EOR Service in Paraguay

Hire, Onboard and Pay Employees in Paraguay Quickly and Efficiently

Hiring in Paraguay at a glance

CURRENCY
Paraguayan Guarani (PYG)
working hours
8 hours per day
public/bank holidays
13 days
capital
Asunción
language
Spanish, Guarani
date format
dd/mm/yyyy
remote workers
1.2M
tax year
1 January- 31 December
minimum hourly salary
No minimum wage
CURRENCY
Paraguayan Guarani (PYG)
working hours
8 hours per day
public/bank holidays
13 days
capital
Asunción
language
Spanish, Guarani
date format
dd/mm/yyyy
tax year
1 January- 31 December
payroll frequency
Monthly
GDP
$0.00B (2022)

Employer of Record in Paraguay

Paraguay, a landlocked nation bordered by Bolivia, Brazil, and Argentina, exhibits a growing economic landscape underscored by a notable 62.9 economic freedom score, securing its position as the 73rd freest country in 2022. This economic momentum has been particularly pronounced since 2021, propelling Paraguay to the 17th rank out of 32 countries in the Americas region for economic development. A Paraguay EOR/PEO streamlines compliance with local laws and manages payroll, taxes, and HR functions, allowing companies to focus on core operations. 


Why use Paraguay EOR?

For employers unfamiliar with Paraguay’s local labor laws, navigating the country’s compliance landscape will be daunting. Many laws , such as those governing minimum wages, sick leaves, are fixed and changed based on changing macroeconomic conditions. Moreover, labor unions have a strong say in setting these terms, leading to the formation of Collective Bargaining Agreements. One unique aspect of Paraguay's labor laws is the mandatory 13th salary, which is an extra month's salary paid to employees at the end of each year.

This scene is unlike the systems in business-friendly countries. And there are no federally mandated provisions for paid time-offs in the USA - it is up to the employer to provide paid time-offs. In contrast, Paraguay’s labor laws require employers to provide 12 days of paid annual leave, which increases with tenure.

Partner with a Paraguay Employer of Record (EOR) like Gloroots to onboard local talent in under a day. With a single partner to make your hiring compliant with local labor laws, your HR operations become less complex and more streamlined. The Paraguay EOR will ensure full compliance with local employment obligations, and you can fully focus on core business functions and growth plans.

EOR Costs in Paraguay

Gloroots offers a fixed price for its EOR services.  A fixed pricing model helps you plan your hiring budgets effectively. Unlike EORs that offer variable pricing (where pricing changes with the employee’s salary), our prices are fixed no matter what the number of employees you onboard using our platform.

Key Metrics For Foreign Employers 

Paraguay ranks 91st in INSEAD’s Global Talent Competitiveness Index 2023. Policies such as the Paraguay 2030 National Development Plan and the Paraguay Advanced Digital Talent For An Inclusive, Resilient Digital Economy project focus on enhancing the employability of its citizens and developing the country’s digital talent pool.

For employers planning to hire from Paraguay, here are some key indicators of its talent competence.

Factors Global Ranking Interpretation
Rule of law 97 Indicates effectiveness of law enforcement
Labour-employer cooperation 92 Indicates positive labor-employee relationships
Reading Maths, and Science n/a Indicates average scores in OECD's survey of 15-year old students
University Ranking 70 Indicates average QS rankings
Labour productivity per employee 80 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 119 Indicates findability of skilled talent
Workforce with tertiary education 88 Indicates % of workforce with PG degrees
Digital Skills n/a Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2023

Through the Gloroots’ Recrew platform, you can discover amazing talent in Paraguay.

Why work in Paraguay ?

What’s a Rich Text element?

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Grow your team in Paraguay

Grow your team in Paraguay with Gloroots, leveraging their local expertise for seamless recruitment and successful integration into the country's dynamic business landscape. From emerging industries to skilled professionals in agriculture and technology, Paraguay offers diverse opportunities for business expansion. Partner with Gloroots to navigate the complexities and efficiently build your team in this burgeoning market.

Risks of misclassification

In Paraguay, effectively managing the challenge of "Misclassification of Workers" is paramount, given the risks associated with inaccuracies in employee categorization, such as misidentifying independent contractors or incorrectly classifying individuals as exempt from specific regulations. To navigate and mitigate these risks successfully, engaging a PEO/EOR is essential. Partnering with Gloroots, a trusted ally, ensures a dedicated commitment to strict adherence to labor laws, precise worker classification, streamlined payroll management, and comprehensive employee benefits. Entrusting these responsibilities to seasoned professionals guarantees a compliant and efficient experience within Paraguay's nuanced labor landscape, fostering operational efficiency and instilling confidence in your business endeavors in the Paraguayan market, guarding against potential pitfalls associated with worker misclassification.

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Employing in Paraguay

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution:

Employer Payroll Contribution

Tax Rate
Social Security 16.50%
Total Employment Cost 16.50%

Employee Payroll Contribution 

Tax Rate
Social Security 9.00%
Total Employee Cost 9.00%

Employee Income tax

Tax Rate: 10%

Applicability: Applies to all resident employees in Paraguay

Income Requirement: Annual income equal to or exceeding 36 monthly minimum salaries (approximately 13,000 USD annually)

Separation

Termination 

The process of termination is contingent on the terms outlined in the employment and collective agreements, influenced by the contract type and the reason for termination. Regardless, termination notices must be provided in writing by the employee. Unlawful dismissal is prohibited by employers, particularly for employees with over ten years of service, and can only occur with just cause.

Severance Pay

In Paraguay, the severance pay, if applicable, relies on the employee's tenure with the company. It is computed at 15 days of the regular salary for each year of service, with a cap at 50% of the employee's annual salary. For an employee with more than a decade of service, if an employer cannot substantiate a just cause before a labor court, the employee may either be reinstated or entitled to twice the regular severance pay amount.

Notice Period

The required notice period is one day.

Probation period

The probationary period is 30 days for unskilled employees or domestic workers and 60 days for skilled workers or apprentices.

Start Hiring in Paraguay today

Expanding your global workforce comes with a host of compliance challenges, from employment laws to data protection and diversity requirements. At Gloroots, we streamline this process with a unified platform. Our experts handle everything from employment contracts to on-time payments and compliant benefits. This way, you can concentrate on talent acquisition, while we ensure a stress-free global employment experience for both you and your employees. Connect with our experts today to kickstart your global hiring journey.

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