Employer of record in Paraguay

We make it easy and painless to expand your business into Paraguay. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.

EOR Paraguay

Accelerate your growth into Paraguay compliantly and hassle-free

At Serviap Global we handle all employee onboarding, payroll, compliance, risk, mitigation and benefits, so you can focus on what matters most – your business.

How we can help you expand in Paraguay

As your EOR in Paraguay we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary. 

Your candidate is hired by a PEO in Paraguay provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team. 

Expand to Paraguay with Serviap Global

Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity. 

In just a few days, you can easily and safely build a presence in Paraguay, being sure that your staff will be hired in compliance with labor and tax regulations

Table of contents

Quick facts

Paraguayan Guaraní (PYG)


Payroll cycle:

Spanish / Guarani

The economy

The economic characteristics of Paraguay are those of a developing country. Paraguay welcomes foreign investment and agriculture products, alongside forestry, are a major part of Paraguay’s economy. It also has a young population and vast hydroelectric power.

Small and medium businesses

MSMEs (Micro, Small and Medium Enterprises), are the main source of job generators in Paraguay, this is true for most Latin American countries. SMEs in Paraguay are so valuable due to the ability to create jobs and further the number of businesses operating there.


There’s a population of about 7.2 million people in Paraguay. It’s considered a sparsely populated country with a young, eager, workforce. The average age is 28 years old and the literacy rate remains around 95% year after year.

Economic opportunities

According to the U.S. Department of State Paraguay has a rapidly growing, open economy with the potential for continued growth over the next decade. Major drivers of economic growth in Paraguay are the agriculture, retail, and construction sectors.

The United States is one of the largest foreign direct investors in Paraguay. More than a dozen U.S. multinational firms have subsidiaries in Paraguay, including firms in the computer, agro-industrial, telecommunications, banking, and other service industries.

Paraguay and the United States belong to many of the same international organizations, including the United Nations, Organization of American States, International Monetary Fund, World Bank, and the World Trade Organization.

Key sectors of the national economy

Agriculture industry
About 45% of Paraguay’s workforce is employed in agricultural endeavors. Wheat, corn, and cassava rank as Paraguay’s major food crops. Paraguay also produces coffee, citrus fruits, peanuts, rice, sugarcane, sorghum, beans, and sweet potatoes.

Also, the Chaco region, as well as the country’s eastern plains, are home to a dairy and ranching industry.

Energy industry
Hydropower represents almost 100% of Paraguay’s electricity. The National Electricity Administration oversees the nation’s electricity market from generation to distribution.

Manufacturing industry
The first manufacturing industries in the nation processed leather and hides from its numerous quebracho trees and abundant cattle. Now Paraguay’s primary manufacturing revolves around food and beverages, non-metallic mineral items, paper, and hides and furs.

Human talent

Paraguay is ripe for new opportunities to allow many of the people to enjoy higher levels of success than in the past. Historically a very small number of Paraguayans have had most of the country’s land and wealth.

Improvements in technology and education will help level the playing field and offer foreign businesspeople access to a previously untapped human resource.

Prominent cities for business


The largest city of Paraguay in and the country’s capital. Its only stock exchange, the BVPASA, is here. There is also no income tax for investors in Bonds of Asunción Stock Exchange, and incentives like these attract significant foreign investment into the city which is why major investment groups and companies are located here.

Ciudad del Este

Around 250 services and industrial sector companies are located here. Ciudad del Este has seen the development of a market in electronic and computer products, consumer products, and luxury items (perfumes, fine alcohols, and others).

San Lorenzo

The main banks and financial companies are located in San Lorenzo. This makes San Lorenzo the hub of Paraguay’s finances, economics, and education of the Central Department (departments are like provinces or states in other countries).

Luque was briefly Paraguay’s temporary capital city. Manufacturing companies in Luque include soap factories, distilleries, tile and brick factories, guitars and harps.

Technological ecosystem

Paraguay has access to two major rivers, the Rio Parana and the Rio Paraguay.  99% of the country’s energy is produced by hydroelectric energy.

The National Service for Professional Promotion (SNPP) offers classes for students getting ready to enter the workforce in computer programming; distance training programs; apprenticeships, business development and training for instructors.

Facilities for foreign investment

Paraguay is considered a developing country and has lots of space available for developing new business. Paraguay’s economy is stable and the people are welcoming to Americans.

Attractive tax policies are a big draw for business owners and investors; the corporate tax is 10%. VAT is also 10%.


Chipa is a bread roll made from eggs, cheese and local cassava. It’s considered a snack often found in street food stalls in the country. Another version of chipa is like a flat cake made with milk, fresh corn and cheese.

A popular herbal tea originates in Paraguay and is called Yerba mate (terere in Paraguay). It has a slightly bitter taste and packs a big caffeine punch.

Bori bori is a thick chicken broth soup including bacon fat, vegetables, and usually topped with cheesy cornmeal dumplings.

