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Employ in Paraguay with ease.

Remote makes employment in Paraguay easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence.

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  • Availability

    Remote-Owned Local Entity

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

  • Capital city

    Asunción

  • Currency

    Paraguayan guaraní
    (₲, PYG)

  • Languages spoken

    Guaraní, Spanish

  • Services available

    Services available:

Facts & Stats

The Republic of Paraguay (República del Paraguay) is a South American representative democracy that’s famous for its passionate football culture, one of the world’s leading hydroelectric projects, and a fun-loving population of friendly locals. 

With a developing economy that's seen dazzling double-figure GDP growth over the past decade, Paraguay holds promise for businesses looking to expand into South America. The relatively low cost of living combined with a temperate climate and breathtaking natural beauty means that Paraguay is a tempting destination for remote workers and digital nomads.

  • Capital city

    Asunción

  • Currency

    Paraguayan guaraní
    (₲, PYG)

  • Languages spoken

    Guaraní, Spanish

  • Population size

    7,303,000 (est. 2021)

  • Ease of doing business

    Medium

  • Cost of living index

    30.72 (2021)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    10%

  • GDP - real growth rate

    -0.6% (2020)

Grow your team in Paraguay with Remote

Looking to employ workers in Paraguay? Companies hiring in Paraguay must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Paraguay on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Paraguay team. You can also pay contractors now in Paraguay with Remote in some currencies (talk to an expert now for full details).

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Risks of misclassification

Paraguay, like many other countries, treats self-employed individuals or contractors and full-time workers differently, and there are risks associated with misclassification.

If you're worried about whether to hire contractors or employees in Paraguay or anywhere else around the world, Remote can help. Our Solutions Consulting team are experts in preventing misclassification risks. Download our Contractor Compliance Checklist for a solid overview, then talk to our team about your specific situation.

Employing in Paraguay

We can help you get a new employee started in Paraguay fast. The minimum onboarding time we need is only 10 working days.

The Paraguayan Labor Code of 1993 spells out provisions for employee protections and workers’ rights for Paraguay’s workforce of 3.5 million. Employees in Paraguay enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process include minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Paraguay.

Public holidays

Below are national public holidays applicable for all regions in this country. Remote customers have access to a detailed list of regional public holidays within the Remote platform. Sign up now to access all public holiday information.

Onboarding Time

We can help you get a new employee started in Paraguay fast. The minimum onboarding time we need is only 17 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

Competitive benefits package in Paraguay

Remote can help you provide a competitive and compliant benefits package for your employees in Paraguay. If you have questions or would like to offer a custom benefit, let us know and we can help.

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Flexible work schedule
  • Pension or 401(K)
  • Life and Disability Insurance
  • Other insurance
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Calculate the cost to hire an employee
in Paraguay

Taxes in Paraguay

Learn how employment taxes affect your payroll and your employees’ paychecks in Paraguay.

  • Employer

    • 16.5%: Social Security

  • Employee

      • 9%: Social Security

  • Personal income tax rates

      • 10%: Applicable on income higher than 36 minimum salaries (approximately $13,000 USD annually)

Types of leave

Paid time off

Employees are entitled to leave annually, granted according to the tenure of their engagement with an employer.

  • 1 year of employment: 12 days leave
  • 5+ years of employment: 18 days leave
  • 10+ years of employment: 30 days leave

Public holidays

There are 13 paid public holidays according to Paraguayan employment legislation.

Sick leave

Sick employees are entitled to full wages, paid jointly by the social security agency (50%) and their employer (50%).

Maternity leave

Female employees are entitled to 18 weeks of maternity leave, with full wages paid by the social security agency (Instituto de Previsión Social). For multiple births, an employee receives an additional 30 days off for each child delivered.

Paternity/parental leave

There are no defined provisions around entitlements to paternity or parental leave.

Other leave

Bereavement leave: employees are entitled to three days of paid leave in the event of an immediate family member’s death.

Employment termination

Termination process

Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offences.

Notice period

Employers are mandated to provide at least a day’s notice before terminating an employee.

Severance pay

Employees who’re terminated without any justification are entitled to 15 days’ pay for every year of employment. On the other hand, employees who’re terminated with just cause are not entitled to a severance package – provided they don’t appeal the termination, in which case they will be entitled to the standard severance pay.

Probation periods

Probation periods in Paraguay can last anywhere from 30 days for unqualified employees or domestic workers, to 60 days for qualified workers and apprentices.

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