Employer Record in Bolivia

Basic information

Capital: Sucre

Time zone: GMT-4

Languages: Spanish

Currency code: BOB

Human Resources at a Glance 

Contract Terms

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties. A contract must include:

• name
• start date
• length of the employment
• job description
• termination conditions
• applicable regulations
• the object of the contract
• remuneration
• worker’s rights
• the obligations of the worker

Guidelines Regarding Probation Period/Trial Period

Probation periods are mandatory. The probation lasts 90 days.

Regulations and Rules Regarding Working Hours

Standard working hours are 8 hours per day, and 40 hours per week. The standard workweek is from Monday to Friday.

Overtime is paid according to the following rates

All work more than the standard working hours a week is to be paid as overtime and is regulated by employment contract/collective agreements. In general, overtime maximum limits are set at 2 hours per day and paid 200.00% of the standard salary rate.

Minimum Wage Requirements

The minimum wage is BOB 2,250 per month. The minimum wage is updated every May 1° by the supreme court.

Payroll Cost for Employers

The employer cost is generally estimated at 16.71% of the employee salary. Monthly employer costs:

• Social Security – 3%
• Professional Risk Premium – 1.71%
• Public Health Insurance – 10%
• Housing (Provivienda) – 2%
• Home office bonus – BOB 200
  Please note: the minimum monthly salary for Social Security, Professional Risk Premium, and Housing (Provivienda) contributions is BOB 2,363.
  One-off cost:
• Mandatory Wet Ink Employment Agreement Handling Fee – USD 80
  Annual costs:
• Medical Exam (Onboarding) – BOB 200
• Medical Exam (Offboarding) – BOB 200
• 13th Month Salary (Christmas Bonus) – 1-month salary
  Please note: by law, salaries are mandatorily adjusted every year in January by approximately 3%.

Termination

Grounds

Termination of the contract must comply with complex rules and the rules of the employee’s country/region. Separations are always handled by the employer in conjunction with key stakeholders. It may include interim fees as well as requirements or recommended steps for a particular termination case.

Bolivia’s termination could be complicated. Termination of compliance includes:

Employee voluntary

Reason for termination:

Intentional material damage caused by working instruments

Disclosure of company privacy

Breach of agreement in whole or in part

Workers steal or rob.

On the expiration of the contract

Notice Period

In Bolivia, the law does not provide for a notice period. However, the parties usually agree to a maximum notice of 30 to 90 days.

Severance compensation

In Bolivia, all employees who are terminated as a voluntary retirement are entitled to severance pay after 5 years of employment or without just cause. Severance pay is 30 days of salary per year of service.

Payment & leave Compensation & Holidays

SalaryPayment

Monthly

Payslip Payroll

No explicit provision

Annual Leave

Full-time and part-time employees are entitled to a minimum of 15 working days of paid time off (PTO) a year. PTO and accrual rate varies depending on the length of services. Employees are eligible for annual leave after 12 months of work.

Sick Leave

Employees are entitled to unlimited paid sick leave. This leave is paid at different rates and by different payers depending upon length:

• Up to the third day, the employee will receive 100% of the base salary paid by the employer
• From the fourth day, the employee will receive 75% of the base salary paid by Social Security

Maternity & Parental Leave

Employees, who have worked for 120 consecutive days, are entitled to 90 days of paid leave. 45 days must be taken before the child’s birth. The employee will receive 100% of the salary during this period, the employer will pay the wages, and Social Security will reimburse 90% of the wage.

Bolivia has no parental leave policy. However, employees can request a license due to accidents or serious illnesses of children under 12 years of age. The length is 3 days with 100% of their salary.

Tax and Social Security Information

Personal Income Tax

The individual income tax is a flat rate of 13%

Social security

• Housing Fund
• Public Health Insurance
• State Pension Fund
• Worker Compensation Accident Insurance
• Private Healthcare – Allianz (optional)

Public Holidays 2024