Paraguay Employment Guide

Paraguay Employment Guide

Paraguay, located in South America, has a population of around 7 million. Its economy relies on agriculture, livestock, and hydroelectric power generation, along with growing trade and services sectors. Employment in Paraguay is regulated by the Labor Code, which governs contracts, working hours, overtime, paid leave, social security contributions, and termination procedures. Employers must comply with local tax and social security obligations. Labor protections include workplace safety regulations, non-discrimination, and maternity leave rights. The labor market accommodates foreign workers under specific permits.

Check recruitment costs

Currency

Paraguayan Guaraní (PYG)

Capital

Asunción

Official language

Spanish

Salary Cycle

Monthly

Our Employment Guide in Paraguay

Browse the following tags to learn all about hiring employees in Paraguay

Essential Elements of a Spanish Employment Contract

When drafting an employment agreement in Spain, it is mandatory to use the Spanish language, though bilingual versions are acceptable. The contract must be in written form, signed by both employer and employee, and electronic signatures are legally recognized.

To ensure compliance with Spanish labor law, the contract should clearly outline the following key provisions:

  • Termination conditions and procedures
  • Required notice periods for contract conclusion
  • Standard working hours and schedule
  • Bonus structures and eligibility criteria
  • Annual leave entitlements
  • Sick leave policies and compensation
  • Detailed job responsibilities
  • Confidentiality and data protection clauses

It is important to note that backdating employment contracts is strictly prohibited under Spanish regulations.

Understanding the Probationary Period in Spain

The probationary period, a standard feature in Spanish employment, must adhere to specific legal durations. The minimum probation period is 30 days, while the maximum allowable period cannot exceed 60 days. This timeframe allows both SailGlobal and the employee to assess suitability before confirming a permanent role.

Hire easily in Paraguay

Compare employee hiring costs across over 100 countries worldwide, helping you accurately calculate labor costs. Try it now

Cost Calculator

Please select the country/region you wish to recruit from, and the calculation can be done with just a few clicks.