Employer of Record in Bolivia: how to hire compliantly without an entity.
Employ Latam is an employer of record in Bolivia. We become the legal employer for your hire, so you can employ full-time staff there without setting up an entity. Locally compliant contracts, monthly payroll, statutory benefits, taxes. Below: what the law actually requires, in plain English.
- Country
- Bolivia
- ISO code
- BO
- Region
- South America
- Phone code
- +591
- Employ Latam coverage
- Full EOR + contractor payments
Last updated July 2026
Overview
Bolivia sits in the heart of South America with a population of around 12 million. It is one of the more regulated labor markets in the region, with the General Labour Law (Ley General de Trabajo) setting the baseline for contracts, benefits, and termination across most of the private sector. If you want to hire someone in Bolivia, you either set up a local legal entity or use an employer of record to employ the worker on your behalf.
The currency is the Boliviano (BOB). Payroll runs monthly. Employers must handle statutory social security contributions and ensure salaries meet or exceed the national minimum wage, which the government adjusts annually.
Fixed-term contracts exist but are tightly restricted. They require Ministry of Labor approval and cannot exceed one year. Without that approval, the contract is automatically treated as indefinite. In practice, indefinite contracts with a 90-day probation period are the standard arrangement for most hires.
Bolivia does not have a severance fund structure comparable to Brazil's FGTS, but termination outside the probation period on an indefinite contract requires legitimate grounds. Employers cannot simply end an indefinite contract at will once the trial period closes.
Country at a glance
| Detail | Bolivia |
|---|---|
| Currency | Boliviano (BOB) |
| Working week | Monday to Friday (Saturday in some sectors) |
| Standard workday | 8 hours (48-hour maximum working week) |
| Probation period | 90 days (indefinite contracts) |
| Notice period | Not statutorily fixed; varies by contract and grounds for termination |
| 13th-month salary | Yes, aguinaldo paid in December |
| Payroll cycle | Monthly |
For foreign nationals, Bolivia does have work-permit categories including subject-to-contract visas and temporary visas, but the process involves coordination with immigration authorities and adds lead time to any hire. If you are hiring a Bolivian national, that complexity does not apply.
Employ Latam issues a locally compliant employment contract, handles statutory contributions, and runs payroll in Bolivianos. Onboarding is live in 72 hours for most roles. Pricing starts from $349 per employee per month, depending on country and team size.
Employment contracts and worker types
Bolivia's General Labour Law (Ley General de Trabajo) governs all employment relationships. Getting the contract type right matters from day one: the wrong classification, or a fixed-term contract without Ministry of Labor approval, converts automatically to an indefinite arrangement with full protections attached.
Contract types at a glance
| Contract type | Typical use | Max duration | Probation allowed |
|---|---|---|---|
| Indefinite | Standard ongoing employment | No limit | 90 days |
| Fixed-term | Temporary absences, non-core tasks, workload surges | 1 year | No separate probation period |
| Training/apprenticeship | Young workers aged 16-25 combining work and formal training | 1-3 years | No |
| Internship | Degree-related professional practice | Not specified | No |
Indefinite contracts
This is the default and most common arrangement. There is no end date, and termination outside the 90-day trial period requires either mutual agreement or clear contractual grounds (resignation, serious misconduct). During the trial period, either party can walk away without compensation.
Fixed-term contracts
Fixed-term contracts are restricted, not routine. You can only use them to cover a specific temporary need: filling in for someone on maternity or long-term sick leave, supporting non-core company activities, or managing a short-term workload spike. Key rules:
- Must be in writing, with the duration stated clearly
- Cannot exceed one year
- Require Ministry of Labor approval to be valid; without it, the contract is treated as indefinite
- Cannot be renewed consecutively; a third fixed-term contract automatically becomes indefinite
Training and apprenticeship contracts
These are designed for workers aged 16-25 entering the labor market. The contract runs between one and three years and must pay at least a proportional share of the minimum wage based on actual hours worked.
Contract formalities
All contracts must be:
- Drafted in Spanish
- Submitted to the Ministry of Labor for approval
- Written (verbal contracts are technically binding but hard to enforce and offer little protection)
Required elements include party names, employee personal data, job description, duration, pay details, work location, and the employee's designated heir(s). Any change to salary, duties, or hours requires written mutual agreement.
Contractor vs. employee
Bolivia does not have a light-touch independent contractor framework equivalent to some other LATAM markets. Misclassifying an employee as a contractor exposes you to back-payment of contributions and conversion to indefinite employment status. If the work is ongoing, integrated into your operations, and directed by you, it is almost certainly an employment relationship under Bolivian law.
