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Paraguay Employment Guide

Your quick guide on talent and labor compliance norms in Paraguay




Guaraní (PYG)


Guaraní, Spanish

Payroll Frequency

Weekly, Bi-Weekly, or Monthly

GDP per Capita


Employer Tax

16.5% - 17%

Talent Overview

Paraguay is a landlocked country surrounded by Bolivia, Brazil, and Argentina. The country holds a 62.9 economic freedom score, thus making it the 73rd freest country in 2022. Paraguay has seen significant growth on the economic side since 2021. It ranks 17th out of 32 in the Americas region in economic development.

Major economic hubs:

Asunción, Ciudad del Este, San Lorenzo

Skills in demand:

Engineering, Human Resources, Software/IT

Paraguay Map

Local Universities

The top local universities in Paraguay are as follows:

Paraguay Uni1

Universidad Nacional de Asunción


Local: 1

World : 1473

Paraguay Uni2

Universidad Católica Nuestra Señora de la Asunción


Local: 2

World : 5113

Paraguay Uni3

Universidad Autónoma de Asunción


Local: 3

World : 5697

Paraguay Uni4

Universidad de la Integración de las Américas


Local: 4

World : 6307

Paraguay Uni5

Universidad Columbia del Paraguay


Local: 5

World : 6510

Salary Data

The average monthly salary of jobs available in Paraguay are as follows:

Job Title Average Monthly Salary (PYG) Average Monthly Salary (USD)
Financial Manager 16,400,000 PYG 2232 USD
General Manager 14,000,000 PYG 1905 USD
Business Development Manager 13,000,000 PYG 1769 USD
Financial Analyst 10,700,000 PYG 1456 USD
Business Analyst 9,850,000 PYG 1340 USD
Project Manager 9,400,000 PYG 1329 USD
Paraguay Talentsource

Talent Sourcing Tips

Top Local Job Boards:

BuscoJobs, Opcion Empleo

Number of LinkedIn users:


Top Recruitment Agencies:

USAID, Manpower

Employing in Paraguay

This section will help employers to know about employment laws, bonuses, allowances, and more to onboard an individual in Paraguay.

Employee Contract

In Paraguay, the employment contract language must be Guaraní or Spanish. Also, the contract can be in any language both parties can understand.

Probation Period

The probation period in Paraguay is 45 days.

Public and Provincial Holidays 2023

Date Name Type
1 Jan New Year’s Day National holiday
27 Feb Heroes’ Day National holiday
6 Apr Maundy Thursday National holiday
7 Apr Good Friday National holiday
1 May Labor Day / May Day National holiday
14 May National Holiday National holiday
15 May Independence Day National holiday
12 Jun Chaco Armistice National holiday
15 Aug Founding of Asuncion National holiday
29 Sep Boqueron Battle Victory Day National holiday
8 Dec Virgin of Caacupé Day National holiday
25 Dec Christmas Day National holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual/Earned Leave 12 days Yes
Sick Leave 28 days Yes
Maternity Leave 126 days Yes


Payroll 1

Payroll Cycle

In Paraguay, the payroll cycle is Weekly, Bi-Weekly, or Monthly.

Payroll 2

Minimum Wage

The minimum wage in Paraguay is 2,289,324 PYG.

Payroll 3

Overtime Pay

The overtime cannot be extended over 3 hours per day in Paraguay. The overtime pay for the day shift is 150% of the regular wage, whereas, for the night shift or public holiday, it increases to 200%.


13th Month Pay

The 13th-month pay is mandatory in Paraguay.

Employee Benefits

  • Paid Leave
  • Maternity Leave
  • Allowances
  • Medical Benefits


Employer Payroll Tax

Contribution Commercial Entity Financial Entity
Social Security Contribution 16.5% 17%

Employee Payroll Tax

Contribution Commercial Entity Financial Entity
Social Security Contribution 9% 11%

Employee Income Tax

In Paraguay, the income tax is flat at 10% for residents with an annual income amount equal to, or more than 36 monthly minimum salaries. For non-resident employees, the income tax is flat at 20%.


In Paraguay, the standard rate of VAT is 10%.

Offboarding & Termination

Both employee and employer can terminate the employment contract; however, the termination must be done in written form. The employer cannot terminate an employee with more than ten years of service without a cause.

The notice period is seven days to fifteen days in Paraguay.

In Paraguay, the severance pay is 15 days for each service year.

Visa and Immigration

An individual will require a work visa/permit to work in Paraguay. The individual must apply with all the documents and an employment contract in the local embassy.

Paraguay Visa
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Minimum Wage

Overtime Pay

Visa & Immigration