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.

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Currency

Paraguayan Guaraní (PYG)

Capital

Asunción

Official language

Spanish

Salary Cycle

Monthly

Our Employment Guide in Paraguay

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Maternity Leave Regulations in Paraguay

Paraguayan labor law grants employees 18 weeks of paid maternity leave, structured as 2 weeks prenatal and 16 weeks postnatal. The Social Security Institute (IPS) administers salary payments during this period. Employees have the flexibility to transfer their 2-week prenatal leave to the postnatal phase if preferred. Extensions are permitted under special circumstances with proper documentation.

Paternity Leave Entitlements

Fathers are entitled to 14 calendar days of fully paid paternity leave following childbirth, with employers responsible for 100% salary coverage. This leave is non-extendable and must be taken consecutively.

Parental Leave Considerations

While Paraguay doesn't mandate separate parental leave beyond maternity/paternity provisions, companies like SailGlobal often implement enhanced family support policies to remain competitive in international talent markets.

Sick Leave Provisions

After 36 days of employment, workers qualify for paid sick leave covering up to 26 weeks at 50% of their average earnings from the previous four months. Employers process payments through IPS reimbursement, requiring valid medical certificates for approval.

Implementation Best Practices

International HR managers should note that Paraguayan leave policies demonstrate progressive social protections compared to regional neighbors. A multinational manufacturing company recently reported 23% higher employee retention after streamlining IPS documentation processes through SailGlobal's compliance platform.

Leave TypeDurationPayment Source
Maternity18 weeksIPS
Paternity14 daysEmployer
Sick Leave26 weeks maxIPS (50% wage)

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