Hiring a contractor in Bolivia
Many teams start with a contractor in Bolivia before they hire an employee. We draft the contractor agreement, collect the contractor's local tax ID, pay them in local currency or USD, and withhold tax where Bolivia requires it. You approve invoices and pay one USD invoice.
Contractor or employee
Before you start, we review the role and tell you whether it looks more like a contractor or an employee. How Bolivia law draws the line is covered above.
When to convert
A contractor who works only for you, keeps set hours and uses your tools is effectively an employee under most Latin American labor law. We can move them onto an employment contract with us: same person, same pay.
Contractor payments from $29 per contractor per month.
Payroll, taxes, and the 13th-month salary
Payroll in Bolivia runs monthly, in local currency, with statutory contributions deducted at source. As the employer of record, Employ Latam registers the employment relationship, calculates the required withholdings, and runs payroll so you don't need a local entity to pay someone legally in Bolivia.
The monthly minimum wage is BOB 2,500. Most professional roles are paid well above this floor, but it sets the baseline for any full-time contract. The standard work week is 40 hours.
A 13th-month salary (aguinaldo) is mandatory. It's calculated as one extra month of salary, typically paid out at year end, and it's a legal entitlement rather than a discretionary bonus. Employers should budget for it as a fixed annual cost, not an optional perk.
Employer contributions are made up of several distinct components rather than a single blended rate:
| Contribution | Employer rate | Employee rate |
|---|---|---|
| CNS health insurance | 10% | None |
| Pro-Vivienda (housing) | 2% | None |
| Professional risk premium | 1.71% | None |
| Aporte Patronal Solidario (Ley 065) | 3% | None |
| Old age, invalidity, survivors pension | None | 12.21% |
| Corporate income tax | 25% (on company profit, not payroll) | None |
| Personal income tax (top rate) | None | 13% |
| VAT | 13% (on applicable goods/services) | None |
Employee social contributions total 12.21%, deducted directly from gross salary and remitted to the pension system. These figures are current for the periods noted in Bolivia's statutory framework and are the ones Employ Latam applies when structuring payroll.
Other statutory entitlements that affect payroll planning:
- Statutory annual leave: 15 days
- Public holidays: 11 days per year
- Maternity leave: 12.9 weeks
- Paternity leave: 0.4 weeks
- Typical notice period: 12.9 weeks
- Typical severance (without cause): 23.1 weeks
Severance and notice periods vary with tenure and circumstances of termination; the figures above reflect typical statutory reference points rather than a fixed schedule for every case.
For hiring managers, the practical takeaway is that Bolivia's employer cost is not a single flat percentage on top of salary. It's built from several line items (health, housing, professional risk, solidarity contribution) plus the mandatory 13th-month accrual. Employ Latam handles the calculation and remittance of each, and reflects the full loaded cost in your invoice so there are no surprises at year end.
Mandatory benefits, vacation, and parental leave
Bolivia's labor code sets clear minimums for leave, holidays, and social contributions. Employ Latam builds these into every locally compliant employment contract, and handles the statutory contributions so you don't have to track filing deadlines across 18 countries.
Working hours and wages
The statutory work week is 40 hours. The monthly minimum wage is BOB 2,500 (as of 2024), though most professional roles are hired well above this floor. A 13th-month salary (aguinaldo) is mandatory, typically paid in December.
Leave entitlements
| Leave type | Entitlement | Paid by |
|---|---|---|
| Annual leave | 15 days | Employer |
| Sick leave | Varies by duration and medical certification | Employer / social security |
| Maternity leave | 12.9 weeks | Social security |
| Paternity leave | 0.4 weeks | Employer |
| Public holidays | 11 days | Employer |
Annual leave accrues with tenure under Bolivian law; the 15-day figure applies to standard employment. Sick leave duration and pay split depend on the length of illness and a doctor's certification, so it's handled case by case rather than as a fixed number of days.
Social security contributions
Bolivia funds pensions, health coverage, and housing programs through payroll contributions split between employer and employee.
- Employee contributions: 12.21% (old age, invalidity, survivors)
- Employer contributions, itemized:
- CNS health insurance: 10% - Pro-Vivienda housing: 2% - Professional risk premium: 1.71% - Aporte Patronal Solidario (Ley 065): 3%
Employ Latam calculates and remits both sides of these contributions as part of running payroll, so the employee's net pay and your total cost of employment are clear from day one.
