An Employer of Record (EOR) in Paraguay is a service provider that becomes the legal employer of your employees, handling all employment responsibilities including contracts, payroll, taxes, social security, and compliance with Paraguayan labor laws. You retain full control over employees’ work assignments and daily management while the EOR handles administrative and legal employment obligations.

With Asanify’s EOR services, you can onboard employees in Paraguay within days after candidate selection. We expedite contract preparation, IPS registration, and all compliance documentation, enabling you to start operations significantly faster than establishing a local entity, which typically requires several months.

Employer social security contributions in Paraguay are approximately 16.5% of gross salary, paid to the Instituto de Previsión Social (IPS). Additional costs include aguinaldo (13th-month salary equivalent to 1/12 of annual earnings) and vacation pay. Asanify manages all these contributions and provides transparent cost breakdowns upfront.

Paraguay has a statutory minimum wage that is adjusted periodically by the government. The minimum wage varies based on activity sectors and employee categories. Asanify stays current with all minimum wage regulations and ensures your payroll always meets or exceeds statutory requirements for your industry and employee classifications.

Termination in Paraguay requires just cause or payment of severance. For dismissal without cause, employers must provide advance notice (30-90 days depending on tenure) or payment in lieu, plus severance pay calculated based on years of service. Asanify ensures all terminations comply with Labor Code requirements and calculates appropriate severance payments accurately.