Paraguayan Guarani (PYG)
Spanish and Guarani
Cost of Living
30.24 (US 69.92)
(US 69.92)
Time (UTC)
UTC - 4
Presidential Republic

Hire in Paraguay without an entity and fully compliant with local labor laws

Paraguay is a bi-lingual, South American country with a 94% literacy rate. Landlocked between Argentina, Brazil, and Bolivia, Paraguay is also known as "the land of water."

A relatively small country of approximately 157,047 square miles, Paraguay is slightly smaller than California.

Get to know Paraguay

Paraguay, with its significant role in South American history, is a present-day tourist destination. The vast terrain consists of grassy plains, forested highlands, and beaches along the many lakes and rivers. And despite having no coastlines, it is home to the world's largest navy among landlocked countries. 

Guaran and Spanish customs combine to create a vibrant culture across grassy plains and forested highlands. The growing tech sector is fueled by foreign investments. The country is powered by electricity from the Itaipu Dam, a binational hydroelectric dam run by Brazil and Paraguay. Built on the Paraná River, it is the world's second-largest hydroelectric power plant. Agriculture, retail, and construction drive the export-oriented economy. 

The World Bank classifies Paraguay as an upper-middle-income economy with the following trade agreements and alliances: 

Trade Agreements

  • CAN - Andean Community of Nations
  • Mercosur - Mercado Común del Sur


  • CELAC - Community of Latin American and Caribbean States
  • G20 - Developing Nations
  • Latin Union
  • OAS - Organization of American States
  • UN - United Nations
  • USAN - Union of South American Nations
  • WTO - World Trade Organization

“Must know” if you’re hiring in Paraguay without an employer of record

Entity requirements
Mandatory hiring contracts & clauses
Different compliance risks for full-time vs. contractor employees
Mandatory probationary periods
Allowable working hours & overtime wage laws
Timecard and attendance records
Required employer payroll, labor insurance, and tax payments
Discrimination protection
Notices & termination regulations

Budgeting for Paraguay employees

Employee Classification–Full-time vs Contractor


  • Fixed working hours
  • Fixed management
  • Benefits and full compensation


  • Flexible working hours
  • Autonomous decision-making
  • No benefits
Employment Contracts
  • Can technically be either verbal or written
  • Written in Spanish and use the local currency of the Paraguayan guaraní 
  • Covers all relevant details of the agreement, such as wage, working hours, and benefits
Probation Period

Six months

Standard Working Hours & Overtime
  • Eight hours per day
  • 48 hours per week
  • Workday Overtime = paid 150% of regular wage
  • Weekend/Holiday Overtime = paid 200% of regular wage

Payroll Frequency

Weekly, bi-weekly or monthly

Wages & Bonuses
  • Minimum monthly wage = $313
  • 13th month pay

USD equivalent median salaries based on Role:

  • Data Scientist: $13,276
  • Electrical Engineer: $8,799
  • Hardware Engineer: $9,165
  • IT Manager: $9,862
  • Mobile Developer: $8,561
  • Product Manager: $10,154
  • Project Manager: $9,150
  • QA Engineer: $7,192
  • Software Engineer: $9,050
  • System Administrator: $7,183
  • UX Designer: $8,059
  • Web Developer: $7,466

Payroll Taxes & Employer Contributions
  • 9% Social Security
  • 10% Income Tax


Health Insurance 

  • Covered by Social Security tax
  • Can opt for public or private insurance

Paid leave


  • 18 weeks


  • Two weeks

Vacation/PTO days

  • Five years = 12 days
  • Five to 10 years = 18 days
  • 10 years = 30 days

Sick Days

  • 26 weeks

Additional Leave

  • Bereavement Leave
  • Marriage Leave

Additional Benefits

  • Mental Health Support
  • Life and Disability Insurance
  • Dental Insurance
  • Vision Insurance
  • Pension


Paraguay celebrates 13 national (public) holidays and multiple observances a year. 

The most important fixed date holidays are:

  • New Year's Day (January 1)
  • Heroes' Day (March 1)
  • Labor Day (May 1)
  • Independence Day (May 14 - 15)
  • Boqueron Battle Victory Day (September 29)
  • Virgin of Caacupe Day (December 8)
  • Christmas Day (December 25)

Termination & Severance

Termination Process

  • An employer cannot unlawfully dismiss employees employed for more than ten years and only for a just cause.

Notice Period

  • One day

Severance Pay

  • 15 days of regular salary for every year of service

And a few fun facts about Paraguay…

  • It takes almost a year to make one, world famous Ao po'i tablecloth. 
  • Iguazu Falls, located in the Iguazu River basin, features over 275 unique waterfall cascades, twice the width and height of Niagara Falls.
  • Due to the severe heat in Paraguay some homes do not have doors. Visitors clap their hands at open windows to announce their arrival.
  •  Paraguay has more than 1,600 soccer teams across the country!
  • One of Paraguay's best-kept secrets is Fermina Benitez, the lady with 100,000 hens.

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