Paraguay EOR & PEO
Hire in Paraguay without a local entity today
As a Global EOR & PEO service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust EOR/PEO covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in Paraguay today with Gibson Watts Global.
DID YOU KNOW
- Paraguay is one of the world’s largest exporters of hydroelectric power, thanks to the Itaipú Dam, which it shares with Brazil and which provides almost all of the country’s electricity.
- It is one of only two landlocked countries in South America, along with Bolivia.
- Paraguay’s Gran Chaco region is home to unique wildlife and indigenous communities, covering over 60% of the country’s land area.
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Paraguay EOR Services
Expanding Seamlessly into South America’s Hidden Gem
Paraguay’s strategic location at the heart of South America, combined with its competitive labour costs, stable macroeconomic policies, and investor-friendly environment, make it an attractive destination for global business expansion. The country’s growing sectors include agriculture, manufacturing, and renewable energy.
By partnering with Gibson Watts Global as your Employer of Record in Paraguay, you can hire and manage employees quickly and compliantly without establishing a legal entity. We handle employment contracts, payroll, taxation, and compliance with local labour laws so you can focus on growing your business.
Working in Paraguay
Financial Year Dates
Paraguay’s financial year runs from 1 January to 31 December.
Minimum Wage
As of 2025, the national minimum wage is PYG 2,798,309 per month, based on a standard 48-hour workweek.
Standard working hours
The typical workweek in Paraguay is 48 hours, with eight hours per day from Monday to Saturday. Office-based roles often follow a 40-hour schedule.
Overtime
Overtime is compensated at a minimum rate of 150% of the normal hourly wage, increasing to 200% for work performed on Sundays or public holidays.
Holiday Allowance
Employees are entitled to a minimum of 12 working days of paid annual leave after one year of continuous service. After five years, this increases to 18 days, and after 10 years, to 30 days.
Sick Leave
Employees are entitled to paid sick leave, with the first three days covered by the employer and subsequent days by the Instituto de Previsión Social (IPS), provided a medical certificate is submitted.
Maternity & Paternity Leave
Female employees are entitled to 18 weeks of maternity leave, fully paid through the IPS system. Fathers are entitled to two weeks of paid paternity leave following childbirth.
Public Holidays
Paraguay observes the following public holidays:
- New Year’s Day
- Heroes’ Day
- Holy Thursday
- Good Friday
- Labour Day
- Independence Day
- Chaco Armistice Day
- Founding of Asunción
- Boquerón Victory Day
- Virgin of Caacupé Day
- Christmas Day
Social Contributions
Social security contributions in Paraguay are made to the Instituto de Previsión Social (IPS), which provides coverage for health care, pensions, and maternity benefits.
Employer Contributions
- Social Security: 16.5% of gross salary
Employee Contributions
- Social Security: 9% of gross salary
Employers are responsible for withholding and remitting these contributions monthly.
Income Tax
Paraguay applies a personal income tax rate of 10% for most employees, with exemptions for those earning below a certain annual threshold. Employers must withhold tax at source and remit it to the tax authority (SET).
Health Care
Paraguay offers a public healthcare system managed by the Ministry of Public Health and Social Welfare, providing access to hospitals and clinics throughout the country. The IPS also operates a network of medical facilities for insured employees. Many professionals and expatriates opt for private health insurance to ensure faster access and higher-quality care.
Visas
Foreign nationals planning to work in Paraguay must obtain a valid visa or residence permit. The main options include:
- Temporary Residence Visa: Allows foreign employees to live and work in Paraguay for up to one year, renewable.
- Permanent Residence Visa: Granted to individuals after a minimum period of legal residence, enabling long-term employment.
- Business Visa: For short-term business activities such as meetings or investment exploration.
All work-related visas require sponsorship from a local employer or business entity.
13th salary?
SYes, Paraguay has a mandatory 13th-month salary known as the Aguinaldo, which must be paid in December. It is equivalent to one month’s average salary. Learn more about 13th and 14th salaries here: 13th Salary Guide
Cultural Information
Paraguayan culture blends Spanish and Guaraní traditions, with both languages widely spoken in daily life. Music and dance play an important role, especially the Paraguayan polka and harp music, which are national symbols. The cuisine features simple, hearty dishes such as sopa paraguaya (a cornbread-style dish), chipa (cheese bread), and asado (barbecue). Family and community life are central to Paraguayan society, and hospitality is a deeply rooted value.