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How to hire and pay employees in Bolivia
Slasify
Jun 21, 2025
Before Hiring in Bolivia
Discover the global hiring and employment landscape in Bolivia—a country with a rich cultural heritage and a growing economy driven by its natural resources and manufacturing sectors. With increasing investments in infrastructure and an emphasis on economic diversification, Bolivia offers unique opportunities for businesses looking to enter a resilient and emerging South American market.
Explore the employment essentials including payroll, personal income tax, statutory contributions, annual leaves, minimum wage, terminations, visa requirements, and more. Gain valuable compliance insights for a smooth entry into the dynamic Bolivia market with Slasify's global premium HR platform.
At a Glance
| Capital | Sucre |
| Currency | Bolivian Boliviano (BOB) |
| Payroll Cycle | Monthly |
| Minimum Wage | BOB 2,362 per month |
| Annual Leave | 15–30 days |
| Personal Income Tax | 13% |
Personal Income Tax
Personal income taxes (RC-IVA) in Bolivia is levied at a flat rate of 13% across all Bolivian-sourced income.
Local Tax
There are no local taxes on employment income in Bolivia.
Statutory Contributions
Employer Contributions
| Contribution rate | Note | |
|---|---|---|
| Social Tax | 16.71% | This rate is higher for those in the mining sector, at 18.71%. |
Employee Contributions
| Contribution rate | Note | |
|---|---|---|
| Social Tax | 12.71% | - |
| Solidarity Fund | Up to 10% | The rate of 1% applies to income over BOB 13,000 per month, 5% on income over BOB 25,000 per month and 10% on income over BOB 35,000 per month. |
The employee's contributions to the pension fund is calculated based on their gross salary of up to 60 times the monthly minimum wage.
Payment of Wages
The periods of time for the payment of wages shall not exceed 15 days for workers and a month for employees and domestic servants.
Minimum Wage
The national minimum wage in Bolivia is set at BOB 2,362 per month.
Statutory Bonus
Employers in Bolivia are obligated to pay their employees the following bonus, provided that the conditions entitling the employee to the bonus is fulfilled:
| Bonus | Amount | Note |
|---|---|---|
| Christmas Bonus (Aguinaldo) | 1 month's salary |
Employees are entitled to this bonus regardless of the employer's profits, prorated according to the number of months worked in the relevant year. The calculation base of this bonus shall be the employee's average salary over the preceding 3-month period. |
| Additional Bonus (Doble Aguinaldo) | 1 month's salary | This is payable if the annual GDP growth exceeds 4.5%. |
| Seniority Bonus | Varies according to the employee's length of service | This is payable to employees who have worked for more than 2 continuous years. |
Employees who have worked for more than 2 continuous years are entitled to receive a seniority bonus that is reflected as an increase in their salary. This bonus changes with the employee's length of service and is calculated on the basis of 3 times the national minimum wage.
| Length of service | Seniority bonus |
|---|---|
| 2–4 years | 5% |
| 5–7 years | 11% |
| 8–10 years | 18% |
| 11–14 years | 26% |
| 15–19 years | 34% |
| 20–24 years | 42% |
| 25 years and over | 50% |
In addition to all the aforementioned bonus, employers who have made profit by the end of the relevant year shall also be obligated to grant their employees who have at least 3 months of service a share in said profits.
| % of profits shared | Amount each employee is entitled to | Deadline |
|---|---|---|
| Up to 25% of net profits | 1 month's salary, prorated according to the number of months worked in the year | Within 30 days following the date of legal approval of the respective balance sheet |
Note: If the employer's profits are insufficient to cover the employee's entitled amount, they shall be prorated accordingly.
Termination
Employees in Bolivia are protected from arbitrary dismissals without just cause, and there are no statutory notice period for those dismissed for just cause.
Just cause for dismissals include intentionally causing material damage to work instruments, disclosure of industrial secrets, omissions or imprudence that affect workplace safety and hygiene, total or partial breach of their work agreement or internal regulations, and theft or robbery.
