Employer of Record in Paraguay: 11 Providers Compared (2026)

Employing someone in Paraguay: key facts

Amounts are in guaranies (PYG), nominal. The Labour Code (Ley 213/93) was read in a consolidated copy hosted by a university, which does not date its latest amendments; the official texts did not open for us.

Minimum wage

One national rate for “activities not specified” (private sector). The Ministry of Labour (MTESS) may set higher or differentiated minimums for specified activities; we did not open the sector rates.

Employer contributions

Paid to IPS (Instituto de Previsión Social) on total salary in cash or kind. The base excludes the annual aguinaldo and the family allowance; no ceiling was found, and no other employer payroll tax was found.

• The worker pays 9%, withheld from salary; the total is 25.5% (MTESS guide, checked 2026-10-29).
• The exclusion of the aguinaldo from the base comes from PwC Tax Summaries (reviewed 2026-10-19). An IPS interview in 2024 rounds the employer share to 16%; MTESS and PwC both say 16.5%.

Working hours and overtime

• Day work (06:00-20:00): 8 hours a day or 48 a week. Night work (20:00-06:00): 7 hours a day or 42 a week. Mixed shift: 7.5 hours a day or 45 a week (arts. 193-196).
• Overtime is paid at least +50% on the ordinary salary; night work carries a 30% premium; night overtime +100%; hours worked on public holidays +100% (art. 234). Overtime is voluntary except in the cases listed in art. 202 (Código del Trabajo, checked 2026-10-29).

Annual leave and public holidays

Leave is paid in advance at the start of leave.

• 13 dates on the 2026 press calendar: 1 Jan, 1 Mar (moved to Mon 2 Mar), 2 and 3 Apr (Holy Thursday and Friday), 1 May, 14 and 15 May, 12 Jun, 20 Jun (Constitution Day, moved to Mon 22 Jun), 15 Aug (a Saturday in 2026), 29 Sep, 8 Dec, 25 Dec. The same source counts “12 official holidays”. Ley 7544/2025 lets the Executive add up to three extra holidays a year; one was used on 30 Jun 2026 (ABC Color, checked 2026-10-29).

Probation

• Maximum 30 days for domestic and unskilled workers and 60 days for skilled workers and apprentices; for highly specialised technical staff the parties may agree another period (art. 58).
• Either side may end the contract without liability during probation, but the worker keeps all benefits except notice pay and dismissal indemnity (art. 60). Probation is paid and counts towards seniority (art. 59) (Código del Trabajo, checked 2026-10-29).

Notice and severance

• An employer who gives no notice pays the salary for the notice period (art. 90). A worker who omits notice owes half of it.
• Dismissal without just cause: 15 daily salaries per year of service or fraction over six months, on the average salary of the last six months, payable on top of notice pay (arts. 91, 92 b). The divisor for the daily salary (monthly / 30) comes from secondary Paraguayan summaries, not the code text.
• After 10 uninterrupted years the worker has job stability: dismissal only for proven just cause, and wrongful dismissal carries reinstatement or a double indemnity (arts. 94, 97).
• Fixed-term contracts may not exceed one year for manual workers or five years for employees; ended early, damages run up to the salaries to the end of the term (arts. 49-50, 83) (Código del Trabajo, checked 2026-10-29).

13th salary and bonuses

• Aguinaldo is mandatory: 1/12 of all remuneration earned in the calendar year (salary, overtime, commissions), paid before 31 December or at termination if earlier (art. 243). A proportional aguinaldo is due on leaving (art. 244).
• It is one extra monthly salary a year for a steadily paid worker, free of IPS contributions and not subject to garnishment (art. 245) (Código del Trabajo, PwC, checked 2026-10-29).

Mandatory benefits

• IPS social insurance, funded by the 9% and 16.5% contributions, covers health care, maternity, accident and illness cash benefits and pension (MTESS guide, checked 2026-10-29).
• Maternity: 18 uninterrupted weeks with an IPS subsidy of 100% of salary (Ley 5508/2015). Paternity: 14 consecutive days (Decreto 7550/2017). We did not open either text, and who pays for paternity leave is not confirmed (BACN, checked 2026-10-29).
• No mandatory private insurance or profit-sharing was found.

Work permits

• A foreigner needs legal residence to work. General temporary residence (Ley 6984/2022) is valid up to two years, renewable for the same period, and costs PYG 2,787,550. While the file is processed the applicant has “residente precario” status, which allows legal work.
• Nationals of Argentina, Brazil, Uruguay, Bolivia, Chile, Peru, Colombia and Ecuador (Mercosur agreement): two-year temporary residence, not renewable, PYG 2,230,040. The application is personal and in person (Agencia IP, checked 2026-10-29).
• Whether an EOR can sponsor a worker, and any employer-side filing, was not found in a primary source. Local hires who already hold residence or citizenship need no permit.

