Find your employer of record in Bolivia
Bolivia
Boliviano (BOB)
Currency
monthly
Payroll Frequency
to 16.71
Employer Tax
With 2 clicks, start your journey to Hire a contractor or remote employees in Bolivia without a entity set up.
Overview
Capital
Currency
Date Format
Fiscal Year
Reviews
La Paz
Boliviano (BOB)
DD/MM/YY
January 1st-December 31st
0 / 5 Star (0 Reviews)
Write ReviewFind your employer of record in Bolivia
Bolivia
Boliviano (BOB)
Currency
monthly
Payroll Frequency
to 16.71
Employer Tax
Overview
Capital
Currency
Date Format
Fiscal Year
Reviews
La Paz
Boliviano (BOB)
DD/MM/YY
January 1st-December 31st
0 / 5 Star (0 Reviews)
With 2 clicks, start your journey to Hire a contractor or remote employees in Bolivia without a entity set up.
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Overview
Boliviano (BOB)
CURRENCY
La Paz
CAPITAL
monthly
PAYROLL FRECUENCY
10
PUBLIC HOLIDAYS
to 16.71
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Bolivia
Employer
Company Payroll Contributions
In essence, Bolivian companies make payroll contributions under four concepts: Housing, Professional Risk Premium, National Healthcare, and Employer Solidarity. Indeed, the percentage is as follows:
0% - 2%
Housing Contribution
0% - 1.71%
Professional Risk Premium Contribution
0% - 10%
National Healthcare Contribution
0% - 3%
Employer Solidarity Contribution
0% - 16.71%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 10%
Long-term SSO Contribution (It relates to Disability, Old Age, and Death)
0%- 1.71%
Common Risk Contribution
0%- 0.50%
Common Risk Contribution Pensionary Fund Commission Contribution
0%- 0.50%
Solidarity Contribution for Pension
0% - 12.71%
Total Employee Cost
Employee Income Tax in Bolivia
13%
Flat Rate
Payroll Contributions in Bolivia
Payroll Cycle
Indeed, companies like a Contractor Management Services provider in Bolivia make salary payments through payroll outsourcing companies once a month. Furthermore, employees in Bolivia must receive their wages on the last working day of the month.
13th Salary
In summary, payroll outsourcing in Bolivia involves making mandatory 13th-month payments. Indeed, Bolivian employees receive a month’s salary by the end of the year. Above all, they call it a Christmas bonus, and it is not subject to social security contributions and tax.
On the other hand, employers could also have to pay a mandatory 14th-month when GDP is above 4.50%. In most cases, payroll outsourcing in Bolivia pays the 14th-month salary regardless of being subject to a cap of 25.00% of their profit.
Employee Benefit in Bolivia
Visa and work permit in Bolivia
In essence, you will need to register with the Labour Ministry to work in Bolivia as a foreigner.
Above all, you must register your work agreements with the Bolivian Labor authorities within 90 days of signing. Therefore, you will not need work permits as a foreign employee.
Finally, it is worth mentioning that you will need a special-purpose visa. Indeed, it will allow you to sign the agreement and a one-year residence visa.
VAT in Bolivia
In Bolivia, the standard VAT rate is 13.00%.
Working Hours in Bolivia
General
In short, the regular work week, according to employment laws in Bolivia, is 48 hours long and involves working up to 8 daily hours six days a week.
Overtime
Indeed, every time you outsource your payroll in Bolivia you should know that all working hours surpassing the standard hours are overtime. Therefore, employers in Bolivia must pay them according to the terms of their employment contract/collective agreements.
On the other hand, Bolivian employees have a maximum of two hours a day of overtime. Furthermore, EOR services in Bolivia indicate that employers must pay them a compensation rate of 200% of their regular salary.
Working Week
Monday to Saturday (It is worth mentioning that, for Bolivian employees, Saturdays could be a half day of work)
Employee Termination in Bolivia
Termination Process
Indeed, article 16 of the General Labour Law in Bolivia dictates how the termination process should be. Above all, employers in Bolivia can perform it without notice by providing sufficient cause for it.
Last, any employer with an EOR company or other must receive a notice of termination in writing. Then, he must submit it to the relevant government authorities in Bolivia.
Notice Period
On the contrary, it is not mandatory for employees in Bolivia to use a notice period.
Severance Pay
In Bolivia, employers can calculate financial compensation depending on the type of employment termination. Ergo, it can vary depending on if it is a termination by the employee or by mutual agreement.
Furthermore, payroll outsourcing companies in Bolivia can calculate severance pay as one month’s regular salary for each year of service.
Probation Period
Indeed, an Employer of Record Company in Bolivia must use a probationary period for new employees. However, it is regularly between one and three months.
Employee Leaves in Bolivia
Paid Time Offs
When you use Contractor Management Services in Bolivia, you must know that your employees deserve a minimum paid leave of 15 days a year. Moreover, such a period involves the completion of 1-year service and does not include public holidays.
Finally, Bolivian employees can increase their paid leave to 30 days. However, it involves a continuous service length of more than ten years with the same employer. In short, if it is below ten years and above five years, it will be 20 days.
Public Holidays
There are 10 national holidays throughout the year.
Vacation Holidays
There are 15 vacation holidays throughout the year.
Sick Days
In essence, Bolivian employees must provide a medical certificate within 48 hours of the beginning of the sickness to get 26 weeks of paid sick leave per year.
Moreover, employers with Employer of Record companies in Bolivia will pay a 100% rate of the employee’s salary from the 5th day of the sickness.
Paternity Leave
Employer of Record in Bolivia involves advising workers about their paternity leave. Hence, one piece of advice is that they can get three paid days' leave to assist their spouse after birth.
Paternal Leave
Indeed, you will not find payroll outsourcing or other companies in Bolivia giving parental leave. After all, it is not mandatory by employment laws.
Other Leave
In essence, Bolivian employees cannot get additional statutory leaves.
Maternity Leave in Bolivia
Undoubtedly, everyone in your Contractor Management Services Company in Bolivia will be happy about your pregnancy. Besides, they will give you 90 days of paid maternity leave. Indeed, you can get 45 days before the childbirth and 45 days after.
Moreover, female Bolivian employees will get a maternity benefit of 100% of the national minimum wage.
There are 90 leave throughout the year.
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