Paraguay’s business-friendly environment and affordable workforce make it attractive, but its labor laws demand attention. Omnipresent, as your Employer of Record (EOR), ensures compliance with tax and employment laws, so you don’t need a local entity.

We handle payroll, social security, and benefits like the annual 13th salary, allowing you to build teams in Asunción with ease. Our platform simplifies employment in Paraguay’s growing market.

• Fast, fully compliant hiring.
• Payroll in PYG, locally managed.
• Expertise in local tax regulations.
• Smooth expansion with full support.

Employers contribute 16.5% towards Social Security.

10% flat rate, with some exceptions.

Employees contribute 9% towards Social Security.

In Paraguay, employees work 48 hours per week, or 8 hours per day. Overtime is capped and compensated.

Employees are entitled to sick leave upon provision of a medical certificate. A payment of 50% regular pay is made by social security (IPS), and the other 50% is paid by the employer.

Maternity leave: 18 weeks in case of single birth paid by the IPS at a rate of 100% of the gross salary, and 30 additional days in case of multiple births.

Paternity leave: 2 weeks paid by the IPS at a rate of 100% of the gross salary.

Parental leave: No statutory provisions.

Annual leave depends on years of service and ranges between 12 to 30 days.

Severance pay is not applicable unless termination is without just cause. If termination is without just cause there is indemnification for unjust dismissal equaling 15 days' severance pay per year of service.

Termination for poor performance (or any other reason) is allowed, by written notice. Employees with over 10 years' service must be terminated for a just cause.