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Employer of Record Bolivia
Hire staff and expand your business in Bolivia with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Bolivia designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Bolivia. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Bolivia takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Bolivia
A Brief Guide to Bolivia
Bolivia, renowned for its rich cultural diversity and awe-inspiring landscapes, is situated in the heart of South America. As a presidential republic, the country is steeped in rich history and vibrant traditions. From the stunning Andes mountains to the expansive Amazon rainforest, Bolivia offers a unique mix of natural beauty. A member of the United Nations and other regional cooperative groups such as the Union of South American Nations, Bolivia plays a critical role in the international community.
Category | Information |
Location | Central South America |
Capital | Sucre (constitutional capital), La Paz (administrative capital) |
Official Language | Spanish, Quechua, Aymara, Guarani, and 33 other native languages |
Area | 1,098,581 square kilometers |
Population | Approximately 11 million |
Currency | Boliviano (BOB) |
Major Cities | Santa Cruz de la Sierra, El Alto, La Paz, Cochabamba |
GDP (2023) | Approximately $45 billion USD |
Major Industries | Mining, hydrocarbons, agriculture, manufacturing |
Business Culture
Business Culture in Bolivia
Bolivia’s business culture puts a strong emphasis on relationships and respect for hierarchy. It is common to engage in friendly conversation before delving into business matters. Bolivians value punctuality, but it is also common for meetings to start late and last longer than scheduled. It’s crucial to show respect for senior positions, and decisions are typically made at the top levels of an organization. Building strong relationships is key to successful business dealings in Bolivia.
Payroll and Taxes
Payroll and Taxes in Bolivia
In Bolivia, employers usually pay a Christmas bonus equal to one month’s salary, typically paid in December.
Employee Taxation
Bolivian income tax is paid at a flat rate of 13%.
Employees must also make mandatory contributions towards social security as follows:
Fund Type | Percentage |
Social Security | 12.71% |
Pension Fund | 12.71 – 18.71% |
Employer Taxation
Employers in Bolivia are also responsible for various employer costs, which may include:
Fund Type | Percentage |
Social Security | 14.71% |
Housing Fund | 2% |
Pension and Healthcare
Bolivia Pensions
Bolivia’s pension system mandates contributions from employees only, with contributions varying from between 12.71% – 18.71% of the employee’s gross salary.
Healthcare in Bolivia
Bolivia’s healthcare system, the Universal Health Care System (Sistema Único de Salud), provides comprehensive healthcare services to its residents. Both employees and employers contribute a percentage of their salaries to fund the system.
Employment Law
Employment Law in Bolivia
Relevant Legislation: Bolivia’s labour laws, primarily governed by the General Labour Act, the Bolivian Constitution, and numerous other decrees and resolutions, play a pivotal role in shaping employment practices.
Employment Contracts: Employment contracts in Bolivia can be either verbal or written, but a written contract is advisable for any employment duration exceeding three months. Key employment terms like position, wage, and duration of work should be explicitly stated in the contract.
Working Hours: Standard work hours in Bolivia do not exceed 48 hours per week or 8 hours a day. Work done over these hours is generally considered overtime and is subject to compensation at a higher rate.
Overtime: Any work performed beyond the normal work hours is considered overtime and should be paid at a rate of 50% above the regular wage for the first 2 hours and 100% for additional hours.
Leave:
Bolivian law mandates various types of leaves, such as:
- Annual leave: After one year of continuous service, employees are entitled to 15 consecutive calendar days of paid annual leave.
- Maternity leave: Women are entitled to 90 days of paid maternity leave, 45 days before and 45 days after childbirth.
- Sick leave: Sick employees are entitled to take leave, the payment of which depends on their social security coverage and the length of the illness.
Termination: Termination procedures depend on the type of contract and the reason for termination. Notice is typically required, and unfair dismissals can result in compensation or reinstatement.
Severance Pay: Employees who have their contracts terminated for reasons other than gross misconduct are typically entitled to severance pay. The amount depends on the length of service, with an increasing scale set by law.
IMMIGRATION
Work Permits in Bolivia
Bolivia’s immigration process is systematic and mirrors global standards. Prospective immigrants usually need a specific purpose visa (Visa de Objeto Determinado) for relocation motives such as work, education, or family reunion.
Bolivia offers several types of work permits for foreign nationals aiming to work in the country. The required permit type depends on the nature of work, qualifications of the applicant, and the duration of the stay. It’s worth noting that citizens of some countries, like Commonwealth nations, may not require a visa for short stays but will need one for employment or long-term stays.
Public Holidays
Bolivia Public Holidays
Holiday Name | Date |
New Year’s Day | 1st January |
Plurinational State Foundation Day | 22nd January |
Carnival | Varies |
Good Friday | Varies |
Labor Day | 1st May |
Corpus Christi | Varies |
Independence Day | 6th August |
All Saints’ Day | 2nd November |
Christmas Day | 25th December |
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The Benefits
Bolivia Employer of Record Benefits
When you choose Agility EOR to expand in Bolivia, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Bolivia so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Bolivian authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Bolivian payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.