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South America

Bolivia

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Employer of Record (EOR) in Bolivia

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Bolivia Introduction

Bolivia is a landlocked country in South America that is bordered by Brazil, Paraguay, Argentina, Chile, and Peru. One third of the country is located within the Andean mountain range. Businesses that are registered in Bolivia are required to employ a workforce that consists of at least 85% Bolivian nationals (this does not apply if you employ someone in Bolivia via an Employer of Record).

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees are entitled to 90 days of paid maternity leave, where 45 days are taken before the birth and 45 are taken after. While the employer has to pay the maternity leave salary at the rate of the national minimum wage, the employer will receive a reimbursement from social security for 90%.

Employers are also mandated to grant a maternity benefit to pregnant employees that are equivalent to one month of pay, as well as nursing and prenatal subsidies equivalent to 1 month’s salary. Pregnant employees’ partners receive 3 days of time off for the birth and are protected from being terminated for one year after the birth. Adoptive parents are also protected from termination for one year.

Sick Leave

Employees in Bolivia are entitled to 26 days of paid sick leave each year, as long as they have a certificate from a medical professional. After the 5th day the employer provides sick pay at 100% of the salary rate, and then 75% is reimbursed by social security.

Paid Leave

There are 10 public holidays in Bolivia. After 1 year of service at a company, employees are entitled to 15 days of paid time off each year, which increases to 20 days after 5 years of service and 30 days at 10 years.

Wage Requirements and Working Hours

The minimum wage in Bolivia is 2,250 BOB per month, as of May 2022. Standard working hours are 8 hours per day, with a maximum of 6 working days each week (Monday-Saturday). Any work done past this amount is considered overtime and is paid out at 200% of the salary (with a general maximum of 2 hours each day).

Termination Process

Process

Employees can be terminated for just cause, which includes negligence, fraud, disclosing industry secrets, theft, etc. If there is no justifiable reason for termination, the employee can demand a severance or reinstatement.

Notice Period

There is no mandatory notice period for a termination according to Bolivian law.

Severance Pay

The severance due to an employee depends on the type of termination, and is generally calculated as one month of salary for each year at the company.

Additional Information

Bolivia requires a 13th month salary at the end of the year equal to one month of pay (not subject to tax or social contributions). A 14th month salary is also required if Bolivia’s GDP is over 4.5% (calculated in July and paid out in December).

OVERVIEW
Language(s):
Spanish, Indigenous Languages
Currency:
Bolivian Boliviano (BOB)
Capital City:
La Paz
Population:
11.6 Million
Cost of Living Rank:
102nd
VAT (Valued Added Tax):
13%
Employer TaxES
16.71%
(estimated)

★  2% - Social Fund

★  1.71% - Common Risk Insurance

★  10% - National Healthcare

★  3% - Employer Solidarity Contribution

Simplified Global HR and Payroll.
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We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

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How Remofirst employs in Bolivia

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Bolivia get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Bolivia are paid on time in Bolivian Boliviano (BOB). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Bolivia, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.