Your quick guide on talent and labor compliance norms in Paraguay
Capital
Asunción
Currency
Guaraní (PYG)
Languages
Guaraní, Spanish
Payroll Frequency
Weekly, Bi-Weekly, or Monthly
GDP per Capita
$6,193.36
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
Local Universities
The top local universities in Paraguay with rankings are mentioned below:
Local: 1
World : 1473
Local: 2
World : 5113
Local: 3
World : 5697
Local: 4
World : 6307
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 |
Talent Sourcing Tips
678,000
This section will help employers to know about employment laws, bonuses, allowances, and more to onboard an individual in Paraguay.
In Paraguay, the employment contract language must be Guaraní or Spanish. Also, the contract can be in any language both parties can understand.
The probation period in Paraguay is 45 days.
| 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 |
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 12 days | Yes |
| Sick Leave | 28 days | Yes |
| Maternity Leave | 126 days | Yes |
Payroll
Payroll Cycle
In Paraguay, the payroll cycle is Weekly, Bi-Weekly, or Monthly.
Minimum Wage
The minimum wage in Paraguay is 2,289,324 PYG.
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%.
Bonus
The 13th-month pay is mandatory in Paraguay.
Taxes
| Contribution | Commercial Entity | Financial Entity |
| Social Security Contribution | 16.5% | 17% |
| Contribution | Commercial Entity | Financial Entity |
| Social Security Contribution | 9% | 11% |
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.
