When considering business expansion in Bolivia, consider partnering with an Employer of Record (EOR). A Bolivia EOR takes on all employment responsibilities, including payroll, taxes, and compliance with local labor laws. Your company maintains control over daily employee activities, while the EOR handles legal employer duties, reducing your administrative load.

Expanding your team means hiring the right people when you need them for the right jobs. In Bolivia, it's important for employers to establish a local presence to handle compliance, payroll, taxes, and benefits. Bolivia's employment regulations can be complex, making it challenging to stay compliant.

With Gloroots's global Employer of Record (EoR) service, you can let us handle payroll, taxes, benefits, and compliance, allowing you to focus on your team and growing your business.

Misclassification is when employers incorrectly categorize their employees. This happens when employers label someone as an independent contractor or exempt them from certain employment rules and benefits, even if they should be considered as having legal rights and benefits.

Using a PEO/EOR in Bolivia helps reduce the risks associated with misclassification. It ensures compliance with labor laws, accurate classification, precise payroll processing, and access to comprehensive benefits. This allows businesses to focus on their core activities while leaving employment-related tasks to experienced professionals.

The Labor General Law of 1942 regulates all matters pertaining to employment; minimum wages, social security, working hours, holidays, etc. Employers need to stay compliant with these laws or risk incurring hefty fines and penalties levied by the Ministry of Labor.

To navigate Bolivia's employment laws successfully, it's wise to consult local legal experts or consider partnering with an Employer of Record (EOR) service to ensure compliance while focusing on your business growth.

Employment contract

In Bolivia, employment agreements may take the form of spoken or written contracts, and they are typically considered open-ended. Nonetheless, the initial 90 days are regarded as a probationary period. These agreements should be written in the Spanish language.

This contract typically includes: 

•  Identification of both parties
•  Start date of employment (and duration for temporary contracts)
• Work locations
• Clear job description
• Salary and other compensation in Euros
• Working hours
• Total number of holidays
• Notice periods for termination
• Reference to collective agreements

This might sound overwhelming—but it doesn’t have to be. A solution like Gloroots eliminates the barriers for you. With Gloroots’ Employer of Record offering, hiring and managing employees globally is a piece of cake.

Get an overview of what you need to know when hiring in Bolivia.

Working time

In Bolivia, the regular workday consists of 8 hours, with a maximum of 6 days a week.

Overtime

Any work beyond the usual weekly working hours qualifies as overtime and is governed by employment contracts or collective agreements. Typically, the maximum limit for overtime is set at 2 hours per day, and it is compensated at a rate of 200.00% of the regular salary.

Public Holidays

The country observes 10  public holidays employees can take as paid days off.

Minimum Wage

Bolivia's minimum monthly wage stands at 2,250 BOB.

Annual Leave

In Bolivia, the employment contract specifies paid leave, starting with a minimum of 15 days per year after one year of service, in addition to public holidays. After five years of employment, this entitlement increases to 20 days of paid leave annually, and after ten years of service, it extends to 30 days of paid leave each year.

Paid Sick Leaves

Employees in Bolivia have the right to receive up to 26 weeks of paid sick leave each year. They are required to submit a medical certificate within 48 hours of the first day of illness. Starting from the fifth day of sickness, the employer provides sick pay at a rate of 100.00% of the standard salary, with 75.00% of this amount to be reimbursed by social security.

Maternity leaves

Female employees in Bolivia are entitled to maternity benefits, which include 90 days of paid maternity leave split into 45 days before the due date and 45 days after. The employer provides this benefit at a rate of 100.00% of the national minimum wage, with a reimbursement of 90.00% from social security.

Paternity leaves

Fathers have a right to receive compulsory paid paternity leave lasting for three days.

Tax and Social Security contribution:

Employer Payroll Contributions

Employee Payroll Contributions

Employee Income tax

Termination 

The termination procedure in Bolivia adheres to a standard set of reasons outlined in Article 16 of the General Labour Law, unless an employer can justify immediate dismissal. Notice of termination must be provided in written form and sent to the appropriate government authorities.

Severance Pay

In Bolivia, severance pay is obligatory, but the specific amount varies depending on the circumstances of termination. These circumstances include termination initiated by the employee, mutual agreement, termination without cause, and termination with cause, whether in an indefinite or fixed-term agreement. Typically, severance pay is calculated as one month's regular salary for each year of completed service.

Notice Period

Under Bolivian labor law, there is no required notice period.

Probation period

Typically, probation periods for permanent employees in Bolivia range from 1 to 3 months.