Overview

Capital Asunción

Currency Paraguayan guaraní

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Taxes

Employer 16.5% - Social Security

Employee 9% - Social Security

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.

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.

Minimum Wage

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

Payroll

Payroll Tax There is no payroll tax in Paraguay.

VAT

General VAT is 10% standard rate