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Bolivia is a country in western-central South America. Its official name is the Plurinational State of Bolivia. La Paz is the seat of government and the executive capital, whereas Sucre is the constitutional capital. Santa Cruz de la Sierra, the biggest city and main industrial hub, is situated in the Llanos Orientales (tropical lowlands), a relatively flat area in the country's east.
Bolivia is a constitutionally unitary sovereign state organized into nine departments. Its landscape ranges from the Andes highlands in the west to the Eastern Lowlands in the Amazon basin. 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 nation. Bolivia is the fifth largest country in South America, after Brazil, Argentina, Peru, and Colombia (and, along with Paraguay, one of the only two landlocked countries in the Americas), the world's 27th largest, the largest landlocked country in the Southern Hemisphere, and the world's seventh-largest landlocked country, after Kazakhstan, Mongolia, Chad, Niger, Mali, and Ethiopia.
The country's estimated 11 million inhabitants are multiethnic, including Amerindians, Mestizos, Europeans, Asians, and Africans among them. Although Spanish is the official and main language, 36 indigenous languages have official status, the most widely spoken of which are Guarani, Aymara, and Quechua.
The Andean portion of Bolivia was part of the Inca Empire prior to the Spanish invasion, whereas the northern and eastern plains were populated by separate tribes. In the 16th century, Spanish conquistadors from Cusco and Asunción acquired control of the area. Bolivia was controlled by the Real Audiencia of Charcas during the Spanish colonial era. Spain's empire was formed in significant part on the silver produced from Bolivia's mines. Following the initial demand for independence in 1809, the Republic of Simón Bolvar was established after 16 years of struggle. Bolivia lost sovereignty of various peripheral lands to neighboring nations throughout the nineteenth and early twentieth centuries, notably the takeover of its coastline by Chile in 1879. Bolivia was politically stable until 1971 when Hugo Banzer staged a CIA-backed coup that replaced Juan José Torres' socialist government with a military dictatorship commanded by Banzer. Banzer's dictatorship repressed left-wing and socialist opposition, as well as various kinds of protest, culminating in the torture and murder of many Bolivian civilians. Banzer was deposed in 1978 and eventually returned as Bolivia's freely elected president from 1997 to 2001. Evo Morales' administration from 2006 to 2019 experienced tremendous economic development and political stability.
Bolivia is a founding member of the United Nations, IMF, NAM, OAS, ACTO, Bank of the South, ALBA, and USAN. Bolivia is the second poorest nation in South America, despite having reduced poverty rates and the fastest expanding economy in the region (in terms of GDP). It is a developing nation with a high Human Development Index value. Agriculture, forestry, fishing, mining, and manufacturing commodities such as textiles, clothes, refined metals, and refined petroleum are its key economic activities. Bolivia is abundant in minerals such as tin, silver, lithium, and copper.
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.
There are ten public holidays in Bolivia.
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.
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.
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.
There are no provisions in the Bolivian law regarding parental leave.
Employers can typically terminate an employment contract by giving the employee notice.
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.
The probation period in Bolivia has a maximum of three months.
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.
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.
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.
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.
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.
Companies in Bolivia are subject to a corporate tax rate of 29 percent.
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.
The standard rate for the value-added tax (VAT) or goods and sales tax (GST) in Bolivia is set at 13 percent.
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.
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).
There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.
Bolivian boliviano (BOB)
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.
There is currently no information regarding the subsidiary laws in the Plurinational State of Bolivia.