General highlights



Num. States/Provinces

17 departments and one capital district

Principal cities

Asunción, Ciudad del Este, San Lorenzo,  Luque


Spanish and Guaraní

Local currency

Paraguayan Guarani

Date format


Thousands separator format


Country dial code


Time zone



6,781,000 (2022)

Border Countries

Argentina, Bolivia, Brazil

Continental surface

406.752 km²

Fiscal year

June 30th of each year



Minimum wage

PYG$2,289,324 per month

Taxpayer identification number name in the country

Single Taxpayers Registry (RUC)

What you need to know about employing personnel in Paraguay:

Laws and agencies that regulate labor relationships

LawsBrief description
Constitutional framework of ParaguayThe constitution states that Paraguay is a representative and pluralist democracy and that government is exercised by the separate powers of the legislative, executive, and judiciary bodies.
Labor codeThe Labour Procedural code
Tax codeEl Registro Único del Contribuyente
Social Security in ParaguayIt encompasses a general health program, a pension system for the urban and rural working population, a system of protection in unemployment and a program for the promotion of housing.

Labor contracts


Labor contracts must be in writing. And include type of work or services to be rendered and the place or places of its provision, amount, form and term of payment of the agreed remuneration.

The duration and division of the working day.

Also, employee benefits such as quarters, food and uniforms, if the employer is obliged to provide them and estimates of their value and the terms agreed between the parties.

The International Labor OrganizationThey are members of the ILO.
Work hours48 hours long for daytime work and 42 hours per week for nighttime work.

Basic requirements

Labor contracts must be in writing and must contain the following:

  • Place and date of execution
  • Full name
  • Age
  • Sex
  • Marital status
  • Profession or occupation
  • Nationality and domicile of the parties


Legal benefits in Paraguay

Minimum wagePYG$2,289,324 per month
WagesPaychecks can be given out bi-weekly, weekly or monthly in the local guaranties currency.

The maximum is 57 hours per week and 3 hours per day if the employee is required to work overtime or work on holidays.

After 48 hours per week, they are paid at a compensation rate of 150% of the employee’s regular pay for daytime hours and 200% for nights or holidays.

Christmas salaryIt’s paid in one lump sum and is due at the end of the year.
Occupational risk insuranceParaguay follows the OSH legislation for more than 150 workers and an array of stringent rules about the health and safety in the workplace. Such as yearly check ups, providing a safe work environment, and protective measures.
Vacations or PTO

1-5 year employees have 12 vacation days.

10 year employees have 18 days of vacation.

More than 10 year employees have 30 days.

Sick leave is entitled with 50% of pay from the IPS and 50% from the employer.

Leaves of absence

Employees have the right to paid absences for the following things:

Maternity leave:
18 weeks of fully paid maternity leave, compensated by Social Security upon presentation of a medical certificate. In case of multiple births, the mother receives an additional 30 days leave for each child. Six additional weeks if the employee suffered an illness during or at childbirth, the employer may grant six additional weeks of leave.

Adoptive mothers:
18 weeks of maternity leave if the adopted child is less than six months old. If the child is older than six months, it is 12 weeks.

Paternity leave:
The father is entitled to two weeks of paid paternity leave after the birth. Paternity leave is compensated by the Social Security Institute at the rate of 100% of the worker’s ordinary salary.

Employees are allowed three days off for their wedding.

Death of a father, mother, spouse or children, allows the worker three days of leave.

Employers contribution or labor cost
16.5% by the employer in payroll contributions goes to Social Security.

Annual taxable income and corporate tax rates
Almost all taxes are 10% on all income, and sales tax rate. This makes it easy to remember and calculate what you will have in your pocket. In some circumstances, in the lower income bracket, tax is a mere 8%.

In Paraguay there is a system of coverage for work accidents. Law No. 5.804 establishes the national system for the prevention of occupational risks.

Public holidays

The Labor Code provides for public holidays that are observed in Paraguay:

DateHoliday Name
1 JanuaryNew Year’s Day
1 MarchDay of Heroes
Thursday before EasterHoly Thursday
Friday before EasterGood Friday
Easter SundayEaster Day
1 MayLabour Day
14 MayIndependence Day
15 MayIndependence Day Holiday
12 JuneChaco Armistice Day
15 AugustFounding of Assumption
29 SeptemberBoqueron Battle Victory Day
8 DecemberVirgin of Caacupe Day
25 DecemberChristmas Day
31 DecemberNew Year’s Eve


Type of terminationBrief description
Justified dismissal15 daily salaries for each year of service or a little more than 6 months.:
Compensation for lack of noticeThe employer who has not given notice or has given it without complying with the legal requirements, is obliged to pay the worker an amount equivalent to his salary during the term of the notice.
Unjustified dismissalIf the employee can rule an unjust dismissal they are entitled to severance pay of 15 days of wages for every year they worked there, up to 6 months. Plus, back pay from the date of dismissal to the date of the trial.
Voluntary resignationThere is a mandatory notice of 1 day.

Other rules upon termination include

Such notice must be given in writing. The process of termination itself varies depending on the Employment Agreement and the Collective Bargaining Agreement and is based on the type of contract and the reason for termination.

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