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Employer of Record Paraguay

Hire staff and expand your business in Paraguay with our fully-managed EOR Service

How we can help

Unrivalled Employer of Record Service in Paraguay designed to expand your business seamlessly

Agility EOR delivers services for business’s looking for an Employer of Record in Paraguay. 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 Paraguay takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.

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Employer of Record in Paraguay

A Brief Guide to Paraguay

Paraguay, the land of rivers, is an intriguing country in the heart of South America, tucked between Argentina, Bolivia, and Brazil. It’s a country blessed with abundant natural resources and a vibrant culture that resonates with its people’s indomitable spirit and pride.




Central South America

Capital City


Official Languages

Spanish, Guarani


406,752 km²


~7 million


Guarani (PYG)

Major Cities

Asunción, Ciudad del Este, San Lorenzo


~$40 billion (USD)

Major Industries

Agriculture, Manufacturing, Construction, Mining

Business Culture

Business Culture in Paraguay

In Paraguay, business culture is primarily built on personal relationships and trust. Respect for hierarchy and seniority is ingrained into Paraguayan society, and this carries over into their business practices. It’s not uncommon to find decisions being made at the top, with an expectation for the directives to be executed without question. Face-to-face meetings are preferred and are usually preceded by small talk to strengthen relationships.

When it comes to attire, businesspeople in Paraguay dress conservatively, leaning towards dark-colored suits for men and suit sets or dresses for women. Punctuality is appreciated, but don’t be surprised if things run a bit late; it’s more about the relational than the transactional.

Employer of Record Paraguay
Payroll and Taxes

Payroll and Taxes in Paraguay

In Paraguay, 13th month payments are mandatory. The amount is equivalent to a months wages, and usually paid in December as a Christmas bonus.

Employee Taxation

In Paraguay, income tax is only paid by those who earn an annual salary equivalent to 36 months of minimum wage.

Gross Annual Salary (PYG Thou)

Approx USD Equivalent

Tax Rate (%)

Up to 91,800

Up to $13,000


Over 91,800

Over $13,000



Employer Taxation

Employers in Paraguay are also responsible for payments towards the social security fund, at a rate of 16.5%

Pension and Healthcare

Paraguay Pensions

The pension system in Paraguay is managed by the Social Insurance Institute (IPS), which is funded by contributions from employees and employers, as well as the government. The IPS manages both the public pension scheme and health insurance, with contributions based on an individual’s earnings. Although there are private pension schemes available, they play a smaller role in the overall pensions landscape. The pension system in Paraguay has been the subject of recent reforms aimed at improving its sustainability and coverage.

Healthcare in Paraguay

The healthcare system in Paraguay is a mix of public and private providers. The public system is administered by the Ministry of Public Health and Social Welfare, and the Social Insurance Institute (IPS), funded through taxes and contributions from workers and employers. It offers a range of services from preventative care to complex treatments, but is often stretched thin, particularly in rural areas.

In contrast, the private sector boasts higher quality care with well-equipped facilities and shorter waiting times. It’s largely used by those who can afford private health insurance or out-of-pocket expenses, often in the more urban areas like Asunción. While the private sector offers a higher standard of care, the public sector serves as a safety net for those who cannot afford private care. Despite the challenges, strides have been made to improve the health system, with initiatives focused on bolstering infrastructure, expanding coverage, and enhancing service quality.

Employer of Record Paraguay
Employment Law

Employment Law in Paraguay

Relevant Legislation: The main law governing labor and employment in Paraguay is the Labor Code of 1993 (Código Laboral). Additional guidelines can be found in various decrees, resolutions, and conventions.

Employment Contracts: In Paraguay, employment contracts can be verbal or written, but certain types, such as fixed-term contracts, must be in writing. Both types of contracts are legally binding and governed by the Labor Code.

Working Hours: The standard working week in Paraguay is 48 hours, spread over six days. Employees are entitled to a rest period of 24 consecutive hours every week, generally on Sunday.

Leave: Employees in Paraguay are entitled to paid annual leave of 12 working days after one year of service, and 18 working days after five years. Maternity leave is also provided for 18 weeks (9 weeks before and 9 weeks after childbirth).

Overtime: Overtime is considered any work beyond the regular 48-hour workweek. It must be paid at a rate of 50% above the normal rate for the first two hours and 100% thereafter. The law restricts overtime to a maximum of 3 hours a day or 30 hours a month.

Termination: An employee can be terminated for reasons such as misconduct, incompetence, or economic reasons. Termination must follow due process, often including warnings and an opportunity to improve performance.

Notice: In case of termination due to economic reasons or employee misconduct, the employer must provide 30 days’ notice, or pay in lieu of notice. For resignations, employees are generally required to provide 15 days’ notice.

Severance Pay: Upon termination, employers are required to provide severance pay to employees based on their length of service. The amount is equal to the average wages of the last month for each year of service.


Work Permits in Paraguay

Immigration in Paraguay is overseen by the General Directorate of Migration, a department within the Ministry of the Interior. The country has a relatively open immigration policy, welcoming both short-term and long-term immigrants.

Foreign nationals intending to work in Paraguay usually require a Temporary Residence Visa. This visa allows an individual to live and work in Paraguay for up to two years, and it is renewable. To apply for this visa, individuals usually need to have a job offer from a Paraguayan employer who will sponsor their application. In addition to the job offer, the application process typically involves providing a range of supporting documents, including a valid passport, proof of sufficient funds, a medical certificate, and a police clearance certificate.

For business investors and entrepreneurs, there’s the Permanent Residence Visa which is particularly attractive as it provides a path to permanent residency with a relatively low minimum investment requirement. This visa is often used by foreign business people who wish to establish a business in Paraguay, as well as by retirees and others who wish to live in Paraguay long-term.

It’s worth noting that all foreign documents submitted in the visa application process must be legalized and translated into Spanish. Furthermore, once in Paraguay, foreign nationals need to register with the local authorities and obtain a Paraguayan ID card.

Employer of Record Paraguay
Public Holidays

Paraguay Public Holidays



New Year’s Day

January 1

Heroes’ Day

March 1

Maundy Thursday

March/April (Variable)

Good Friday

March/April (Variable)

Labor Day

May 1

Independence Day

May 14-15

Founding of Asunción

August 15

Boquerón Battle Victory Day

September 29

Virgin of Caacupé Day

December 8

Christmas Day

December 25

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in Paraguay is right for you?

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The Benefits

Paraguay Employer of Record Benefits

When you choose Agility EOR to expand in Paraguay, we guarantee an Employer of Record Service tailored to the needs of your business


We are on top of regulatory changes in Paraguay 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 Paraguayan 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 Paraguay 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.

Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.

Carol Oliveira