Hire employees and contractors in Bolivia

Remote’s guide to employing in Bolivia.

  • Capital city

    La Paz

  • Currency

    Bolivian boliviano
    (Bs, BOB)

  • Population size

    11,428,245
    (est. 2019)

  • Languages spoken

    Spanish, indigenous languages

  • Availability

    Remote-Owned Local Entity

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

Facts & Stats

The Plurinational State of Bolivia (Estado Plurinacional de Bolivia) is a constitutional unitary state, divided into nine administrative departments.

Bolivia hosts a rich cultural history that’s stretched for over 2,500 years, a multiethnic heritage of 36 indigenous groups, the majestic Andes range (South America’s largest and highest peaks), and rich biodiversity.

Bolivia’s growing economy and its low corporate tax rate are key reasons why companies are increasingly considering expanding into Bolivia.

  • Capital city

    La Paz

  • Currency

    Bolivian boliviano
    (Bs, BOB)

  • Languages spoken

    Spanish, indigenous languages

  • Population size

    11,428,245 (est. 2019)

  • Ease of doing business

    Medium

  • Cost of living index

    $ (108 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    13%

  • GDP - real growth rate

    2.2 (2019)

Grow your team in Bolivia with Remote

To employ in Bolivia, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Bolivia can get complicated, especially without established local relationships.

Remote’s global employment solution makes it easy for your company to employ workers in Bolivia quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks
of misclassification

Bolivia, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

Employing in Bolivia

Bolivia’s Labor General Law of 1942 (Ley General del Trabajo) spells out provisions guiding minimum wage rates, employee protections, workers’ rights, and labor relations across Bolivia.

Employees in Bolivia enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process include minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Bolivia.

Public holidays

Date
Holiday Name
Extra information
Saturday, January 1, 2022New Year's Day
Saturday, January 22, 2022Plurinational State Day
Wednesday, February 2, 2022Candlemas
Tuesday, March 1, 2022Shrove TuesdayVary every year
Friday, April 15, 2022Good FridayVary every year
Sunday, May 1, 2022Labour Day
Thursday, June 16, 2022Corpus ChristiVary every year
Tuesday, June 21, 2022Willkakuti
Tuesday, August 2, 2022Agrarian Reform Day
Saturday, August 6, 2022Independence Day of Bolivia
Monday, October 17, 2022National Dignity Day
Wednesday, November 2, 2022All Souls' Day
Sunday, December 25, 2022Christmas Day

Minimum Wage

The Bolivian minimum wage sits at B$ 2,164 per month, or $312.12 per month, which has risen 2% year on year.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

A 13th month salary payment is required at the end of the year and this payment is equivalent to one month’s pay.

A 14th month salary is also mandatory, but only if the Gross domestic product of the country is over 4.5%. This will be known usually in July of every year and eventually the 14th salary will be paid in December.

Onboarding Time

We can help you get a new employee started in Bolivia fast. The minimum onboarding time we need is only 17 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

Competitive benefits package in Bolivia

Remote can help you provide a competitive and compliant benefits package for your employees in Bolivia. If you have questions or would like to offer a custom benefit, let us know and we can help.

  • Medical insurance plan
  • Dental insurance plan
  • Vision insurance plan
  • Additional paid holidays
  • Flexible work schedule
  • Pension scheme
  • Life insurance
  • Other insurance

Taxes in Bolivia

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Bolivia.

  • Employer

    • 25% - corporate tax rate

    • 10% - health insurance

    • 2% - social fund contribution

    • 1.71% - professional risk insurance

    • 3% - employer contribution

  • Employee

    • 13% - personal income tax rate

    • 10% - social security

    • 1.71% - common risk insurance

    • 0.5% - insured contribution

    • 0.5% - pension fund fee

Types of leave

Paid time off

Employees are entitled to paid annual leave after spending an entire year working for an employer. Leave entitlements depend on the number of years an employee has worked with an employer and are structured as displayed below:

  • One to five years of uninterrupted services: 15 working days
  • Five to 10 years of uninterrupted services: 20 working days
  • More than 10 years of uninterrupted services: 30 working days

Public holidays

Employees are entitled to take national and local holidays off work, and employers are forbidden to negotiate with employees to work on holidays for any remuneration.

Sick leave

Employers are mandated to register their employees with appropriate social security agencies within five days of employment. Sick employees can draw their normal wages from the employer after certification by the social security office, and the employer can, in turn, process refunds from the state for the benefits paid out.

Maternity leave

Female employees are entitled to 90 days of fully paid maternity leave, starting at least 45 days before delivery. In addition, postpartum employees can take an hour’s break to breastfeed, in addition to the mandatory two-hour breaks for all employees.

Employers are mandated to issue a maternity benefit equivalent to one month’s pay to a postpartum employee, as well as pre-natal and nursing subsidies of nutritional items, equivalent to one month’s wages.

Paternity/parental leave

Partners of pregnant employees are not entitled to any paid time off, but rather, are protected from dismissal for one year, counting from their child’s delivery.

Other leave

  • Adoption benefits: Adoptive parents are protected from dismissal for a year, starting from the date the adoption decision was finalized.

Employment termination

Termination process

Employees can be terminated without advance notice for just cause, such as exposure of trade secrets, negligence, fraud, etc., but if there is no justifiable reason, the employee can either demand a severance or demand reinstatement.

Severance pay

Faced with an unjustified termination, an employee can either demand reinstatement or accept a severance package equivalent to three month’s wages.

Probation periods

Probation periods can be between 30 days up to a maximum of 90 days, during which an employer can dismiss an employee for unsatisfactory performance.

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