Bolivia is a country in South America, bordered by Brazil, Paraguay, Argentina, Chile, and Peru. It is a lower-middle-income country, with an economy reliant on natural resources, and a GDP of 49.67 billion US dollars (2024).

With a young workforce of approximately 6.8 million people (2024), Bolivia is known for lower labor costs than neighbouring countries, making it an attractive destination for companies hiring abroad. It has a strategic location in South America, offering easy access to regional markets, plus its richness in natural resources makes it useful for companies in sectors such as agriculture and textiles.

This guide will provide information to companies considering hiring in Bolivia, primarily around local labor laws and the mandatory employee benefits workers are entitled to in this country. We’ll also explain how RemotePeople can help with Employer of Record to ensure compliance when doing business in Bolivia.

Bolivia Labor Law

The main labor law in Bolivia, informing on the rights and obligations of employers and employees, is the Ley General del Trabajo (translated as General Labour Law).

Other key acts that inform on labor law in Bolivia include:

  • The Bolivian Constitution
  • Social Security Laws
  • Occupational Health, Safety, and Welfare Laws
  • Pension Laws

Employers need to consult with legal professionals when hiring in Bolivia, particularly when drafting employment contracts. It’s advised that companies seek advice from professionals that experienced in Bolivian labor law before signing any contracts, to mitigate any legal risks from occurring in the future.

Mandatory Employee Benefits in Bolivia

There is a range of mandatory employee benefits that workers are legally entitled to when working in Bolivia. We have detailed the primary employee benefits in the sections below.

Social Security Contributions

Bolivia operates under a Social Security System designed to protect workers and residents in the event of sickness, retirement, maternity, work injury, and unemployment.

The rates of social security in Bolivia are as follows:

Contribution Type Rate
Employees and Self-Employed Workers 12.71% of gross income
Employers 14.71% of gross payroll

Annual Paid Leave

Employees in Bolivia are entitled to a minimum of 15 calendar days of annual leave once they have worked for their employer for 1 year.

Annual leave can increase with seniority, increasing to 20 calendar days for between 5 – 10 years of experience and a maximum of 30 calendar days for over 10 years of experience.

Leave must be paid at the full rate of an employee’s normal salary, and leave cannot be carried over to the following year unless there is a mutual agreement between the employer and employee.

Leave can also not be exchanged for cash, except in the event of contract termination.

Working Hours

Working hours in Bolivia are typically 48 hours per week, spread across a maximum of 6 days. Workers are entitled to one day of rest per week, which is usually taken on a Sunday. 

Women and minors under the age of 18 are usually limited to 40 hours per week. Night hours tend to be hours worked between 8 pm and 6 am, which are usually permitted a pay increase.

Overtime Pay

Hours worked beyond an employee’s set contracted hours must be paid at an increased overtime rate of 1.5 times an employee’s normal wage. Overtime hours carried out on Sundays or public holidays are usually paid at twice an employee’s normal rate.

Public Holiday Leave

Several public holidays in Bolivia provide employees with a paid day off, which is considered to be separate from annual leave entitlement.

The public holidays in Bolivia in 2025 are as follows:

  • January 1: New Year’s Day
  • January 22: Plurinational State Foundation Day
  • March 3: Carnival / Shrove Monday
  • March 4: Carnival / Shrove Tuesday / Pancake Day
  • April 18: Good Friday
  • May 1: Labor Day / May Day
  • June 19: Corpus Christi
  • June 21: Aymara New Year’s Day
  • August 6: Independence Day
  • August 7: Bicentennial Day
  • November 2: All Saints Day
  • December 25: Christmas Day

Sick Leave

Employees in Bolivia are entitled to up to 26 weeks of paid sick leave per year if they are too unwell to attend work. A medical certificate from a doctor or other medical professional must be provided to obtain sick leave, and employees must be registered with the Social Security System to be eligible.

Sick pay is usually paid in full by the employer for the first 3 days of sickness, with the Social Security System paying the remaining period of sickness at a rate of 75% of an employee’s normal pay.

This may be extended to a maximum of 52 weeks in the event of long-term sickness.

Maternity Leave

Female workers in Bolivia are entitled to 90 days of paid maternity leave, with 45 days taken before birth and 45 days taken postpartum.

This is generally paid at the full rate of the employee’s salary, with 90% of this amount being funded by the Social Security System.

Employees and their partners are protected from dismissal while pregnant and for one year after the birth of their child. This rule also applies to adoptive parents.

Paternity Leave

Male employees are entitled to three days of paid paternity leave. This is paid in full by the employer and must be taken immediately after the birth of the child.

Severance Pay

Employees in Bolivia who have been dismissed from their jobs without fault are usually entitled to severance pay. This is usually payable as 1 monthly salary per year of service. Severance pay is not due for employees who have been dismissed for reasons including employee misconduct, theft, fraud, or negligence.

Pensions

Bolivia has both contributory and non-contributory pension schemes, with a mandatory individual pension account for formal sector workers and a Solidarity Pension Fund for private sector workers. There is also a universal old-age pension scheme for residents and workers in Bolivia who have reached retirement age.

Supplementary Employee Benefits in Bolivia

It’s recommended that companies consider offering their workers supplementary employee benefits to improve staff retention rates and increase job applications for new roles.

Some examples of popular supplementary benefits in Bolivia include:

  • Performance bonuses
  • Expenses for housing, food, and transport
  • Company car
  • Additional annual leave
  • Private pension opportunities
  • Advanced training courses

Optimize Employee Benefits with RemotePeople

RemotePeople can help companies hiring in Bolivia through an Employer of Record services.

A trusted EOR provider takes on the role of the legal employer in Bolivia, managing payroll, HR administration, and tax compliance on your behalf. They also ensure that employees receive all mandatory benefits under local labor laws. By working with an EOR, businesses can reduce administrative burdens, stay compliant, and focus on growth while their workforce in Bolivia is fully supported.

If you need help with direct hiring in Bolivia, whether it be full-time employees, executive searches, or contractors, we can help here with our recruitment services. Our team is experienced in the recruitment space in this country, knowing the best areas to advertise job roles to secure the best local talent for your business.

Other services we can also offer to help your business include PEO, payroll outsourcing, and assistance with work visas.

Contact RemotePeople to see how we can help your business expand compliantly into Bolivia.