Overview

Capital
Asunción
Currency
Paraguayan guaraní

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Taxes

Employer
16.5% - Social Security
Employee
9% - Social Security

Minimum Wage

General
Minimum wage is Gs 1,824,056 per month (Approximately $330 USD)

VAT

General
VAT is 10% standard rate

Mandatory Benefits

Pension Fund
Employers contribute 14% of employees wages.
Employees contribute 3% of their wages.
Social Security
Employer contributes 4% of Employers must contribute 16.5% of employees wages.
Employers must withhold 9% of employee wages.

Payroll

Payroll Tax
There is no payroll tax in Paraguay.

Termination

Termination Process
In Paraguay, employers only have to provide 1 days notice, but it must be written.
Advance Notice
Employees must provide advance notice determined by the length of their employment.
* Up to 1 year must provide 30 days.
* 1-5 years must provide 45 days.
* 5-10 years must provide 60 days.
* 10+ years must provide 90 days.
Severance Pay
For unjust dismissal, employees are entitled to 15 days salary for each year employed. If an employee is dismissed with just cause, employees receive payments determined by the length of their employment.
* 9 months - 4 years of employment receives 0.25 months salary.
* 4 - 20 years of employment receives 1 months salary.
* Employees of over 20 years have "Job Stability" and can only be dismissed with just cause proven in a court. If no just cause is found the employee can either chose to be reinstated or take 2 months pay plus double severance pay equal to 23 months.