Paraguayan guaraní
Date Format

calendar icon Public holidays calendar


16.5% - Social Security
9% - Social Security

Minimum Wage


The monthly minimum wage in Paraguay is 2,192,839.00 PYG. From July 1, 2020, the minimum wage is set to change to approximately 2,200,000 PYG per month. 


Payroll Cycle

The pay date depends on the payroll frequency. Can be weekly, bi-weekly, or monthly, however, employees must be paid at least once a month. 

Working Hours


The standard full-time work week is 48 hours.  For employees who work nights, the work week is 42 hours. For employees who work night hours, they are compensated at 130% of the regular pay rate.    


Overtime is paid at different rates:

  • 150% of the regular pay rate for overtime during daytime hours

200% of the regular pay for overtime during night hours and public holidays.

Payroll Contributions

Social Security

In Paraguay, social security is comprised of health insurance, pension, and retirement:

  • Employer statutory contribution- 16.5% of the gross salary
  • Employee statutory contribution- 9% of the gross salary
Health Insurance

In Paraguay, healthcare is state funded. 

13th Salary

There is also an additional 13th salary equivalent to one months’ salary that is paid out in December (but must be before Christmas).


Public Holidays

There are 13 public holidays.

Maternity Leave

In Paraguay, maternity lasts for 18 weeks and is paid at a rate of 100% of the gross salary by IPS. In the event of multiple births, the woman receives an additional 30 days per child. 

Paternity Leave

A new father can take 2 weeks’ paid paternity leave after the delivery of the child.  Paternity leave is also paid out by IPS at the rate of 100% of the gross salary.


Termination Process

In Paraguay, notice of termination must be delivered to the employee in writing. 

For an employee who has been employed for over 10 years cannot be terminated for unjust reasons, they must be terminated for a just cause. 

Notice Period

Mandatory notice period is 1 day. 

Severance Pay
  • If the cause for termination is justified (misconduct or poor performance), the employee is not entitled to severance pay. It is important to note, though, that if the employee feels that they were unjustly terminated under the reason for just cause or misconduct on the part of the employer and the employer is not able to prove the reason for dismissal in a labor court, the employee is entitled to severance pay (15 days of wages for every year worked or up to half a year’s wages) as well as back pay from the date of dismissal to the date of the court ruling. 
  • An employee who is terminated without cause is entitled to 15 days of severance pay for every year of service.
  • For an employee who has over 10 years of employment with a company- If an employer is not able to prove a just cause to a labor court, the employee might either be reinstated or would have the right to double the regular severance pay. 



VAT is 10% standard rate