Employment contracts can be either written or oral ex


Salaries are paid semi-monthly.

HR & Labor

Working Hours: Full time employment is considered 48 hours weekly, and 8 hours a day.
Minimum Working Age: "Light work" is allowed for those between 12-14. All non-hazardous work is permitted for adolescence between 14-18.


In order to work legally in Paraguay, one must obtain either a temporary or permanent residence in addition to an identity card.


Employees must receive a 13th salary paid before December 31 of each year.

Minimum wage

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

Pension fund

Employers contribute 14% of employees wages.

Employees contribute 3% of their wages.

Severance payments

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.

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.

Termination procedure

In Paraguay, employers only have to provide 1 days notice, but it must be written.

Sick Days

Employees are entitled to 5 days paid sick leave yearly.

Vacation Days

* 1-5 years of employment receives 12 vacation days annually.
* 5-10 years of employment receives 18 vacation days annually.
* 10 + years of employment receives 30 vacation days annually.

Public Holidays

There are 13 public holidays.


VAT is 10% standard rate

Payroll Tax

There is no payroll tax in Paraguay.

Social Security

Employers must contribute 16.5% of employees wages.

Employers must withhold 9% of employee wages.