Paraguay is a landlocked country in South America bordered by Argentina, Brazil, and Bolivia. The country is divided by the Río Paraguay into 2 well differentiated geographic regions, the eastern region and the western region.

The majority of Paraguay's population is mestizo, and Guarani culture remains widely influential in the country.

The monthly minimum wage in Paraguay is PYG 2,550,000 per month, and a standard workweek is 48 hours at 8 hours per day (for 6 days). Overtime work is aid at between 150%-200% of the regular salary and has a maximum of 3 hours per day.

Parental Leave

Pregnant employees are entitled to 18 weeks of paid maternity leave, and fathers/partners are also entitled to 2 weeks of paid paternity leave after their child’s birth. Both types of leave are fully paid for by social security. Employees can also take adoption leave.

Sick Leave

Employees in Paraguay are entitled to paid sick leave for up to 26 weeks, which is paid for jointly by the employer and social security.

Paid Leave

There are 13 public holidays in Paraguay, and employees are also entitled to a minimum of 12 days of paid time off which increases the longer they work at the company (up to 30 days). Employees can also take leave for marriage or bereavement.

Process

The termination process depends on the employment contract and reason for termination. Notice of termination must be delivered in writing. Employers cannot unlawfully dismiss any employees who have worked at their company for more than 10 years, only for a just cause.

Notice Period

The mandatory notice period for terminations is at least 1 day.

Severance Pay

If applicable, severance pay in Paraguay is dependent on the employee’s length of service at the company. It is usually calculated as 15 days of pay for every year of service, with a maximum payment of 50% of the employee’s yearly salary.

It is mandatory to give out 13th-month salary payments in Paraguay, which are equal to 1 month of salary and paid at the end of the year.