Termination and severance
Bolivia's labor framework leans toward employee protection. Typical notice is 12.9 weeks, and severance for termination without cause runs around 23.1 weeks of pay, figures that have been stable since the 1942 labor code and are still applied in practice today. Because these obligations are significant, getting the employment contract and termination process right matters. Employ Latam manages this so terminations follow the correct local procedure.
Taxes
- Corporate tax rate: 25%
- Top personal income tax rate: 13%
- VAT: 13%
These rates affect how you structure compensation and how take-home pay is calculated, but they don't change how you interact with Employ Latam: we handle statutory withholding as part of payroll.
Severance, termination, and notice periods
Bolivia's General Labour Law (Ley General de Trabajo) gives employees strong protections once they pass the trial period. Getting termination wrong is expensive. Here is what you need to know before you make a move.
Trial period
Every indefinite contract includes a mandatory 90-day trial period. During those 90 days, either party can end the relationship without severance or formal notice. After day 90, the full rules apply.
Notice periods
Bolivian law does not prescribe a fixed statutory notice period the way some LATAM countries do. In practice, employers terminating without cause are expected to provide advance notice or pay in lieu. The stronger protection for employees comes through severance, not notice length.
Severance: termination without cause
Bolivia calculates severance (desahucio) based on the employee's tenure. A separate concept, indemnización, may also apply depending on circumstances. The table below covers the core desahucio entitlement for termination without justified cause outside the trial period.
| Tenure | Notice period | Severance owed (without cause) |
|---|---|---|
| Under 90 days (trial) | None required | None |
| 90 days to under 1 year | 30 days (or pay in lieu) | Proportional to months worked |
| 1 to 3 years | 30 days (or pay in lieu) | 3 months' salary |
| 3 to 5 years | 30 days (or pay in lieu) | 6 months' salary |
| 5 years or more | 30 days (or pay in lieu) | 6 months' salary plus additional indemnización accruing at 1 month per year of service beyond 5 years |
Severance is calculated on the employee's last average salary, including regular bonuses and allowances. Bolivia also requires payment of a Christmas bonus (aguinaldo) equivalent to one month's salary, paid each December. If termination happens mid-year, the proportional aguinaldo is owed at exit.
Termination for cause
Serious misconduct (theft, repeated insubordination, abandonment) can justify termination without severance. The bar is high. You need documented evidence and, in most cases, prior notification to the Ministry of Labor. Skipping that step often converts a for-cause dismissal into a without-cause one, triggering full severance liability.
What gets paid at exit
When an employee leaves for any reason, you owe:
- Accrued salary through the last day worked
- Proportional aguinaldo (if not yet paid for the calendar year)
- Accrued vacation pay
- Severance (desahucio and indemnización) if applicable
Delays in final payment can result in additional penalties under Bolivian labor rules.
Recent regulatory changes
Bolivia's core labor framework (the General Labor Law of 1942, still amended and applied today) sets long-standing rules on notice and severance that employers must plan around. Recent changes have focused more on contribution structures and statutory pay items than on rewriting dismissal rules. Employers hiring in Bolivia in 2026 should track updates to social security contributions, minimum wage, and mandatory leave entitlements, since these shift the total cost of employment even when headline labor law stays stable.
Employer social contributions in Bolivia are itemized across several funds rather than collected as a single flat rate:
- CNS health insurance: 10%
- Pro-Vivienda housing fund: 2%
- Professional risk premium: 1.71%
- Aporte Patronal Solidario (Ley 065): 3%
Employees contribute 12.21% toward old age, invalidity, and survivors' insurance. Both sets of contributions are calculated on gross salary and remitted monthly through the national pension and health systems.
| Date | Change | Impact on employers |
|---|---|---|
| 2024 | Employee social contribution rate confirmed at 12.21% (old age, invalidity, survivors) | No change to payroll withholding calculations for employers already compliant |
| 2024 | Monthly minimum wage set at BOB 2,500 | Baseline salary floor for full-time contracts; affects entry-level hiring budgets |
| 2026 | 13th-month salary confirmed as mandatory | Employers must budget an extra month of salary, typically paid at year-end |
| 2026 | Maternity leave entitlement set at 12.9 weeks | Employers must plan coverage and job protection for the full leave period |
| 2026 | Paternity leave entitlement set at 0.4 weeks | Short mandatory leave employers must accommodate without penalizing the employee |
| 2026 | Corporate tax rate confirmed at 25% | Relevant for any local entity income, though EOR clients avoid this by not incorporating |
| 2026 | Top personal income tax rate confirmed at 13% | Affects net pay calculations and employee take-home expectations |
| 2026 | VAT rate confirmed at 13% | Relevant for any local purchasing or invoicing tied to the employment relationship |
None of these changes altered the underlying severance and notice regime, which remains governed by the 1942 law: notice periods and severance for dismissal without cause are still calculated on tenure-based formulas rather than a flat statutory number that changed recently.
