Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
The monthly minimum wage in Bolivia is 2,122 BOB.
Salaries are paid on monthly basis on the last day of the month.
A 13th salary is required at the end of the year and is equivalent to one month’s pay. A 14th salary is also mandatory if the GDP is over 4.5%. Both bonuses are tax-free.
A full workday is 8 hours. In addition, the maximum number of workdays in a week is 6 days.
This does not apply to employees in managerial roles, as the workday can be extended up to 12 hours. However, an additional hour break must be given to the employee.
Overtime must be approved by the labor inspection authority. Once approved, overtime is limited to no more than 2 hours per day.
For both work during a non-working day and overtime hours, overtime is compensated at a rate of 200% of the regular pay.
If an employee has completed one year of employment, they are entitled to 15 days of paid annual leave.
For an employee who has been employed for at least 5 years, they are entitled to 20 days of paid annual leave.
For an employee who has been employed for at least 10 years, they are entitled to 30 days of paid annual leave.
There are 10 public holidays.
Employees are paid for sick leave starting from the 5th day of illness for a period of 26 weeks within a one-year time period. The employee must produce a medical certificate proving illness. If medical care can be proven to prevent permanent disability, the sick leave may be extended for another 26 weeks.
For common illnesses, an employee is entitled to100% pay. However, the employer is entitled to be reimbursed for 75% from social security.
Mothers are entitled to a total of 90 days, broken down into 45 days before the expected due date and 45 after the birth of the child. Pay given to a mother on maternity leave is 100% of the national minimum wage. However, the employer is entitled to receive a 90% reimbursement from social security.
From the 5th month of pregnancy, the mother is entitled to a prenatal subsidy and a nursing subsidy until the child is 1 year old. Both subsidies are the equivalent of one month’s salary per month.
From the date that the child is born, mothers receive job protection for 1 year.
For the birth of a child, fathers are entitled to 3 days’ pay. From the date that the child is born, fathers receive job protection for 1 year.
There are no provisions in the law regarding parental leave.
Justified dismissal- An employer can terminate an employee based a prescribed list of reasons considered to be just cause on Article 16 of the General Labor Law.
Unjustified dismissal- An employer can terminate an employer at any time for unjustified reasons. However, if this is the case, the employee can request to receive severance or demand his/her job back with the ministry of labor.
According to Bolivian labor law, there is no mandatory notice period.
Severance for unjustified dismissal is equal to one month pay for each year of service.
Employees also receive their Christmas bonus, holiday pay and bonus.
Max length of 3 months.
The standard VAT rate is 13%.