Bolivia is a landlocked country in South America that is bordered by Brazil, Paraguay, Argentina, Chile, and Peru. One third of the country is located within the Andean mountain range.

Businesses that are registered in Bolivia are required to employ a workforce that consists of at least 85% Bolivian nationals (this does not apply if you employ someone in Bolivia via an Employer of Record).

The minimum wage in Bolivia is 2,250 BOB per month, as of May 2022. Standard working hours are 8 hours per day, with a maximum of 6 working days each week (Monday-Saturday). Any work done past this amount is considered overtime and is paid out at 200% of the salary (with a general maximum of 2 hours each day).

Parental Leave

Pregnant employees are entitled to 90 days of paid maternity leave, where 45 days are taken before the birth and 45 are taken after. While the employer has to pay the maternity leave salary at the rate of the national minimum wage, the employer will receive a reimbursement from social security for 90%.

Employers are also mandated to grant a maternity benefit to pregnant employees that are equivalent to one month of pay, as well as nursing and prenatal subsidies equivalent to 1 month’s salary.

Pregnant employees’ partners receive 3 days of time off for the birth and are protected from being terminated for one year after the birth. Adoptive parents are also protected from termination for one year.

Sick Leave

Employees in Bolivia are entitled to 26 days of paid sick leave each year, as long as they have a certificate from a medical professional. After the 5th day the employer provides sick pay at 100% of the salary rate, and then 75% is reimbursed by social security.

Paid Leave

There are 10 public holidays in Bolivia. After 1 year of service at a company, employees are entitled to 15 days of paid time off each year, which increases to 20 days after 5 years of service and 30 days at 10 years.

Process

Employees can be terminated for just cause, which includes negligence, fraud, disclosing industry secrets, theft, etc. If there is no justifiable reason for termination, the employee can demand a severance or reinstatement.

Notice Period

There is no mandatory notice period for a termination according to Bolivian law.

Severance Pay

The severance due to an employee depends on the type of termination, and is generally calculated as one month of salary for each year at the company.

Bolivia requires a 13th month salary at the end of the year equal to one month of pay (not subject to tax or social contributions). A 14th month salary is also required if Bolivia’s GDP is over 4.5% (calculated in July and paid out in December).