Currency and payroll

• Guarani (PYG). Rate used on this page: 1 USD = PYG 5,868.31, the Banco Central del Paraguay reference rate of 2026-10-28 (BCP, checked 2026-10-29).
• Salary is paid weekly, fortnightly or monthly, on working days at the workplace, with a signed pay slip; daily pay may not fall below the monthly minimum divided by 26 (arts. 232, 235-236). Monthly is common practice, not a statutory requirement (Código del Trabajo, checked 2026-10-29).
• Employee income tax (IRP) is 8%, 9% and 10% on net income in three bands, and applies only if gross personal-service income exceeds PYG 80,000,000 in the year (DNIT cartilla, checked 2026-10-29).

Is Employer of Record legal in Paraguay?

Grey area. Paraguay has no EOR statute, EOR licence or temporary-staffing law that we found, and no Ministry of Labour or law-firm opinion on EOR. The Labour Code treats whoever uses the work as the employer and makes intermediaries jointly liable, while allowing genuine independent contractors. A pure EOR placement, where the foreign client directs the work, is not addressed by any Paraguayan source we read. That is an inference from the texts below, not a ruling. See the Employer of Record glossary entry.

The rules that matter to a client (checked 2026-10-29, Código del Trabajo):

• Intermediaries (art. 25 b). Persons who hire others to work for an employer, even if they appear as independent businesses, when the workers use the employer’s premises, equipment or materials in its ordinary or related activities. They must declare they act for an employer and name it; otherwise they are jointly liable with it.
• Independent contractors (art. 26). Persons who do work under a contract, taking all risks with their own elements and with direct and technical autonomy, or work outside the client’s normal activities, are treated as employers, not intermediaries.
• Wage liability (art. 238). Every employer remains subsidiarily liable for the wage even when it uses intermediaries or agents to hire.
• Presumption of employment (arts. 48, 23). Without a written contract, subordinate services are presumed to be employment; even for directors and executives the Code applies where subordination predominates.
• Fixed-term contracts (arts. 49-50). They are the exception for permanent work and are re-qualified as indefinite if the cause continues, so repeated fixed-term EOR contracts do not avoid notice and indemnity.

Risks the client carries:

• Joint liability. If the arrangement is read as intermediation under art. 25, the client that benefits from the work can be held jointly liable for wages, aguinaldo, notice and indemnity (arts. 25, 238).
• IPS registration. A worker mis-registered or not registered can be registered ex officio after a complaint to IPS or MTESS; missing contributions then fall on the employer (MTESS guide, section 2.6).
• Foreign worker without residence. Such a worker cannot work lawfully; residence is a Migraciones procedure the worker attends in person (Agencia IP).
• Vendor marketing is not law. Vendor pages describe the EOR as the legal employer with the client directing day-to-day work; that is marketing, not evidence the model is recognised under Paraguayan labour law (Playroll).

See also co-employment.

Who actually employs your hire in Paraguay

We read the Paraguayan pages and documents of the 11 providers that operate in Paraguay. The Paraguayan company registers were not searched by name, so no vendor entity was checked there. Twelve more are not in the table because we could not confirm that they offer EOR in Paraguay: Oyster, Papaya Global, Rippling, Native Teams, RemotePass, Rise, Kleos, Remozo, Boundless, Atlas, Borderless AI and Justworks.

All checked 2026-10-29. Prices on Paraguayan pages are as shown there; Rivermate’s and RemoFirst’s are site-wide list prices.

Ten of the 11 don’t name the Paraguayan company that employs, and Rivermate names no partner. That matters because in a grey area your exposure runs through the employer on the contract. Before signing, ask: “Which Paraguayan company signs my employee’s contract, and how is it registered with the tax authority (DNIT), IPS and the Ministry of Labour?”

How to choose an EOR in Paraguay

Want to know the employer’s name? No provider names its Paraguayan company on the pages we read, and none says the entity is its own. Rivermate says local partners are involved. Ask any provider for the company name and registration before you sign.

Need residence for a foreign hire? No primary source we read says an EOR can sponsor a residence file, and the application is personal and in person. Vendor guides say the contract must be with a Paraguayan entity. Remote adds 3 days if a Right to Work assessment applies. Ask in writing who would apply.

Price against completeness? On Paraguayan pages Playroll’s from $399 is lower than Skuad’s $549 and Deel’s $599; seven providers show no Paraguayan price, and Multiplier’s page points to its global plans. Compare price after you know who employs.

Need to start fast? Vendors claim a start in as little as 3 days (Deel), “in days” (Multiplier, Playroll) and one to two weeks for a resident (Remote People). Remote states a minimum of 10 working days and a payroll cut-off on the 10th. These are vendor claims, not commitments.

