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Workforce Solutions and EOR Services

Hire and Manage your Workforce in Paraguay

The Paraguay economy is set to rebound in 2021

Thanks to its sound and predictable macroeconomic bases; solid financial system; poverty reduction and other policies, Paraguay has seen an extraordinary growth in the past few years, paving the way to economic success with social inclusion (World Bank). According to the IMF, in the past two decades, Paraguay has seen strong growth and a sharp reduction in poverty. Strong GDP growth was the result of sound macro policies (with low inflation and low fiscal deficits and debt) and an agricultural commodity price boom which spilled over to the non-tradable sector. Crédit Agricole Group predicts that GDP growth will probably pick up to 4% in both 2021 and 2022, subject to the post-pandemic global economic recovery. Paraguay was ranking #125 in the World Bank’s 2019 Ease of Doing Business index (Sources: Focus Economics, World Bank, IMF, and Crédit Agricole Group).

XML employs workers for you in Paraguay. Quick, Simple, Compliant

A trusted professional employment organization with in-depth knowledge of the market in Paraguay, XML International provides you with end-to-end personalised solutions to recruit and manage remote team members for your activities in Asuncion or any other city in Paraguay, regardless of the size of your organisation or your industry.

Employees will be employed pursuant to local labour laws, and all required social security and taxation will be paid to the local Authorities.

Paraguay Country Information

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1.7  If, as a result of Our failure to exercise reasonable care and skill, any digital content from Our Site damages your device or other digital content belonging to you, if you are a consumer, you may be entitled to certain legal remedies.



Local Currency

Paraguayan Guarani PYG 

Official Languages

Spanish and Paraguayan Guarani

Paraguay Minimum wage

Minimum wage in Paraguay is  2.289.324 PYG

Paraguay Normal working hours

The standard working week in Paraguay is 48 hours a week.

Paraguay Annual leave

Vacation days are earned after staff have worked for an employer for a total of one year. Employees are entitled to 12 days if they have worked from one to five years, 18 days for five to 10 years, and 30 days for 10 years or more. 

Paraguay Sick leave

For sick leave, employees that have a justified illness may take medical leave with the salary paid by the government at 50% of the salary. Paraguay has both maternity and paternity leave with maternity leave for 18 weeks paid by IPS at 100% of her salary and paternity leave for 2 weeks after the delivery date with the salary paid by the employer.

Paraguay Maternity leave

Maternity leave lasts for 18 weeks and IPS pays the women concerned 100% of their salary. 

Paraguay Paternity leave

Paternity leave may be taken for two weeks after the baby’s delivery date, and the father’s salary is paid by his employer.

Paraguay Notice Period

In the event of dismissal for a serious cause, the advance notice may be made in any form, but the corresponding notification must be proven in writing or authentically.

During the period of notice and without decreasing the salary, the certified dismissal worker shall enjoy a two-hour daily leave within the legal working day or one day a week, at his discretion, to seek new work.

At the option of the worker, he may make continuous use of all the corresponding leave time.

The employer who has not given the notice or gave it without complying with the legal requirements is obliged to pay the worker an amount equivalent to his salary during the period of the notice.

In the event that the worker fails to comply with this requirement, he must pay his employer an amount equivalent to half the salary that corresponds to the end of the notice.

Paraguay Probation period

A probation period can be established to assess the skills of the worker and verify the appropriateness of the conditions of the contracted work.

This period will have a maximum of the following duration:

  • Thirty days for domestic service personnel and unskilled workers. 
  • Sixty days for skilled workers or apprentices; and, In the case of highly specialized technical workers, the parties may agree on a different period from the previous ones, according to the modalities of the contracted work. 

The probation period will be remunerated in accordance with the provisions of the respective contract. If at the end of that, none of the contracting parties express their wish to terminate the employment contract, it will continue in the agreed form.

In the event of a new contract between the same contractors and for the same type of work, a new trial period cannot be established.

Paraguay VAT

The standard VAT rate is 10%.

(Sources: Deloitte, Mondaq, Globalpayrollassociation)

Unlock your business potential in Paraguay with XML International.

If you want to benefit from XML employment expertise in Paraguay, we invite you to fill the form below and we’ll get back to you shortly.

XML employs workers for you in Paraguay

Quick, Simple, Compliant

XML International, one of the best workforce solutions and employer of record services providers for Paraguay, supports the set-up and the management of your international workforce for all your activities in Paraguay. Our invaluable input consists of streamlining and handling for you the complete employment lifecycle of your teams in Paraguay. We give you all the keys to handle you staff in Asuncion or any city in Paraguay. XML’s knowledge of Paraguay labour laws, tax and social security system, and employment regulations allows you to tackle the challenges of local compliance in Paraguay, navigate all the local complexities and avoid pitfalls.

The Best Employment Outsourcing Solutions for Paraguay

Smart Management of your Employees in Paraguay

Among our top priorities, compliance with the Paraguay employment regulations and labour laws is number one. In addition to talent acquisition, recruitment services, and workforce management, we also ensure that our clients’ workforce management in Paraguay is aligned with tax and social security rules and the latest immigration processes, including visas and work permits.

Here is the list of our core services supporting your activities in Paraguay.

• GEO Services for Paraguay (PEO and EOR)

• Contingent Workforce Services for Paraguay

• Managed Solutions Programs for Paraguay

• RPO & Staff Mobilization for Paraguay

Do Business in Paraguay, with or without creating your local legal entity

Take advantage of the targeted outsourcing solutions proposed by XML International for your expansion into Paraguay or for your employees already based there. We offer a comprehensive series of bespoke and scalable outsourcing solutions specially designed for the Paraguay market.

 They range from professional employer organization employment (PEO), employer of record, and contingent workforce employment services, to help you grow effortlessly and successfully in Paraguay without any complications. We can also help you source, recruit, and onboard new team members locally, even if you don’t have an office in Paraguay.

XML provides you with everything you need to start doing business in Paraguay or to optimize your business if you are already operating there, leading to significant bottom-line savings and getting your business activities up and running in just days. Get in touch with the XML team to learn how we can boost your activities in Paraguay in a cost-effective way. 

Get started now and make the most of business in Paraguay today!

Local. Globally.

XML has expertise and resources to meet your organization’s workforce needs wherever, and in whichever field these might be.