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How to hire remote employees in
Want to hire someone remotely in Paraguay? Want to hire them without spending thousands of dollars on legal fees and months bogged down in red tape? Then you’re in the right place. In the next couple of minutes, we’ll teach you about the best way to hire great talent in Paraguay.
If you want to successfully hire in
Paraguay
, you have two options:
Laws about hiring contractors are significantly more simple in
Paraguay
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Paraguay
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Paraguay
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Paraguay
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Paraguay
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Paraguay than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Paraguay.
PTO is calculated by the:
Annual leave allowance depends on how long an employee has been employed:
There are 13 public holidays.
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
In Paraguay, maternity lasts for 18 weeks and is paid at a rate of 100% of the gross salary by IPS.
In the event of multiple births, the woman receives an additional 30 days per child.
A new father can take 2 weeks paid paternity leave after the delivery of the child. Paternity leave is also paid out by IPS at the rate of 100% of the gross salary.
No statutory law for parental leave.
None.
None.
For the death of an immediate family member, an employee is entitled to 3 days of leave.
In Paraguay, a notice of termination must be delivered to the employee in writing.
For an employee who has been employed for over 10 years cannot be terminated for unjust reasons, they must be terminated for a just cause.
The notice period in Paraguay is:
Mandatory notice period is 1 day.
If the cause for termination is justified (misconduct or poor performance), the employee is not entitled to severance pay.
It is important to note, though, that if the employee feels that they were unjustly terminated under the reason for just cause or misconduct on the part of the employer and the employer is not able to prove the reason for dismissal in a labor court, the employee is entitled to severance pay (15 days of wages for every year worked or up to half a year’s wages) as well as back pay from the date of dismissal to the date of the court ruling.
An employee who is terminated without cause is entitled to 15 days of severance pay for every year of service.
For an employee who has over 10 years of employment with a company- If an employer is not able to prove a just cause to a labor court, the employee might either be reinstated or would have the right to double the regular severance pay.
The probationary period is 30 days for unqualified employees or domestic workers and 60 days for qualified workers or apprentices.
The standard full-time workweek is 48 hours.
For employees who work nights, the workweek is 42 hours.
For employees who work night hours, they are compensated at 130% of the regular pay rate.
Overtime is paid at different rates:
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