What it costs to employ someone in Paraguay through an EOR

The employer is the EOR itself, a large payroll employer. Gross pay is PYG 294,000,000 and PYG 588,000,000 a year in 12 monthly salaries (PYG 24,500,000 and 49,000,000 a month), about USD 50,100 and USD 100,200 at 1 USD = PYG 5,868.31 (BCP, 2026-10-28, checked 2026-10-29). Statutory cost is the 16.5% IPS contribution plus one aguinaldo of one month’s salary, which carries no IPS contribution.

No ceiling on the IPS base was found, so the share is the same at both salaries. Paid leave sits inside normal monthly pay and adds no separate line.

Not included: severance (15 daily salaries per year of service, due only on dismissal without cause), notice pay, paid leave, the EOR fee and any sector-specific minimum wage. The employer’s accident cover is assumed to sit inside the IPS contribution.

The EOR’s own fee comes on top, quoted per month. Three providers show a price on a Paraguayan page: Playroll from $399, Skuad $549 in its widget and Deel from $599. Multiplier’s page cites its global plans, Core $459 and Growth $519 billed annually; RemoFirst and Rivermate publish site-wide list prices from $199 and $349. Seven providers show no Paraguayan price. Published list prices run from $199 to $599 per month.

Hidden costs, where published:

• Deel’s Paraguay page lists a one-off medical exam of PYG 1,090,440.3 (about USD 150) and an administrative fee of 0.60% called “Employer Liability Cost” (deel.com, checked 2026-10-29).
• Playroll says its service fee is billed separately from the salary and statutory on-costs (playroll.com, checked 2026-10-29).
• For every provider, deposit, minimum term and termination fee are not published for Paraguay, and no setup fee is shown. Treat a blank as unpublished, not zero.

When you don’t need an EOR

• A genuinely independent contractor. If the person works on their own account, with their own risk and autonomy, a contract is closer to the real relationship. See how to pay contractors in Paraguay, our hiring guide and contractor misclassification.
• How a Paraguayan contractor is taxed. An independent provider of personal services registers with a RUC at DNIT, issues invoices and pays IRP of 8% up to PYG 50,000,000, 9% up to PYG 150,000,000 and 10% above, on net income. No tax is due if gross personal-service income does not exceed PYG 80,000,000 in the year, though filings still apply. IPS contributions are voluntary for independents. Whether an invoice to a foreign client carries 10% IVA was not confirmed (DNIT cartilla, checked 2026-10-29).
• Your own Paraguayan entity. The route to weigh for a permanent team. We found no published figures for setting one up, so we give none.

What changed in 2026

• 2026-07-01: Minimum wage up 5% to PYG 3,044,000 a month (daily PYG 117,077) by Decreto 6225/2026, from PYG 2,899,048 (impuestospy.com, checked 2026-10-29).
• 2026-06-20: Constitution Day appears as a holiday in the 2026 calendar (moved to Monday 22 June), and the Executive used one of its three extra holidays under Ley 7544/2025 on 30 June. Press source; the law was not opened (ABC Color, checked 2026-10-29).
• 2025-11-27: Personal Data Protection Law 7593/2025 enacted, with full application after a two-year adaptation period, around November 2027; it will affect employers’ HR data handling from then (Ferrere, checked 2026-10-29).

No change to IPS rates (9% and 16.5%) was found for 2026, and PwC reports IRP rates of 8/9/10% and the PYG 80,000,000 threshold unchanged (PwC, reviewed 2026-10-19).

Numbers vendors haven’t updated

• Minimum wage. The rate in force is PYG 3,044,000 from 2026-07-01. Deel’s page gives PYG 2,899,048 (the 2025 rate), Borderless AI’s guide PYG 2,680,373 “effective 2024” and RemoFirst’s guide PYG 2,550,000 (deel.com, hireborderless.com, remofirst.com, checked 2026-10-29).
• Employer cost. Our figure for IPS is 16.5%. Deel’s page gives 17.10%, which it builds from IPS 16.5% plus a family allowance of PYG 144,952 for salaries below PYG 5,798,096; the salaries in our examples are above that. Remote People’s page gives 17.5% (deel.com, remotepeople.com, checked 2026-10-29).
• Holidays. Remote’s Paraguay page shows 12 public holidays in one block and 13 in another; G-P’s page shows 13 (remote.com, globalization-partners.com, checked 2026-10-29).
• Skuad. Its Paraguay page is dated April 2025 (“Updated for 2025”); we did not use its local figures (skuad.io, checked 2026-10-29).

How we built this page

Facts were collected and checked on 2026-10-29 against the Labour Code (Ley 213/93) in a consolidated university copy, the MTESS social-security guide, DNIT and PwC tax material, the Banco Central del Paraguay and the decrees as republished by Paraguayan press and tax sites; where only a secondary source exists the text says so. Employers were checked against vendor pages and statements; the Paraguayan company registers were not searched by name, so a vendor’s company may be invisible to us. Vendors are ordered with partners first, then those that do not disclose, by Paraguayan price and completeness of data; no vendor pays for placement.