Payroll and Benefits Guide - Bolivia

Bolivia
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Currency

Boliviano
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Capital

Sucre
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Employer Taxes

16.71%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Bolivia has the world’s most dangerous road, known as the “Death Road.”

The Bolivian carnival, known as Carnaval de Oruro, is one of the largest and most colorful carnivals in South America

Bolivia has the largest deposit of lithium in the world.

Bolivia is known for its stunning landscapes.

The Salar de Uyuni in Bolivia is the world’s largest salt flat.

Bolivia is one of the most biodiverse countries.

Bolivia

Contributions

Employee Payroll Tax

Long-term SSO Contribution (Disability, Old Age and Death)10.00%
Common Risk1.71%
Pensionary Fund Commission0.50%
Solidarity Contribution for Pension0.50%

Employer Payroll Tax

Housing2.00%
Professional Risk Premium1.71%
National Healthcare10.00%
Employer Solidarity Contribution3.00%

Payroll

Payroll Cycle

Payday for salaries is the last working day of each month.

13th Salary

A 13th salary, which is equal to one month’s pay, is needed at the end of the year (Aguinaldo). Taxes and social security contributions are not applied to the Christmas bonus.

Work Hours and Week

8 hours per day, up to a maximum of 6 working days, are the typical working hours in Bolivia.

Overtime

The daily maximum for overtime is 2 hours, and the rate is paid at 200.00% of the hourly rate.
Bolivia

Leave

Paid Time Off

Following the completion of one year of service, paid leave is granted in increments of at least 15 days per year, not including public holidays.

Public Holidays

18 national holidays are observed. Holidays that fall on a weekend are moved to the Monday after.

Sick Days

A medical certificate must be provided within 48 hours of the first day of illness. All employees qualify for up to 26 weeks of paid sick leave per year.

Maternity Leave

Maternity benefits, which include 90 days of paid leave, 45 days before and 45 days after the due date, are available to all female employees.

Paternity Leave

The father is entitled to three days of required paid paternity leave.

Parental Leave

There are no provisions in the law regarding parental leave.

Termination

Termination Process

Written notice of termination must be delivered to the appropriate governmental authorities.

Notice Period

The mandatory notice period is not mandated by Bolivian labor law.

Severance Pay

Severance pay is required in Bolivia if applicable. A severance payment is frequently calculated as one month’s regular salary for each year of service that has been completed.

Probation Period

Probation Period

For permanent employees, Bolivian probationary periods typically last between one and three months.

Immigration

Any foreign nationals arriving in Bolivia to work must register with the labor ministry. Although they do not need work permits, foreign employees must register their employment contracts with the Bolivian labor authorities within 90 days of signing them. Employees need a special purpose visa to sign the agreement and a one-year residence visa.

VAT

Bolivia has a 13% standard VAT rate.