Find your employer of record in Paraguay

In essence, you will need a business visa to travel to Paraguay for work. However, Paraguayan authorities will not demand you to have one if your country is exempt from it.

In this sense, the types of visas you can request in Paraguay are the following:

• Provisional Residence Permit: It applies to employees working for foreign companies. You can get one valid for six months and renew it for additional six months.
• Temporary Residence Permit: Foreigners can get this visa if they sign an employment contract with a business incorporated in Paraguay. Furthermore, it is valid for a year, and you can renew it for up to six years if your employment area requires it.
• Permanent Residence Permit: It allows you to live and work in any location in Paraguay indefinitely.

On the other hand, all visas in Paraguay demand an application process that can last up to 90 days.

Finally, remember to use your business visa to enter the country. After that, you must apply for a residence permit during the first six months of your stay. Above all, your application must include an employment confirmation.

In Paraguay, the standard VAT rate is 10.00%.

Termination Process

Indeed, no employment laws in Paraguay dictate how the termination process should be. Instead, it depends on employment agreements, collective agreements, and the Paraguayan workers confederation. Moreover, the reason for termination and the type of contract can also modify the termination process.

Last, any employer with an EOR company or other can unlawfully dismiss employees with a service length of more than ten years. They only can do so through a just cause. 

Notice Period

Contrary to the termination process, it is mandatory for employees in Paraguay to use a notice period of one day.

Severance Pay

In Paraguay, employers can calculate the financial compensation related to employment termination according to their length of service. Therefore, EOR providers in Paraguay must provide a severance pay of 15 days’ salary for each year of service, with a maximum of 50% of the annual salary.

Furthermore, severance pay can be doubled if Paraguayan employees have a service length of more than ten years. Nevertheless, it only applies to workers without a just cause to a labor court.

Probation Period

An Employer of Record Company in Paraguay must use a probationary period for new employees. However, it will depend on the employees’ level of qualification. For instance, unqualified employees in Paraguay have a probationary period of 30 days. On the contrary, it increases to 60 days for qualified workers.

Paid Time Offs

When you use Contract Management Services in Paraguay, you must know that your employees deserve paid leave of 12 working days until their service length is five years. Moreover, such a period increases to 18 days if they work in a single organization for between five and ten years.

Finally, employees in Paraguay can increase their paid leave to 30 days. However, it involves a continuous service length of more than ten years with the same employer.

Public Holidays

There are 13 national holidays throughout the year.

Vacation Holidays

There are 12 vacation holidays throughout the year.

Sick Days

In essence, Paraguayan employees must contribute continuously with their Social Security payments for four weeks to get paid sick leave. Nonetheless, employers with Employer of Record companies in Paraguay will pay it a 100% rate of the employee’s salary for up to 26 weeks.

Besides, Paraguayan workers can extend their paid sick leave for another 24 weeks in extreme cases. However, the employer and Social Security (IPS) will split the pay equally based on the employee’s regular income.