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$249/month
$49/month
2% of gross salary / month
Horizons ensures day-to-day guidance to help your business navigate Paraguay labor laws and regulations. Horizons also ensures payroll is processed weekly or fortnightly (the standard periods in Paraguay), and that taxes are withheld as required.
As the Paraguay Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to state authorities, and submission of tax returns to the Paraguay Tax Office.
Partnering with our Paraguay EOR is the quickest and most cost-effective way to enter the Paraguay market.
Note, a Paraguay Employer of Record is also known as a Paraguay Professional Employer Organization (PEO).
Hire in Paraguay, and pay employees through our platform or app.
Our Paraguay EOR solution is the most affordable on the market.
Fast onboarding in Paraguay, hire in as little as 24 hours.
We draft labor contracts compliant with Paraguay labor law.
We administer all mandatory benefits and contributions in Paraguay.
It doesn’t stop with Paraguay — we are an international EOR
In Paraguay, employment contracts can technically be either verbal or written, but we strongly recommend writing up a formal contract for every employee. These contracts should be written in Spanish and use the local currency of the Paraguayan guaraní. They should also cover all relevant details of the agreement, such as wage/salary, working hours, benefits, and so on.
60 days
1 day
15 days’ salary per year of service, up to 50% annual salary
60 days
1 day
15 days’ salary per year of service, up to 50% annual salary
The standard working week for employees in Paraguay is 48 hours. For overtime work, workers should be paid at 150% to 200% of normal rates.
There are a number of nationally recognized public holidays in Paraguay. Most employees receive the following days as paid leave from work every year:
Paraguay has a range of national public holidays that are celebrated annually. In 2025 these holidays are:
| Date | Holiday name |
|---|---|
| 1 Jan Wednesday | New Year’s Day |
| 1 Mar Saturday | Heroes’ Day |
| 17 Apr Thursday | Maundy Thursday |
| 18 Apr Friday | Good Friday |
| 1 May Thursday | Labour Day / May Day |
| 14 May Wednesday | National Holiday |
| 15 May Thursday | Independence Day |
| 12 Jun Thursday | Chaco Armistice Day |
| 15 Aug Friday | Founding of Asuncion |
| 29 Sep Monday | Boqueron Battle Victory Day |
| 8 Dec Monday | Virgin of Caacupé Day |
| 25 Dec Thursday | Christmas Day |
Employees in Paraguay accrue paid vacation over time with an employer. For between one and five years of service, they receive 12 days of paid vacation. For five to ten years, they receive 18 days of vacation, and for over ten years of service they receive 30 days.
Female employees in Paraguay are entitled to 18 weeks of paid maternity leave. This leave is paid at 100% of the normal salary by the Instituto de Previsión Social (IPS), a state body.
Fathers in Paraguay are entitled to two weeks of paid paternity leave upon the birth of a child. This leave is compensated by the employer.
In general, employees in Paraguay are entitled to between one and three months of notice prior to termination, with the exact length depending on their length of service with the employer. Severance payments may also be required and are usually paid at a rate of 15 days of normal salary per year of service. Probation periods are limited to three months.
Employers and employees in Paraguay are required to pay a percentage of salaries to social security at rates of 16.5% and 9% respectively. Income tax is on a Pay As You Earn system, meaning employers must withhold it before paying salaries.
Income tax is generally charged at 10%. Corporate tax is also 10% in most cases.
There is a public healthcare system in Paraguay, but it is also common for employers to offer private medical insurance to employees.
The mandatory minimum wage for full-time workers (in Jan 2024) is PYG 2,550,307 per month
Hire borderless talent with Horizons
With Horizons, you get quick service, transparent pricing, and expert support.
Generally speaking, the terms “Paraguay PEO” and “Paraguay EOR” are used interchangeably.
In most cases, Horizons’ Paraguay EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Paraguay.
It is possible to get a work visa in Paraguay. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Paraguay are limited, however—get started today to secure your employees’ visa spot.
Holiday Schedule in Paraguay [2025]
