Employer of Record in Bolivia

How an Employer of Record works in Bolivia

An Employer of Record (EOR) in Bolivia provides foreign companies with a simple, legal way to hire in the country without needing to set up their own local entity. Instead, the EOR takes over as the legal employer in the country, handling hiring, onboarding, and compliance, and the foreign employer can focus on managing day-to-day operations.

Rivermate provides EOR services in Bolivia for international companies, and our experienced local partners use their knowledge of hiring in the country to make the process quick, simple, and compliant.

Bolivia labor market: At a glance

The hiring market
Greatest hiring activity:	La Paz, Santa Cruz de la Sierra, and Cochabamba
Hiring timelines:	1–2 weeks for local hires; up to several months for foreign nationals.
In-demand sectors:	Software, tech, oil and gas, professional services.
Sectors with skills shortages:	Highly specialized roles.

The salary market
Employer tax contributions:	17.21% (19.51% for mining employers).
Minimum wage:	BOB 3,300 per month.
Average gross annual salary:	Varies widely, but approximately BOB 58,800.
Income tax:	13% (RC-IVA, after deductions and credits applied).

What it costs to hire an employee in Bolivia

It’s not particularly expensive to hire in Bolivia, and the employer costs in general are similar to other Latin American countries. Having a clear idea of what you can expect to pay is essential before you hire in the country, and the following costs are the most important to be aware of.

Salaries

Wages are generally paid in Bolivian bolivianos (BOB). The statutory national minimum wage is currently BOB 3,300 per month, but the government reviews it periodically.

Salaries vary substantially in Bolivia depending on industries, role, and experience. Oil and gas is the highest-paying sector.

Employer contributions

There are several employer contributions to be aware of, including:

• Healthcare (Caja Nacional de Salud): 10%
• Solidarity Pension Contribution (Aporte Patronal Solidario): 3.5%
• Pro-Vivienda Housing Fund: 2%
• Professional Risk Insurance: 1.71%

This makes up a total of 17.21% for the employer. The total contribution for mining employers rises to 19.51% due to an additional solidarity contribution of 2.3%.

Employees also make several contributions. These include:

• Retirement Pension Contribution: 10%
• Common Risk Insurance: 1.71%
• Solidarity Contribution: 0.5%
• Pension Administration Commission: 0.5%

Aguinaldo

Aguinaldo is the 13th-month bonus, one of Bolivia's main statutory benefits. This is equal to one month’s salary, and it’s payable once a year by December 20th. Where an employee works only partial years, the Aguinaldo is paid pro rata.

There is also a second Aguinaldo, but it is paid only when annual GDP growth exceeds 4.5%.

Seniority bonus

The seniority bonus (Bono de Antigüedad) is paid monthly to employees after two years of service. The following percentages are applied to the national minimum wage. For productive enterprises, the base is three minimum wages, but it could be one minimum wage for other employers.

• 2–4 years, 5%
• 5–7 years, 11%
• 8–10 years, 18%
• 11–14 years, 26%
• 15–19 years, 34%
• 20–24 years, 42%
• 25 years or more, 50%

This adds a potentially considerable amount to the overall employer costs.

Severance

Severance pay (indemnización) is equal to one month’s pay per year of service. It’s based on the average of the previous three months, and it must be paid even if the employee resigns, provided they have at least 90 days of service.

The payment for unjustified dismissal (desahucio) is equal to three months’ pay, and this is on top of standard indemnización.

Leave

The amount of paid annual leave an employee receives depends on the amount of time they have spent in the role:

• 1–5 years: 15 working days
• 5–10 years: 20 working days
• Over 10 years: 30 working days

Employees receive paid sick leave in Bolivia. The employer pays the first three days, and the Caja pays after this, providing up to 26 weeks that can be extended in certain circumstances.

Employees receive maternity leave up to 90 days, typically consisting of 45 days before birth and 45 after. The employee is entitled to 100% of their salary during this period, 90% of which is paid by the Caja, so the employer should plan for any difference. Paternity leave is three working days, which is paid 100% by the employer.

Overtime and holiday pay

Overtime is paid at a premium of 100%. Standard night work is paid at a premium of 25–50%, depending on the nature of the work. Employees generally receive double pay (or compensatory rest) if they work on public holidays, while Sundays are generally compensated at triple pay.

Other bonuses

The annual bonus (Prima) is not paid every year, and it is conditional on the company’s profit. When due, it’s equal to one month’s pay, but the total due can’t exceed 25% of the company’s net profits. As such, if the amount doesn't cover the full bonuses, it’s shared pro rata. This means employees could receive less than one month’s pay.

Employer cost calculator

Use our employer cost calculator to get a clear picture of the total employment costs in Bolivia.

What hiring in Bolivia looks like

Market condition	What an employer needs to know
Talent availability	White-collar talent is generally available in the main hiring hubs of La Paz, Santa Cruz de la Sierra, and Cochabamba.
Top-paying sectors	Oil and gas.
Skills shortages	Highly specialized roles can be harder to fill.
Key employer challenge	Employee-protective labor framework means employers must be very careful about issues such as terminations and severance obligations.

Onboarding in Bolivia is fairly straightforward, and it is a simple process once the contract has been approved. However, one added element to prepare for is the mandatory medical exam, which must be arranged before employment begins.

