4. Types of leave

There is no information about the types of leave for this country.
Learn more about 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

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.

Parental leave

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

Other leave

5. Employment termination

There is no information about employment information for this country.

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.

Probation period

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

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.

6. Working hours

There is no information about the working hours for this country.

General working schedule

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.

7. Minimum wage

There is no information about the working hours for this country.

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.

8. Employee benefits

There is no information about the working hours for this country.

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.

9. Taxes

There is no information about the working hours for this country.

Corporate tax

Companies in Bolivia are subject to a corporate tax rate of 29 percent.

Individual income tax

Individuals in Bolivia are imposed an income tax rate that ranges from 0 to 25 percent. The actual percentage varies depending on the income tax bracket the individual belongs to.

VAT, GST and sales tax

The standard rate for the value-added tax (VAT) or goods and sales tax (GST) in Bolivia is set at 13 percent.

10. VISA and work permits

There is no information about the working hours for this country.

Any foreigners who come to work in Bolivia must register with the Ministry of Labor. Foreign workers do not need work visas, but their employment contracts must be filed with Bolivian labor authorities within 90 days after signing. Employees must have a special purpose visa and a one-year resident visa to sign the agreement.

11. Employer Of Record service terms

There is no information about the working hours for this country.

Employment contracts

The names of all parties involved.

The employed party’s personal data.

The nature of the employee’s position.

The duration of the contract.

The payment period, method, and amount of the worker’s salary.

The employer’s strategy for measuring work (time, units of work, etc.).

The place of work.

The employee’s heir(s).

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

Bolivian boliviano (BOB)

13.Opening a subsidiary in Bolivia

There is no information about the working hours for this country.

How to set up a subsidiary

Many nations need you to come to their country and set up your company in person. You may complete the setting procedure without traveling or sending representatives thanks to Bolivian subsidiary legislation. However, there are a few procedures you'll need to do if you want to set up a subsidiary in-country.

If you intend to establish a subsidiary for your business in Bolivia, you will need:

Business visas are required for any investors who want to remain in the country for more than 30 days.

1. An advocate.

2. Office space was rented or acquired.

3. A minimum share capital of $1 is required (USD).

4. All essential paperwork, the majority of which will be gathered by your attorney.

Subsidiary laws

There is currently no information regarding the subsidiary laws in the Plurinational State of Bolivia.

13. Why choose Rivermate as your Employer of Record / PEO in Bolivia

Establishing an entity in

Bolivia

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

Bolivia

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

Bolivia

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

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

via our Employer of Record / PEO solution.

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