Hire in Bolivia

Bolivia PEO &

Employer of Record

Hire & manage teams remotely in Bolivia without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

Spanish

Salary Currency

Boliviano (BOB)

Capital city

Sucre

Time zone

UTC -4

EOR in Bolivia

from $470/ month

Hire Employees in Bolivia

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services in Bolivia to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in Bolivia

Employer of Record (EOR) services are for companies who do not have a legal entity in Bolivia, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Bolivia.

2. Employee Onboarding

We sign a local labor contract with your employees based in Bolivia.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Bolivia.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll & PEO in Bolivia

Professional Employment Organization (PEO) services are for companies who have a legal entity in Bolivia, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

Employee Income Taxes:

Individual income tax rates in Bolivia are based on progressive tax brackets.

In Bolivia, the income tax system for employees is administrative, meaning that it is the employer’s responsibility to withhold and remit income tax on behalf of their employees. This system simplifies the process for employees, as they do not need to declare their income tax directly to the government. Bolivia employs a progressive individual income tax system, known as the “Impuesto sobre las Utilidades de las Personas” (IUP) or Personal Income Tax. Here’s how the tax brackets are structured:

Tax Brackets:

Sample Calculation

0%: BOB 0 to BOB 13,000
10%: BOB 13,000 to BOB 24,000.
15%: BOB 24,000 to BOB 35,000.
20%: BOB 35,000 to BOB 48,000.
25%: over BOB 48,000.
Yearly income = BOB 50,000
0% * BOB 13,000 = BOB 0
10% * BOB 11,000 = BOB 1,100
15% * BOB 11,000 = BOB 1,650
20% * BOB 13,000 = BOB 2,600
25% * BOB 2,000 = BOB 500
BOB 0 + BOB 1,100 + BOB 1,650 + BOB 2,600 + BOB 500 = BOB 5,850
Yearly income tax = BOB 5,850

Employer Contribution

Employers in Bolivia are required to make significant contributions on behalf of their employees, which include:

Pension contribution: 10% of gross salary
Professional risk contribution: 1.71%
Common risk contribution: 1.71%
Housing contribution: 2%
Health insurance: 10%
These contributions ensure that employees are covered under various social security benefits.

Employee Contribution

Employers in Bolivia are required to make significant contributions on behalf of their employees, which include:

Pension contribution: 10% of gross salary
Professional risk contribution: 1.71%
Common risk contribution: 1.71%
Housing contribution: 2%
Health insurance: 10%
These contributions ensure that employees are covered under various social security benefits.

Social Security

Social security in Bolivia covers pension, healthcare, and risks associated with professional activities, funded through contributions from both employers and employees.

Pension Fund

Both employers and employees in Bolivia contribute to the pension fund, which provides retirement, disability, and survivor benefits.

Healthcare Insurance

Healthcare insurance contributions are also split between the employer and the employee, each contributing 10% of the gross salary to ensure comprehensive health coverage.

Working Hours Per Week

The standard working hours in Bolivia are 48 hours per week, typically spread over six days from Monday to Saturday.

Overtime

Overtime work in Bolivia is compensated at a rate of 100% above the normal hourly wage for weekdays and 200% for Sundays and holidays.

Legal grounds for termination in Bolivia include misconduct, lack of performance, mutual agreement, and economic reasons necessitated by the employer.

Severance

Severance payment in Bolivia depends on the length of service, typically calculated as one month’s salary for every year of service.

Notice Period

The required notice period for employers in Bolivia is at least 90 days for termination. Employees who wish to resign must give a notice period of 30 days.

Employment Contract

Labor contracts in Bolivia must include terms such as job description, compensation, benefits, working hours, and termination conditions. Contracts must also specify the duration of the probation period, if applicable.

Probation Period

The maximum legal probation period in Bolivia is three months.

Annual Leave

Employees are entitled to 15 working days of paid annual leave per year after one year of continuous service.

Sick Leave

Employees can take up to 26 weeks of paid sick leave per year, provided they have a medical certificate.

Maternity Leave

Women are entitled to 90 days of paid maternity leave, split before and after childbirth.

Paternity Leave

Fathers in Bolivia are granted 3 days of paid paternity leave.

Public Holidays

  • January 1: New Year’s Day
  • January 22: Plurinational State Day
  • February 2: Oruro Carnival
  • Good Friday (date varies)
  • May 1: Labor Day
  • June 21: Aymara New Year
  • August 6: Independence Day
  • November 2: All Souls’ Day
  • December 25: Christmas Day
  • Resources

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