks and is paid at a rate of 100% of the gross salary by IPS.
In the event of multiple births, the woman receives an additional 30 days per child.
Paternity Leave
A new father can take 2 weeks paid paternity leave after the delivery of the child. Paternity leave is also paid out by IPS at the rate of 100% of the gross salary.
Parental Leave
No statutory law for parental leave.
Other Leave
None.
Marriage Leave
None.
Bereavement Leave
For the death of an immediate family member, an employee is entitled to 3 days of leave.
Termination Process
In Paraguay, a notice of termination must be delivered to the employee in writing.
For an employee who has been employed for over 10 years cannot be terminated for unjust reasons, they must be terminated for a just cause.
Notice Period
The notice period in Paraguay is:
Mandatory notice period is 1 day.
Severance Pay
If the cause for termination is justified (misconduct or poor performance), the employee is not entitled to severance pay.
It is important to note, though, that if the employee feels that they were unjustly terminated under the reason for just cause or misconduct on the part of the employer and the employer is not able to prove the reason for dismissal in a labor court, the employee is entitled to severance pay (15 days of wages for every year worked or up to half a year’s wages) as well as back pay from the date of dismissal to the date of the court ruling.
An employee who is terminated without cause is entitled to 15 days of severance pay for every year of service.
For an employee who has over 10 years of employment with a company- If an employer is not able to prove a just cause to a labor court, the employee might either be reinstated or would have the right to double the regular severance pay.
Probation Period
The probationary period is 30 days for unqualified employees or domestic workers and 60 days for qualified workers or apprentices.
Working Hours
The standard full-time workweek is 48 hours.
For employees who work nights, the workweek is 42 hours.
For employees who work night hours, they are compensated at 130% of the regular pay rate.
Overtime
Overtime is paid at different rates:
- 150% of the regular pay rate for overtime during daytime hours.
- 200% of the regular pay for overtime during night hours and public holidays.
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