Notice Period
The termination of an employee who is engaged in an indefinite employment contract and has at least 3 months of uninterrupted service shall only be done after observing the following notice period:
| By the employee | By the employer |
|---|---|
| 30 days | 90 days |
Employees who are given prior notice of dismissal can choose to either accept or reject the notice on the basis that the employer lacks just cause as established under the General Labor Law or internal work regulations, if applicable.
Severance Pay
When the employee is terminated for reasons beyond their control, they shall be paid severance equivalent to a month's salary for each year of continuous service.
If the employee has yet to complete a year of service, the amount of severance they are entitled to shall be prorated according to the number of months worked, discounting their trial period.
Note: Employees who are justly dismissed are generally not entitled to receive any severance pay upon their dismissal.
Probationary Period
An indefinite-term employee's first 3 months of service are generally considered to be a trial period.
Work Time Rules
Standard Working Hours
Standard working hours in Bolivia are subject to a maximum of 8 hours per day and 48 hours per week.
| Maximum working hours for women and minors under 18 years old | Maximum working hours for night work (8:00 p.m.–6:00 a.m.) |
|---|---|
| 40 hours per week during the day | 7 hours per night, though certain professions may have their own special regulations |
Break Period
Employees shall not work more than 5 continuous hours without break, and the ordinary working day shall be interrupted by one or more breaks, the duration of which shall not be less than 2 hours in total.
Furthermore, in addition to their regular break, employees shall have no less than an hour of rest per day during their breastfeeding period.
Overtime
At the request of the employer, the Labor Inspection may grant permission for overtime up to a maximum of 2 hours per day. Overtime work shall be paid with a 100% surcharge.
Note: Overtime is not considered to be that which the worker spends on correcting their mistakes.
Weekly Rest Days
Sundays are generally not considered working days, and employees shall not be required to perform any work during such days.
Those required to work on Sundays shall be paid triple their usual salary.
Holiday and Leave Entitlements
Public Holidays
Public holidays are generally not considered working days, and employees shall not be required to perform any work during such days. There are 11 days of public holidays in Bolivia for 2024.
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Plurinational State Day | January 22 |
| Carnival | February 12–13 |
| Good Friday | March 29 |
| Labor Day | May 1 |
| Corpus Christi | May 30 |
| Aymara New Year | June 21 |
| National Day | August 6 |
| All Souls' Day | November 2 |
| Christmas Day | December 25 |
Those required to work on public holidays shall be paid with a 100% surcharge.
Annual Leave
Employees with at least a year of uninterrupted service shall be entitled to the following paid annual leave:
| Length of service | Annual leave |
|---|---|
| 1–5 years | 15 days |
| 5–10 years | 20 days |
| 10 years and over | 30 days |
Employers are responsible of making sure that their employees enjoy their annual leave entitlements, though a written agreement can be made in advance to have any unused leave be accrued.
Sick Leave
If an employee is absent from work due to illness, 75% of the employee's insured earnings are paid after a 4-day waiting period for up to 26 weeks in the form of a sickness benefit. This may be extended to 52 weeks if continued medical care is needed to prevent permanent disability.
In any case, those who have worked continuously for more than a year and is absent from work due to illness have the right to retain employment without any reduction in pay for the following durations:
| Length of service | Duration of job protection for employees |
|---|---|
| More than 1 year | 3 months |
| 6 months–1 year | 30 days |
| Less than 6 months** | 30 days |
**Those with less than 6 months of service shall have their absence paid at 25%–50% of their salaries, depending on the nature of the employment.
Maternity Leave
Pregnant employees are entitled to 45 days of pre-natal leave and 45 days of post-natal leave, which can be further extended in the event of any illness or complication related to the pregnancy. These employees cannot be terminated from employment in the first year after having a child.
Under the Bolivian Social Security Code, those who meet the contributory requirement shall be entitled to receive a maternity benefit equivalent to the prevailing minimum wage, plus 70% of the employee's salaries above the minimum wage.
To enjoy their leave, employees are usually required to provide their employers with the certificate containing the expected date of delivery
Paternity Leave
Employees are entitled to 3 days of fully paid paternity leave from when their spouse gives birth, provided that the appropriate certificate proving the child's birth is provided.
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