Global HR Compliance in Paraguay

Expanding into Paraguay often begins with the need to hire local or international talent, but that step raises critical questions. How do you engage workers compliantly under local labour laws? How do you compensate them properly, handle benefits, or mitigate dismissal risks?

Whether your aim is to test a new market, build a local sales presence, or access talent with niche skills, Acumen International’s Global Employer of Record (EOR) solution gives you a compliant employment infrastructure without the burden of entity setup.

We act as the legal employer on your behalf in Paraguay with 100% hiring compliance, managing contracts, payroll, taxes, and benefits under local law, while you retain full control over daily work and business outcomes.

Employment Contracts in Paraguay

Employment contracts in Paraguay may be oral or written, but written agreements are required if the employee’s wage exceeds the legal minimum. All employment relationships, regardless of formality, are governed by the Labour Code and presumed to be contractual.

Contract Types

By form: Written or oral
By duration: Fixed-term, indefinite, or project-based
By payment: Monthly salary, daily rate, commission-based, piecework
By structure: Individual, team-based, or collective contracts.

Minimum Employment Standards

Working Hours

Standard working hours are capped at 8 hours per day and 48 hours per week for daytime work, and 7 hours per day and 42 hours per week for night shifts. Special limitations apply to minors under 18.

Probation Period

30 days for unskilled and domestic workers
60 days for skilled workers and apprentices
For highly specialised roles, longer terms may be mutually agreed
During probation, either party may terminate the contract without notice or severance, but all other rights remain in force.

Annual Leave

Employees earn paid vacation based on seniority:

1–5 years: 12 working days
5–10 years: 18 working days
10+ years: 30 working days

Sick Leave

Employees insured through the national health system are entitled to paid sick leave, funded by social security. During leave, the employer is restricted from dismissing the employee.

Parental Leave

Maternity leave is 12 weeks and protected under constitutional law. Dismissals during pregnancy or maternity leave are invalid unless approved by the Labour Authority. While the Constitution recognises paternity rights, there is currently no statutory paternity leave. Family allowances are mandated based on the number of dependants.

Overtime

Permitted under limited conditions:

No more than 3 extra hours per day
Not exceeding 57 hours in a week
Not allowed for workers under 18 Overtime must be compensated at an enhanced rate.

Employee Dismissal in Paraguay

Employers must notify employees of termination in writing or verbally. Justified dismissals require proof submitted to the Labour Authority. If this is not done, the dismissal is considered unjustified and the employer is liable for compensation.

Employees with 10+ years of continuous service have special protection and may only be dismissed for just cause legally validated by a labour judge. If no such cause is proven, the employer may be ordered to reinstate the worker or provide double severance.

Notice Periods

Up to 1 year of service: 30 days
1–5 years: 45 days
Over 10 years: 90 days
Dismissals without prior notice require payment in lieu.

How Acumen International Can Support Your Hiring Strategy in Paraguay

Legal Employment Without Entity Setup

We enable you to employ staff in Paraguay without setting up a local subsidiary. Acumen International becomes the legal employer on your behalf while you maintain operational oversight.

Compliance-First Payroll and Tax Handling

We manage monthly salary payments, deductions, social security contributions, and tax filings—ensuring compliance with all Paraguayan regulations.

Contracts and Employment Structure Aligned to Your Needs

We draft compliant employment contracts, tailored to your business model. Whether you need to employ talent full-time, commission-based, or under a hybrid structure, we ensure the right legal footing.

Global Payroll Calculator

Before hiring, use our Global Payroll Calculator to model the full employment cost of hiring talent in Paraguay. Estimate gross-to-net pay, employer contributions, and statutory benefits to budget confidently and avoid cost surprises.

Risk Reduction in Hiring and Offboarding

We help you mitigate risks tied to employee misclassification, non-compliance, or termination errors. Our local expertise supports proper onboarding and legally sound exits.

Work Permit Sponsorship for Foreign Hires

For international staff, we provide work permit sponsorship — ensuring legal right to work and helping you retain key talent in Paraguay.

Local Expertise, Global Infrastructure

We offer continuity across 190+ countries, reducing your dependency on fragmented local vendors. You get consistent, centralised support and a reliable hiring experience in Paraguay and beyond.

Need to employ talent in Paraguay or explore compliant ways to expand your business footprint?

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