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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Understanding Paid Time Off Regulations in Paraguay

Paraguay's labor legislation ensures that both full-time and part-time employees are entitled to paid time off (PTO) benefits. The standard annual leave entitlement begins at 12 working days for all eligible workers.

Progressive Leave Accrual Based on Tenure

The duration of paid vacation increases progressively as employees accumulate service years with their employer. This tiered system rewards long-term commitment while maintaining workforce motivation.

Less than 5 years of service: 12 working days
5 to 10 years of continuous service: 18 working days
Over 10 years of dedicated service: 30 working days

Employees must utilize their accrued leave within six months of accumulation. Unused vacation days automatically carry over to the following calendar year, preventing benefit loss.

National Public Holidays in Paraguay

Paraguay observes nine official public holidays annually, providing regular opportunities for cultural celebration and national remembrance. These non-working days include:

New Year's Day (January 1)
Heroes' Day (March 1)
Labor Day (May 1)
Independence Day (May 14-15)
Chaco Armistice Day (June 12)
Asunción Foundation Day (August 15)
Battle of Boquerón Day (September 29)
Virgin of Caacupé Day (December 8)
Christmas Day (December 25)

Practical Implications for International Employers

Companies like SailGlobal operating in Paraguay should integrate these statutory requirements into their HR policies. Proper vacation planning ensures compliance while maintaining operational continuity. Many multinational corporations implement digital tracking systems to manage accruals effectively across their Paraguayan workforce.

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