International hires are possible but less straightforward. Bolivian law restricts foreign workers to no more than 15% of the workforce, and they can generally only fill technical roles.

Remote and hybrid work is popular in Bolivia. Traffic is a frustration for many people in the cities, and remote work has become a genuine preference since COVID. Telework is also formally recognized under Bolivian regulations.

Bolivian law is highly protective of the employee, and employment stability is a strong principle. Justified dismissal is possible, but the burden on the employer is high, and you must be able to demonstrate legally recognized grounds, like serious misconduct.

Don’t assume you can simply dismiss an employee if their work becomes unsatisfactory or their performance falls below expectations. If you don’t provide sufficient legal justification, this could lead to termination costs or reinstatement claims.

Country-specific problem that employers must know about

Currency volatility has become a problem in Bolivia recently, so foreign employers need to budget for volatility and potentially the changing salary expectations this can lead to.

As a foreign employer, you may budget in dollars but pay your employees in local currency, and changes in the exchange rate can have a big impact on your costs.

The exchange rate had been very stable for about 15 years, so the sudden change in 2026, where the Bolivian boliviano weakened from 6.96 BOB per 1 USD to nearly 12 BOB was a considerable change.

This was a big change from what employers had become used to. It’s something that no one can control, but it’s worth being aware of the changing situation in the economy.

A devaluing currency can impact the cost of living for employees, which can affect salary expectations. For example, a salary that’s competitive when you hire someone may become uncompetitive in a short period of time. As such, it’s important to pay close attention to this and be prepared for changes when hiring in Bolivia.

The main compliance risks employers need to know

Termination

The employment environment in Bolivia is very employee-friendly. Essentially, you will need a strong legal justification to terminate an employment contract, or you will have to pay the financial consequences. There are specific reasons why an employee can be dismissed, but even for serious misconduct, you must clearly demonstrate your case.

Medical examinations

Many foreign employers are surprised by the need for mandatory medical examinations before an employee can begin a role. You must allow time not only for scheduling the examination but also for it to be carried out and the results to be received. This is then followed by another medical examination when an employee leaves. This is a very important step that can create legal compliance issues if not carried out.

Independent contractors

You can hire independent contractors in Bolivia, but they are not entitled to the same employment protections as employees. Whether someone is a contractor or an employee will depend on the actual work relationship, the level of control the business has, the level of economic dependence the individual has, whether they have other clients, and other factors. If they are acting as an employee, you could face liabilities, including social security contributions and fines.

Hiring foreign nationals without confirming eligibility

While you can hire foreign nationals in Bolivia, the number of employees can’t exceed 15% of your total workforce. In addition, they can only be employed in technical roles. Most foreign nationals need to be sponsored by the employer and undergo immigration checks, get a work-related visa, and get temporary residence before they can work legally.

How Rivermate can help you stay compliant when hiring in Bolivia

Our local experts know exactly how local employment laws work in Bolivia, and they will take care of every aspect of the employment relationship for you. By letting us handle hiring, you can focus on running your business and finding the best talent.

Learn more about EOR services

Benefits of hiring employees through an EOR in Bolivia

Using an EOR when hiring in Bolivia gives you a straightforward way to quickly hire a small local team without having to set up a whole local operation. Establishing a company in the country is just the start, and you would also need access to expertise in managing payroll, accounting, and HR.

This is often not worth it if you only want to hire a few employees. With an EOR, you can take advantage of having the local employment infrastructure already in place, even if you only need to hire one person.

This could be a useful way to test Bolivia before committing to a larger operation. You might prefer to hire a small remote team in the country for a few years until you have a clearer picture of whether you want to scale up.

Using an EOR also reduces the risk of onboarding and offboarding in Bolivia. The country has rules that may not be common where you typically operate, such as the mandatory medical checks for employees, and this is the kind of thing that you could easily miss but that our local partners are fully aware of.

Difficult employee exits can be particularly problematic in Bolivia, given the country's employee-protective approach. Termination can be very complex, and having a local expert on your side to handle it can be a huge advantage.

An experienced EOR will also simplify the process by handling payroll, statutory obligations, tax withholding, social security contributions, and more, so you don't have to worry about potentially costly mistakes.

Ready to hire in Bolivia?

When you’re hiring in Bolivia, the process doesn't stop at finding the best candidate. At Rivermate, we make the process straightforward for international companies, managing everything from payroll to taxes, so you can hire with full confidence.

Talk to a Bolivia Hiring Expert

Sources:

https://www.oas.org/dil/migrants/bolivia/ley%20general%20del%20trabajo%20del%208%20de%20diciembre%20de%201942.pdf

https://bolivia.infoleyes.com/articulo/7493

https://www.gob.bo/tramites/examen-preocupacional

https://www.remofirst.com/visa-guide/bolivia

https://www.fragomen.com/countries/bolivia.html

https://www.migracion.gob.bo/

https://bolivia.infoleyes.com/articulo/8710

https://juristeca.com/bo/tsj/auto-supremo/2021/12/auto-supremo-as-0712-2021/1-

https://www.aps.gob.bo/images/webdocs/DS/normativa/Decreto%20Supremo%20N5280.pdf