Payroll and Benefits Guide Bolivia

Last updated: May 03, 2023

Boliviano (BOB)
Employer Taxes
Payroll Frequency
Employee Costs
Date Format
Fiscal Year
1 January- 31 December



Employer Payroll Contributions




Professional Risk Premium


National Healthcare


Employer Solidarity Contribution


Total Employment Cost


Employee Payroll Contributions


Long-term SSO Contribution (Disability, Old Age and Death)


Common Risk


Pensionary Fund Commission


Solidarity Contribution for Pension


Total Employee Cost


Employee Income Tax

13.00% Flat Rate

Employer taxes


Employee taxes


Minimum Wage


The monthly minimum wage in Bolivia is 2,250 BOB.




Payroll Cycle

Salaries are paid monthly on the last day working day of the month. 

13th Salary

A 13th salary is required at the end of the year and is equivalent to one month’s pay (Aguinaldo). The Christmas bonus is not subject to tax and social security contributions.  

14th-month is also a mandatory bonus if GDP is over 4.50% or makes annual profits. All employees must receive one additional monthly salary, subject to a cap of 25.00% of the company’s profits (Profit bonus (Prima). 

Working Hours


Standard working hours within Bolivia are 8 hours per day, up to a maximum of 6 working days. 


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. 

Working Week

Monday–Saturday (Many people work Saturdays either half day or full day)


Paid Time Off

Paid leave in Bolivia is outlined in the employment contract as a minimum of 15 days paid leave a year (following completion of 1-year service) in addition to public holidays.  

This increases to 20 days paid leave once the employee has been employed for five years and increases after ten years of service to 30 days paid leave per year. 

Vacation Days
Public Holidays

Public Holidays

There are 10 public holidays.

Sick Days

All employees are entitled to up to 26 weeks of paid sick leave per year and must provide a medical certificate within 48 hours of the first day of sickness.     

The employer pays the sick pay at 100.00% of the regular salary rate (to be reimbursed at a rate of 75.00% from the social security) from the 5th day of sickness. 

Maternity Leave

All female employees are eligible for maternity benefits, consisting of 90 days paid maternity leave, 45 days before the due date, and 45 days after. 

The employer will pay the maternity benefit at 100.00% of the national minimum wage; the employer will receive a reimbursement of 90.00% from social security. 



Paternity Leave

The father is entitled to mandatory paid paternity leave of 3 days. 

Parental Leave

There are no provisions in the law regarding parental leave.

Other Leave

There is no other statutory leave in Bolivia. 


Termination Process

The termination process is standard in Bolivia based on the prescribed list of termination reasons contained within article 16 of the General Labour Law unless an employer can provide sufficient cause for dismissal without notice.   

Notice of termination must be in writing and sent to the relevant governmental authorities. 

Notice Period

According to Bolivian labor law, there is no mandatory notice period. 

Severance Pay

In Bolivia, severance pay is mandatory if applicable. Still, the amount differs based on the type of termination, i.e., termination by an employee, termination by mutual agreement, termination without cause, and termination with a cause in an indefinite term agreement and fixed-term agreement.  

It is common for a severance payment to be calculated as one month’s regular salary payment for each completed year of service. 

Probation Period

Probation periods in Bolivia for permanent employees are generally between 1 and 3 months.



Any foreigners coming to work in Bolivia will need to be registered with the Labour Ministry.  

Foreign employees do not require work permits, but their work agreements must be registered with the Bolivian labor authorities within 90 days of signing. Employees need a special purpose visa to sign the agreement and a one-year residence visa.



The standard rate of VAT in Bolivia is 13.00% 

Stay up to date on payroll & employment law changes

Version History

July 31, 2022
The monthly minimum wage in Bolivia is now 2,164 BOB.

Questions & Answers

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Nelson H.
Nelson H.
1 year ago

Hi, is it possible to receive pay in lieu of annual vacation?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Nelson H.

It is not possible to compensate for annual paid holidays unless the employment agreement is terminated. However, it is possible to accrue unused annual paid leave if there is a written agreement.

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Payroll and Benefits Guide
in Bolivia

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Bolivia 2023
Day Date Holiday Notes
Sunday Jan-1 New Year’s Day
Sunday Jan-22 Plurinational State Foundation Day
Monday Feb-20 Shrove Monday
Tuesday Mar-21 Shrove Tuesday
Friday Apr-7 Good Friday
Monday May-1 Labor Day
Thursday Jun-8 Feast of Corpus Christi
Wednesday Jun-21 Andean New Year’s Day
Sunday Aug-6 National Day
Thursday Nov-2 All Saints' Day
Monday Dec-25 Christmas Day