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hire in Paraguay

Paraguay PEO &
Employer of Record

SALARY PAYMENT IN  Paraguayan Guaraní (PYG)




TIME TO HIRE 24 hours

Hire and pay talents
with Horizons in
180+ countries

Simple, compliant hiring with Horizons PEO

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 PEO is the quickest and most cost-effective way to enter the Paraguay market.

Facts & Stats

PEO Platform Hire in Paraguay, and pay employees through our platform or app. PEO Cost Our Paraguay PEO solution is the most affordable on the market. Time-to-hire Fast onboarding in Paraguay, hire in as little as 24 hours.
Contracts We draft labor contracts compliant with Paraguay labor law. Local Benefits We administer all mandatory benefits and contributions in Paraguay. 180+ Countries It doesn’t stop with Paraguay — we are an international PEO
stay compliant with Paraguay labor laws

Employment Law

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.

Probationary period 60 days
Termination notice period 1 day
Severance 15 days’ salary per year of service, up to 50% annual salary
Probationary period 60 days
Termination notice period 1 day
Severance 15 days’ salary per year of service, up to 50% annual salary

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.

Hire compliantly in Paraguay without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

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:

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

DateHoliday name
1 Jan MondayNew Year’s Day
1 Mar FridayHeroes’ Day
28 Mar ThursdayMaundy Thursday
29 Mar FridayGood Friday
1 May WednesdayLabor Day / May Day
14 May TuesdayNational Holiday
15 May WednesdayIndependence Day
10 Jun MondayChaco Armistice
15 Aug ThursdayFounding of Asuncion
29 Sep SundayBoqueron Battle Victory Day
8 Dec SundayVirgin of Caacupé Day
25 Dec WednesdayChristmas 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.

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

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


A Paraguay PEO and a Paraguay EOR are two types of companies which specialize in providing human resources services to businesses in Paraguay.

The main difference between a Paraguay PEO and a Paraguay EOR is in the scope of their services.

Paraguay PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Paraguay PEO is essentially outsourcing your HR duties in Australia.

Paraguay EORs actually take over as the legal employer of your employees based abroad. Paraguay EORs become responsible for labor compliance for your employees in Paraguay.

At Horizons, we offer both PEO and EOR services in Paraguay. Get in touch now and let us know what service you are seeking.

A PEO 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.

In most cases, Horizons’ Paraguay PEO 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.

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.