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.

Country snapshot

Paraguayan Guaraní (PYG)

What to know before you hire 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 


, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 


. 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 Panther for.

Hire talent as employees

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 


 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 


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 



It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’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’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. 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.

It’s more flexible for you & your team

Hiring contractors in 


 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.

Can be less risky than hiring employees

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.

Some people want to be employees

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.

You might not have as much control over your talent

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.

How can I pay people in 



If you’re hiring contractors in 


, you can pay them with Panther 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.

Hiring and paying your team in 


Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 


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.

Taxes in 


Employer tax

Social security

Individual tax


Paid Time Off (PTO)

PTO is calculated by the:

      Annual leave allowance depends on how long an employee has been employed:

  • 1 year of employment- 12 days of leave.
  • At least 5 years of employment- 18 days of leave.
  • At least 10 years of employment- 30 days of leave.

Public Holidays

There are 13 public holidays.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:

  • If an employee is ill, they are entitled to sick leave and are paid 50% of their regular pay by social security (IPS); and
  • The other 50% is paid by the employer.

Maternity Leave

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.

Paternity Leave

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.

Parental Leave

No statutory law for parental leave.

Other Leave


Marriage Leave


Bereavement Leave

For the death of an immediate family member, an employee is entitled to 3 days of leave.


Termination Process

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.

Notice Period

The notice period in Paraguay is:

Mandatory notice period is 1 day.

Severance Pay

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.

Probation Period

The probationary period is 30 days for unqualified employees or domestic workers and 60 days for qualified workers or apprentices.

Employee requirements in 


Working Hours

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:

  • 150% of the regular pay rate for overtime during daytime hours.
  • 200% of the regular pay for overtime during night hours and public holidays.

Want to hire contractors, anywhere? Start with Panther today for $0.

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