South America


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Employer of Record (EOR) in Paraguay

What you'll learn

  • Country Introduction
  • Employment Terms
  • Minimum Wage and Working Hours
  • Statutory Leave Laws
  • Termination Process
  • Additional Information
Paraguay Introduction

Paraguay is a landlocked country in South America bordered by Argentina, Brazil, and Bolivia. The country is divided by the Río Paraguay into 2 well differentiated geographic regions, the eastern region and the western region. The majority of Paraguay's population is mestizo, and Guarani culture remains widely influential in the country.

Employment Terms

The monthly minimum wage in Paraguay is PYG 2,550,000 per month, and a standard workweek is 48 hours at 8 hours per day (for 6 days). Overtime work is aid at between 150%-200% of the regular salary and has a maximum of 3 hours per day.

Types of Leave

Parental Leave

Pregnant employees are entitled to 18 weeks of paid maternity leave, and fathers/partners are also entitled to 2 weeks of paid paternity leave after their child’s birth. Both types of leave are fully paid for by social security. Employees can also take adoption leave.

Sick Leave

Employees in Paraguay are entitled to paid sick leave for up to 26 weeks, which is paid for jointly by the employer and social security.

Paid Leave

There are 13 public holidays in Paraguay, and employees are also entitled to a minimum of 12 days of paid time off which increases the longer they work at the company (up to 30 days). Employees can also take leave for marriage or bereavement.

Termination Process


The termination process depends on the employment contract and reason for termination. Notice of termination must be delivered in writing. Employers cannot unlawfully dismiss any employees who have worked at their company for more than 10 years, only for a just cause.

Notice Period

The mandatory notice period for terminations is at least 1 day.

Severance Pay

If applicable, severance pay in Paraguay is dependent on the employee’s length of service at the company. It is usually calculated as 15 days of pay for every year of service, with a maximum payment of 50% of the employee’s yearly salary.

Additional Information

It is mandatory to give out 13th-month salary payments in Paraguay, which are equal to 1 month of salary and paid at the end of the year.

Spanish, Guaraní
Paraguayan Guaraní (PYG)
Capital City:
7.3 Million
Cost of Living Rank:
VAT (Valued Added Tax):
Employer TaxES

★  16.5% - Social Security

Get Started in 3 Steps


Remote candidate

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


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.


Onboarding & Admin

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

Same-day onboarding
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Available in 180+ countries
How Remofirst employs in Paraguay

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 Paraguay 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), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Paraguay are paid on time in Paraguayan Guaraní (PYG). 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 Paraguay, they can speak with our customer support team to get answers from our team of experts.