Paraguay EOR & PEO

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Hire in Paraguay

Horizons ensures day-to-day guidance to help your business navigate Paraguay labor laws and regulations. Horizons also ensures payroll is processed weekly or fortnightly (the standard periods in Paraguay), and that taxes are withheld as required.

As the Paraguay Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Paraguay Tax Office.

Partnering with our Paraguay EOR is the quickest and most cost-effective way to enter the Paraguay market.

Note, a Paraguay Employer of Record is also known as a Paraguay Professional Employer Organization (PEO).

Facts & Stats

stay compliant with Paraguay labor laws

Employment Laws

Employment contracts in Paraguay

In Paraguay, employment contracts can technically be either verbal or written, but we strongly recommend writing up a formal contract for every employee. These contracts should be written in Spanish and use the local currency of the Paraguayan guaraní. They should also cover all relevant details of the agreement, such as wage/salary, working hours, benefits, and so on.

Fixed-term

Indefinite

Working hours in Paraguay

The standard working week for employees in Paraguay is 48 hours. For overtime work, workers should be paid at 150% to 200% of normal rates.

Public holidays in Paraguay

There are a number of nationally recognized public holidays in Paraguay. Most employees receive the following days as paid leave from work every year:

Holiday Schedule in Paraguay [2024]

Paraguay has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
1 Jan Monday	New Year’s Day
1 Mar Friday	Heroes’ Day
28 Mar Thursday	Maundy Thursday
29 Mar Friday	Good Friday
1 May Wednesday	Labor Day / May Day
14 May Tuesday	National Holiday
15 May Wednesday	Independence Day
10 Jun Monday	Chaco Armistice
15 Aug Thursday	Founding of Asuncion
29 Sep Sunday	Boqueron Battle Victory Day
8 Dec Sunday	Virgin of Caacupé Day
25 Dec Wednesday	Christmas Day

Paraguay vacation leave

Employees in Paraguay accrue paid vacation over time with an employer. For between one and five years of service, they receive 12 days of paid vacation. For five to ten years, they receive 18 days of vacation, and for over ten years of service they receive 30 days.

Paraguay's healthcare system

Paraguay sick leave

Female employees in Paraguay are entitled to 18 weeks of paid maternity leave. This leave is paid at 100% of the normal salary by the Instituto de Previsión Social (IPS), a state body.

Fathers in Paraguay are entitled to two weeks of paid paternity leave upon the birth of a child. This leave is compensated by the employer.

Terminations and severance in Paraguay

In general, employees in Paraguay are entitled to between one and three months of notice prior to termination, with the exact length depending on their length of service with the employer. Severance payments may also be required and are usually paid at a rate of 15 days of normal salary per year of service. Probation periods are limited to three months.

Taxation and withholdings in Paraguay

Employers and employees in Paraguay are required to pay a percentage of salaries to social security at rates of 16.5% and 9% respectively. Income tax is on a Pay As You Earn system, meaning employers must withhold it before paying salaries.

Income tax is generally charged at 10%. Corporate tax is also 10% in most cases.

Health coverage in Paraguay

There is a public healthcare system in Paraguay, but it is also common for employers to offer private medical insurance to employees.

hassle-free Paraguay compensation & benefits

Compensation & Benefits

Compensation Laws in Paraguay

The mandatory minimum wage for full-time workers (in Jan 2024) is PYG 2,550,307 per month

Benefit management in Paraguay

Establishing a Paraguayan benefits system for your workforce can be difficult as a foreign organization. With the language and cultural differences, and a complicated, unique collection of employment laws, running a comprehensive and compliant benefits system can take be very time-consuming Horizons offers an alternative to simplify your Paraguay benefits management. Our outsourcing services will cover your benefit setup and management, helping you focus on a faster and more successful expansion.

Paraguay Employer Of Record Peo

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Hire in Paraguay

Employment Laws

Working hours in Paraguay

Public holidays in Paraguay

Compensation & Benefits

Frequently asked questions

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Hire in Paraguay in 24h without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

Frequently asked questions

What is the difference between a Paraguay PEO and a Paraguay EOR?

Generally speaking, the terms “Paraguay PEO” and “Paraguay EOR” are used interchangeably.

Can an EOR in Paraguay hire both local and foreign nationals to work in Paraguay?

An EOR in Paraguay can feasibly hire both local and foreign nationals to work in Paraguay.

However, the ability of Horizons to sponsor your foreign national employee in Paraguay may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' Paraguay EOR service take to hire an employee?

In most cases, Horizons’ Paraguay EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Paraguay.

Is it possible to get a work visa in Paraguay?

It is possible to get a work visa in Paraguay. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Paraguay are limited, however—get started today to secure your employees’ visa spot.

Paraguay EOR & PEO

Start hiring in Paraguay

Simple, compliant hiring with Horizons EOR

Hire in Paraguay

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stay compliant with Paraguay labor laws

Employment Laws

Employment contracts in Paraguay

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Paraguay

Public holidays in Paraguay

Paraguay vacation leave

Paraguay's healthcare system

Paraguay sick leave

Terminations and severance in Paraguay

Taxation and withholdings in Paraguay

Health coverage in Paraguay

hassle-free Paraguay compensation & benefits

Compensation & Benefits

Compensation Laws in Paraguay

Benefit management in Paraguay

Hire in Paraguay in 24h without your own local entity.

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