Paraguay
Capital: Asuncion
Currency: Paraguayan Guarani- PYG
Paraguay Labor Law and Employment Policy Overview
Employment Law Overview
- Key Laws and Regulations:
- Labor Code (Código del Trabajo)
- Social Security Law (Ley de Seguridad Social)
- Occupational Accident Insurance Law (Ley de Seguros de Accidentes del Trabajo)
- Legal Characteristics:
- Aims to protect employee rights and promote job stability
- Establishes minimum wages, working hours, vacations, and social security benefits
Employment Contract Requirements
- Contract Types:
- Fixed-term contracts
- Indefinite-term contracts
- Contractual Provisions:
- Must include job description, remuneration, working hours, benefits, etc.
- Language and Currency:
- Contracts must be in Spanish and Paraguayan Guaraní (PYG)
Working Time Regulations
- Standard Working Hours:
- 48 hours per week, 8 hours per day
- Rest Days and Breaks:
- Minimum of 24 hours of rest per week
- Minimum of 1 hour of rest per day
Vacation Policy
- Annual Leave:
- 1-5 years of service: 12 days
- 5-10 years of service: 18 days
- 10+ years of service: 30 days
- Public Holidays:
- 12 national public holidays
- Special Leaves:
- Sick Leave: Paid sick leave for up to 26 weeks
- Maternity Leave: 18 weeks of fully paid maternity leave
- Paternity Leave: 2 weeks of paid paternity leave
Employee Dismissal and Termination
- Notice Period:
- 1 day
- Severance Pay:
- 15 days of regular salary for each year of service, up to a maximum of 50% of annual salary
- Unfair Dismissal Protection:
- Employers cannot dismiss employees with over 10 years of service without just cause
Taxation
-
Personal Income Tax:
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Salary Range Tax Rate 0 - 30,000 0% 30,000 - 45,000 10%
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Social Security Contributions:
- Employee: 9%
- Employer: 16.5%
Health Insurance
- Insurance Policy:
- Employees must participate in the public healthcare system
- Coverage:
- Basic medical services
Compensation and Benefits
- Minimum Wage:
- 2,298,324 PYG/month
- Compensation Structure:
- Base salary, bonuses, allowances
Work Permits and Visas
- Permit Requirements:
- Foreigners require work permits
- Application Process:
- Apply through the Paraguayan Immigration Department
Confidentiality and Non-Compete Clauses
- Enforceability:
- Confidentiality and non-compete clauses are enforceable in Paraguay
- Common Provisions:
- Restrict employees from using or disclosing confidential information after leaving employment
- Restrict employees from working for competitors after leaving employment
Training and Development
- Legal Requirements:
- Employers must provide safety training and skills development training to employees
- Government Support:
- Government provides training subsidies and programs
Workplace Diversity and Inclusion
- Legal Requirements:
- Prohibits discrimination based on race, gender, religion, or other protected characteristics
- Enforcement Measures:
- Government agencies responsible for enforcing anti-discrimination laws
Remote Work Policy
- Legal Framework:
- No specific legal framework for remote work in Paraguay
- Tax and Insurance Implications:
- Remote work may impact tax and social security obligations
Authoritative Website Addresses
- Paraguayan Ministry of Labor: https://www.mtess.gov.py/