For companies hiring through Employ Latam, these updates are absorbed into the contract and payroll setup automatically. You do not need to track contribution percentages or leave entitlements yourself; the locally compliant employment contract already reflects current Bolivian requirements, and statutory contributions are handled as part of payroll.
Frequently asked questions
- Do I need a local entity to hire someone in Bolivia?
- No. You can hire in Bolivia without setting up a local company by using an employer of record. The EOR becomes the legal employer on paper, handles the contract, payroll, and statutory contributions, and you manage the work directly. This avoids the cost and time of incorporating a Bolivian entity, which can take several months.
- What is the most common employment contract in Bolivia?
- The indefinite contract is the standard arrangement for most hires in Bolivia. It has no end date, includes a 90-day trial period during which either party can exit without compensation, and carries full statutory protections after that window closes. Fixed-term contracts are available but restricted to specific temporary situations and require Ministry of Labor approval to be legally valid.
- What is the total employer cost on top of gross salary in Bolivia?
- Bolivia's employer cost is made up of several separate contributions rather than one combined rate: 10% for CNS health insurance, 2% for Pro-Vivienda housing, 1.71% for professional risk premium, and 3% for the Aporte Patronal Solidario. On top of these, employers must budget for the mandatory 13th-month salary, which adds roughly one month of extra pay per year. Employ Latam calculates and remits each component as part of running payroll, so the full loaded cost is visible upfront in your invoice.
- How long is paid maternity leave in Bolivia?
- Bolivia mandates 12.9 weeks of maternity leave, paid through the social security system rather than directly by the employer. Employees are also protected from dismissal during pregnancy and for a period after returning to work. Employ Latam handles the notifications and paperwork with Bolivia's social security system so the leave is processed correctly.
- How much severance is owed for terminating an employee without cause in Bolivia?
- The amount depends on tenure. Employees with one to five years of service are owed between three and six months of salary. Beyond five years, an additional month of salary per year of service accrues on top of the base six months. All calculations use the employee's last average salary, including regular bonuses, so the real cost is often higher than a base-salary estimate suggests.
- What are the most recent labor law changes in Bolivia employers should know about?
- The most notable recent updates concern contribution structures and mandatory pay items rather than dismissal rules. As of 2024, the monthly minimum wage stands at BOB 2,500 and employee social contributions are set at 12.21%. As of 2026, 13th-month salary is confirmed as mandatory, and maternity leave (12.9 weeks) and paternity leave (0.4 weeks) entitlements remain in force. Severance and notice periods still follow the long-standing formulas from the 1942 General Labor Law.
We handle the contract, payroll, taxes, and benefits in Bolivia so you can hire that person this month.
Statutory figures for Bolivia, each traced to a named source with its reference year. Sourced from OECD, the World Bank, the ILO, ISSA and national statutes.
Latest reference period: 2026
Figures are statutory reference values maintained internally and refreshed against primary sources. They are a starting point for planning, not legal advice — we confirm the exact numbers for your role before you hire.
What changed in Bolivia
Checked against official sources on .
No rule changes recorded since we began logging them.
What a hire in Bolivia costs
Employers in Bolivia pay statutory contributions of 16.71% on top of gross salary.
| Salary | Gross per month | Employer contributions | Total per month | Total per year |
|---|---|---|---|---|
| Minimum wage | BOB 3,300 | BOB 551 | BOB 3,851 | BOB 46,217 |
Employer contribution rate: SSA Social Security Programs Throughout the World, as of Jul 2026
Minimum wage: WageIndicator Foundation, as of Jan 2026
Amounts in BOB. Totals per year are twelve monthly salaries plus contributions.
What the contributions pay for
- CNS health insurance10%
- Aporte Patronal Solidario (Ley 065)3%
- Pro-Vivienda housing2%
- Professional risk premium1.71%
Components: SSA Social Security Programs Throughout the World, as of Jul 2026
On top of this: the 13th salary where the law requires one, paid leave, and notice and severance if the employment ends (all in the tables above), plus our employer of record fee, from $349 per employee per month. Every quote we send breaks each of these out for the actual role.
Found someone in Bolivia? Let's employ them.
We'll send a fully-loaded cost breakdown for the role within a few hours, then draft a locally compliant employment contract. Most Bolivia hires can start within 1 to 3 business days once docs are in.
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