Hire and pay employees in

Paraguay, hassle-free

Hire and pay employees in Paraguay, hassle-free

With Deel, your business can easily hire employees in Paraguay. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Paraguay is 3 days with Deel.


Paraguayan Guaraní



Official Language

Spanish & Guaraní

Payroll Cycle


Onboard, pay and manage employees in Paraguay with Deel.

Usually, to hire in Paraguay, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in Paraguay quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

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Our quickstart guide to hiring in Paraguay

Navigate the tabs below to learn everything you need to know about hiring an employee in Paraguay

Minimum Wage Requirements

In Paraguay, the minimum wage since July 1st 2023 is PYG 2.680.373 per month, around USD 368.

Individual Income Tax

The individual income tax ranges from 8% to 10%. Income tax is calculated according to progressive rates, and based on the income of the calendar year. Income tax calculation will vary on the minimum wage set for the calendar year.

  • Up to PYG 50.000.000 - 8%
  • From PYG 50.000.000 to PYG 150.000.000 - 9%
  • Over PYG 150.000.000 - 10%

Payroll Cost

The employer cost is generally estimated at 16.5% of the employee salary.

  • Social Security (Instituto de Previsión Social) - 16.5%
  • Family Bonus (Bonificación Familiar):
    • PYG 127,515.35 for salaries lower than PYG 5,360,746.
    • PYG 0 for salaries higher than PYG 5,360,746.
Annual costs:
13th Month Salary (Christmas Bonus) - 1-month salary
One time fees:
Medical Exam - PYG 1,090,440.3 (~USD 150)

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, and 40 hours per week. Maximum working hours per day remain 8 hours, with an extended work week until Saturday, summing 48 hours per week.

Overtime payment is mandatory. Hours outside of standard work hours agreed in the employment agreement are considered overtime.

When employee is asked to work overtime, the work hours shall not exceed of 3 hours per day or 57 hours a week.

All overtime above 48 hours are paid as:

  • 150% of the hourly rate, during the day time
  • 200% of the hourly rate, during the night time or on Public holiday

Maternity Leave

Employees are entitled to 18 weeks of paid maternity leave. Leave is divided into a prenatal period of 2 weeks and a postpartum period of 16 weeks. During this period, Social Security (IPS) will be responsible for the payment.
At the employee’s discretion, the 2 weeks of pre natal leave can be taken after birth.
Length of this period can be extended on special circumstances.

Paternity Leave

Employees are entitled to 14 calendar days of paid paternity leave after the child’s birth. The employee will receive 100% of the regular salary during this period, and the employer will be responsible for this pay. The employee cannot extend the leave.

Parental Leave

In Paraguay, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Sick Leave

Employees are eligible for paid sick leave after 36 days of employment. Sick leave is paid based on the employee’s salary for the four months preceding the sickness up to 26 weeks (as temporary work leave). It is compensated by Social Security (IPS) through the employer.

The employee will receive 50% of their regular income.

Employees are entitled for a sick leave upon provisioning the medical certificate.

Termination Requirements

Terminations in Paraguay can be complex. The process of termination differs depending on the employment employment agreement taking into account the type of contract and the reason for termination.

It is required that any notices of termination be provided in written form by the employee.

Employers are prohibited from unjustly terminating employees who have been employed for over ten years, and such terminations can only occur if there is a valid and justifiable cause.

Compliant terminations include:

  • The dismissal of the worker for just cause or without just cause (with severance payment)
  • Resignation of the worker or withdrawal for justified reasons
  • Mutual agreement
  • By expiration of the contract

Notice Period

The minimum mandatory notice period is one day, and will be increased according to the length of the employment;

  • During the Probation Period, no notice period
  • After the probation period and up to 1 year of seniority, 30 days
  • More than 1 year and less than 5 years of service, 45 days 
  • Between 5 and 10 years of service, 60 days
  • More than 10 years of service, 90 days

Severance for Employees

In Paraguay, employees who are terminated based on redundancy or unsuitability for the job are entitled to severance pay.

If an employee is dismissed without cause, whether or not prior notice was given, the employer is required to provide compensation. This compensation should amount to fifteen daily wages for each year of service or a proportional fraction for a period of six months.

After 10 years of employment, an employee can only be terminated with justified cause.

Paid Time Off

In Paraguay, both, full-time and part-time employees are entitled to a minimum of 12 working days of paid time off (PTO).

The length of leave increases with years of service in the company.

  • Up to 5 years of service, 12 working days
  • Between 5 and 10 years of service, 18 working days
  • Over 10 years of service, 30 working days 

The annual leave should be taken within 6 months of its accrual, and any annual leave not taken will be carried over to the following year.

Public Holidays

Paraguay celebrates 9 national holidays. National public holidays include:

  • New Year
  • Heroes Day
  • Labor Day
  • National Independence Day
  • Peace of Chaco
  • Foundation of Asunción
  • Battle of Boquerón
  • Virgin of Ca'acupé
  • Christmas


Onboarding takes 3 business days. Compliance documents must be completed 1 day before the start date, and a wet ink copy of the agreement is required as a medical exam within the first month of employment. 

Employment Contract Details

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties. Digital signature can be used for signatures

A contract must include:

  • Termination
  • Notice period
  • Working hours
  • Bonuses
  • Holiday leave
  • Sick leave
  • Duties
  • Confidentiality 

Contract backdating is not allowed.

Probation Period

The minimum probation period is 30 days, and the maximum probation period is 60 days.


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Hiring in Paraguay, hassle-free

With Deel, your business can easily hire employees in Paraguay with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Paraguay and 150+ countries.

Group (8)

599 USD

Management fee

Group (9)


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