Bolivia Employment Guide

Understanding Bolivia's Minimum Wage Requirements

In Bolivia, the national minimum wage is established at 2,500 Bolivianos (BOB) per month. This baseline compensation is mandatory for all full-time employees and serves as a fundamental component of the country's labor regulations.

Personal Income Tax Structure

Bolivia applies a flat-rate personal income tax of 13% on earnings. This straightforward system simplifies payroll calculations for both employers and employees, ensuring compliance without complex tax brackets.

Employer Costs and Contributions

When hiring in Bolivia, employers should anticipate additional costs averaging approximately 16.71% of an employee's gross salary. These mandatory contributions are broken down monthly as follows:

• Social Security: 3%
• Professional Risk Insurance: 1.71%
• Public Health Insurance: 10%
• Housing Fund (Provivienda): 2%
• Remote Work Allowance: 200 BOB

It is important to note that for Social Security, Professional Risk Insurance, and the Housing Fund, the minimum contribution base is set at 2,363 BOB, even if the actual salary is lower.

One-Time Employment Costs

• Mandatory Paper Labor Contract Processing Fee: Approximately 80 USD

Annual Recurring Expenses

• Pre-employment Medical Examination: 200 BOB
• Exit Medical Examination: 200 BOB
• 13th Month Salary (Christmas Bonus): Equivalent to one month's pay

Additionally, Bolivian law requires an annual salary adjustment of around 3%, typically effective each January.

These figures are estimates for general guidance. For a precise breakdown of all costs associated with employment agreements in Bolivia, consult with SailGlobal's HR specialists for a customized quotation.

Overtime and Standard Working Hours

The standard work schedule in Bolivia is defined as 8 hours per day and 40 hours per week, typically from Monday to Friday. Any work beyond these hours is subject to overtime compensation as stipulated by local labor laws.