Paraguay’s cost-efficient labor and skilled workforce make it an excellent outsourcing destination. Employers looking to hire in the area may wonder, What is the average salary in Paraguay? This information will help them prepare a fair hiring offer. 

The average salary in Paraguay is 5,000,000 Paraguayan Guarani (PYG), about USD 626. However, you must consider how wages vary by education, experience, position, industry, and location. Comparing wages in the country to earnings worldwide provides additional insight. 

This article will explore all aspects of salaries in Paraguay, preparing you for your hiring journey.

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What is the Average Salary in Paraguay?

The average salary in Paraguay is 5,000,000 PYG, or about $626. Wages are low due to a large informal sector and income inequality, and many people in the country live in poverty. 

Paraguay Median Income

Paraguay’s median monthly income is 4,750,000 PYG, about $595. Half the population earns higher salaries, and the other half earns less. 

Salary Range

The salary range spans from the lowest to the highest in the country. In Paraguay, low earners make around 2,700,000 PYG, about $388, while high earners make closer to 36,700,000 PYG, about $4601. 

Salary Comparisons in Paraguay

Average salary provides some insight, but you must also consider how wages vary by industry, position, experience, education, and location. The following sections will explore how these factors impact wages. 

Salary by Position

This salary comparison chart reveals how wages vary by position.

ProfessionAverage Monthly Salary (PYG)
General Manager14,000,000
Business Development Manager13,000,000
Financial Analyst10,700,000
Business Analyst9,850,000 
Teacher5,500,000 
IT Manager6,547,597 
Project Manager7,975,149 
Personal Assistant5,981,362 
Pharmacist8,637,086
Dentist9,968,936

Average Wage in Paraguay Based on Education

Education plays a significant role in earnings. Here are some statistics to consider:

  • Human capital characteristics account for about 40% of individual earnings
  • Each extra year of schooling produces an additional return of 11.5%
  • Social and private rates are highest for primary education, followed by secondary education
  • Females see higher returns on education than males
  • Workers in the private sector, who tend to require skilled, educated labor, earn about 3.6% more than public sector employees. 

Salary Comparison by Experience

Although education plays a significant factor in wage determination, experience may have an even more substantial role. Workers entering the workforce out of college will earn more than less educated workers, but not as much as their more experienced counterparts. Paraguay’s economy has grown considerably over the past few years, with skilled workers seeing the most significant benefits. 

Salary Comparison by Location

Location is another factor to consider in wage determination. Workers in urban areas, like the capital city of Asuncion, tend to earn more than workers in rural areas due to higher living costs and proximity to large companies offering higher-paying job opportunities. 

Fortunately, most of the population lives within a 100-mile radius of Asuncion, meaning they can access the benefits of a more developed infrastructure. However, those in rural areas have fewer job opportunities and restricted access to healthcare.

How Much is Minimum Wage in Paraguay?

A new minimum wage will go into effect in Paraguay on July 1, 2025, reaching 2,899,048 PYG, about $363. This is an increase from the previous 2,798,309 PYG, which had been in effect since July 1, 2024. 

Average Salary in Paraguay vs. the Rest of the World

The following charts compare salaries in Paraguay to those in developed, developing, and least developed countries, providing additional insight. 

Paraguay vs. Developed Countries

CountryAverage SalaryComparison to Average Paraguay Salary
Japan379,434 Yen (approx. $2635)– 333%
United Kingdom3000 euros (approx. $3116)– 416%
Norway50,790 kroner (approx. $4700)– 683%
Germany4300 euros (approx. $4467)– 650%
Austria3500 euros (approx. $3636)– 500%

Paraguay vs. Developing Countries

CountryAverage SalaryComparison to Average Paraguay Salary
Romania4000 RON (approx. $835)– 40%
Russia73,709 Rubles (approx. $700)– 16%
Albania1500 Euros (approx. $1550)– 158%
Kazakhstan342,082 Tenge (approx. $645)– 8%
Ukraine18,000 hryvnia (approx. $500)20%

Paraguay vs. Undeveloped Countries

CountryAverage SalaryComparison to Average Paraguay Salary
Afghanistan30,000 Afghanis (approx. $419)42%
Philippines18,423 PHP (approx. $875)– 46%
Cambodia1,000,027 KHR (approx. $250)140%
Egypt13,244 EGP (approx. $263)130%
Pakistan45,000 PKR (approx. $150)300%

Paraguay is a developing country with an upper-middle income economy. It has experienced significant growth in the past few years, as it transitions from an informal to a formal workforce and diversifies from an agricultural sector. However, it is still hindered by poverty and social inequality. 

The country also has the potential to develop through outsourcing. It offers cost-effective labor and a skilled workforce. The government actively supports foreign investment through corporate tax breaks and initiatives.

What are the Most Common Outsourced Industries in Paraguay?

Employers outsourcing to Paraguay will benefit most by focusing on the following industries. 

IT Services

Paraguay’s IT industry is experiencing significant growth with a focus on digital transformation and the increased adoption of 4.0 technologies. The sector is seeing expansions in digital payments and mobile banking. The government activity supports the industry through initiatives to attract investments in data centers. 

An IT manager in Paraguay earns about 6,547,597 PYG, about $820, while their American counterparts earn about ten times that amount. This leads to significant cost savings for companies that outsource.

BPO

The EE Times has called Paraguay an offshore destination on the rise due to its burgeoning BPO industry with significant call center growth. It stands out in the sector due to its stable economy, strategic location in the middle of South America, unique language characteristics, and attractive tax and labor regulations. The country is also known for its young and increasingly skilled workforce. 

Call center workers in Paraguay earn about 3,000,000 PYG, about $376, again about ten times less than American workers, giving employers plenty of bargaining power.

Minerals and Fossil Fuels

Although Paraguay is not known for its mining industry, insiders state that it is sitting atop serious mining reserves, just waiting to be exploited. Reports state dozens of metallic elements are scattered around the country alongside a dense cluster of uranium in various regions. Other sources named Paraguay “the world’s next great lithium producing region.”`

If these developments become public, Paraguay could be an ideal destination for mineral and fossil fuel exports and related services.

Conclusion

Paraguay’s low average salary, strategic location, and skilled workforce make it an ideal outsourcing destination. Employers who form remote partnerships in the country can benefit from reduced expenses and exceptional products and services while helping Paraguay reach its developmental goals, producing favorable outcomes for all involved parties.