Guide to employment, payroll and benefits in

Bolivia (Plurinational State of)

Rivermate offers complete payroll, benefits and compliance services for

Bolivia (Plurinational State of)

01. Overview

Last updated: 

August 19, 2021

Currency
Boliviano
Capital
Sucre
Ease of doing business
Language
Spanish
Population
11673021
GDP growth

02. Grow your team in

Bolivia (Plurinational State of)

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Bolivia (Plurinational State of)

, particularly if you don't have established local relationships. You can hire employees in

Bolivia (Plurinational State of)

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Bolivia is a landlocked country in western-central South America, formally known as the Plurinational State of Bolivia. Sucre is the legislative capital, while La Paz is the seat of government and executive capital. Santa Cruz de la Sierra, the country's largest city and main industrial center, is situated on the Llanos Orientales, a largely flat area in the country's east. Bolivia is a constitutionally unitary sovereign state divided into nine departments. Its terrain ranges from the Andes peaks in the west to the Amazon basin's Eastern Lowlands in the east. Brazil borders it on the north and east, Paraguay on the southeast, Argentina on the south, Chile on the southwest, and Peru on the northwest. The Andean mountain range encompasses one-third of the land. Bolivia is the fifth largest country in South America, after Brazil, Argentina, Peru, and Colombia, as well as the world's 27th largest country, the largest landlocked country in the Southern Hemisphere, and the world's seventh largest landlocked country, after Kazakhstan, Mongolia, Chad, Niger, Mali, and Ethiopia, with a total area of 1,098,581 km2. The population of the country, estimated at 11 million people, is multiethnic, with Amerindians, Mestizos, Europeans, Asians, and Africans among them. The official and prevalent language is Spanish, but there are 36 indigenous languages with official status, the most widely spoken of which are Guarani, Aymara, and Quechua. The Andean area of Bolivia was part of the Inca Empire before Spanish colonization, while the northern and eastern lowlands were home to separate tribes. In the 16th century, Spanish conquistadors from Cusco and Asunción conquered the area. Bolivia was administered by the Real Audiencia of Charcas during the Spanish colonial era. Spain's empire was based in large part on silver mined from Bolivia's mines. After the first call for independence in 1809, 16 years of war followed until the Republic, named after Simón Bolvar, was established. Bolivia lost possession of many peripheral territories to neighboring countries during the nineteenth and early twentieth centuries, including the conquest of its coastline by Chile in 1879. Bolivia remained politically stable until 1971, when Hugo Banzer led a CIA-backed coup d'état that replaced Juan José Torres' socialist government with a military dictatorship led by Banzer; Torres was assassinated by a right-wing death squad in Buenos Aires, Argentina, in 1976. Banzer's government repressed leftist and communist opposition as well as other forms of protest, torturing and killing a number of Bolivians. Banzer was deposed in 1978, but returned to power as Bolivia's newly elected president from 1997 to 2001. Bolivia is a charter member of the United Nations, the International Monetary Fund, the Organization of American States, the Organization of American States, the Organization of American States, the Organization of American States, the Organization of American States, the Organization of American States, the Organization of American States, the Organization of American States, the Organization of American States, the Organization of American States

04. Public holidays

05. Types of leave

Paid time off

An employee is entitled to 15 days of paid unpaid leave after completing one year of work.Employees who have worked for the company for at least 5 years are entitled to 20 days of paid voluntary leave.An employee who has worked for the company for at least ten years is entitled to 30 days of paid unpaid leave.

Public holidays

There are ten public holidays in Bolivia.

Sick days

Employees are paying for sick days beginning on the fifth day of absence and for a total of 26 weeks over the course of a year. A medical certificate showing condition must be presented by the employee. The sick leave will be extended for another 26 weeks if preventive attention can be seen to avoid lifelong injury.An individual is entitled to 100% pay for common ailments. The boss, on the other hand, is entitled to a 75 percent reimbursement from social security.

Maternity leave

Mothers are entitled to a total of 90 days of leave, divided into 45 days prior to the scheduled due date and 45 days after the child's birth. On maternity leave, a woman is paid at 100% of the state minimum wage. The boss, on the other hand, is entitled to a 90% refund from social security.The mother is entitled to a maternal subsidy and a breastfeeding subsidy beginning in the fifth month of birth and continuing until the infant is one year old. All monthly subsidies are the equivalent to one month's wage.Mothers are protected from losing their jobs for a year after their child is born.

Paternity leave

Fathers are entitled to three days of compensation for the birth of an infant. Fathers are protected from losing their jobs for a year after their child is born.

Parental leave

There are no provisions in the Bolivian law regarding parental leave.

Other leave

06. Employment termination

Termination process

Employers can typically terminate an employment contract by giving the employee notice.

Notice period

The notice period is defined by the position and tenure of the employee. If they have an indefinite contract and three months of employment, white collar workers are entitled to a 90-day notice period. A month of service requires seven days notice, fifteen days for six months, and one month for a year.

Severance pay

Severance pay is not provided to employees who are terminated for cause or who resign, unless the resignation occurs after eight years of continuous employment. Severance pay is one month for each year of service and must be paid within 15 days.

Probation period

The probation period in Bolivia has a maximum of three months.

07. Working hours

General

Bolivia's standard workweek is 48 hours. Employees work an average of eight hours per day for six days. This does not apply to managers, whose workdays may be extended up to 12 hours. For younger employees, work hours are reduced.


Male employees cannot work more than 48 hours per week, while female employees cannot work more than 40 hours per week. The daytime hours of operation are 6 a.m. to 8 p.m. Shift workers' hours may be extended.


Night work is defined as hours worked between 8 p.m. and 6 a.m. Employees may work no more than seven hours per night and must receive a salary increase of 25% to 50% for hours worked during the night period. Salary increases should be proportionate to the nature of the work and the employee's circumstances.


If a day shift exceeds five hours, workers must receive a two-hour break. After three and a half hours, night workers may take a break.

Overtime

The labor inspection authority must approve overtime. Once approved, overtime may not exceed two hours per day. Overtime is compensated at a rate of 200 percent of regular pay for both work performed on a non-working day and overtime hours. Employees must be compensated three times their regular salary for Sunday work.

08. Minimum wage

General

Bolivia's government adjusts the minimum wage annually to ensure that all workers receive an increase. The minimum wage was 2,164 bolivianos (BOB) per month as of May 2021.


Employees are eligible to receive a tax-free Christmas bonus equal to one month's salary. Additionally, employees receive a second holiday bonus if the economy grows by at least 4.5 percent annually. Additionally, employers must distribute 25% of their profits to employees, with a minimum payment of one month.

09. Employee benefits

General

Bolivia's universal health care system ensures that employees get free medical treatment. Employers may be liable for reimbursing their workers for private health care in certain situations. Numerous companies opt to pay for their employees' private health insurance.

These are voluntary enhancements to mandatory social security contributions. Employers and workers both contribute to the short and long-term social security systems. These perks include paid sick leave and pension contributions. Employers are required to register each employee for social security benefits during the first five days of employment.

Special advantages are often available. Employers may negotiate with applicants prior to writing the employment contract's provisions.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Bolivia (Plurinational State of)

to hire a team takes time, money, and effort. The labor law in

Bolivia (Plurinational State of)

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Bolivia (Plurinational State of)

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Bolivia (Plurinational State of)

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Bolivia (Plurinational State of)

via our Employer of Record / PEO solution.

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