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Get expert helpBolivia’s on your radar, and for good reason. You’re seeing the potential in its growing talent market, the cost-effective labor pool, and its strategic location in Latin America. But hiring there? It’s not as easy as finding someone qualified and signing a contract.
Getting it right means understanding a local system with its own rules for payroll, taxes, benefits, and labor laws. This guide walks you through every step, whether you’re setting up a local entity or exploring remote hiring options through an Employer of Record (EOR).
How to legally hire employees in Bolivia
Before you send out an offer letter, you’ve got to get the foundation in place. Compliance starts with choosing how you’ll hire and making sure you meet the country’s legal requirements.
1. Set up a legal entity or take a faster route
If you’re planning to hire directly, you’ll need to set up a local company, usually a Sociedad de Responsabilidad Limitada (SRL). That involves:
- Registering your business with Fundempresa
- Getting a NIT (tax ID) from Bolivia’s tax authority
- Signing up with Bolivia’s national health insurance program (Caja Nacional de Salud)
Not ready to open a Bolivian entity? A faster way in is to partner with an Employer of Record (EOR)—a third party that hires and pays employees on your behalf, taking care of the legal details while you focus on building your team.
2. Pick your hiring model
Here are your main options:
- Direct hire: You take full responsibility for payroll, benefits, and compliance. Great for long-term investment, but requires a legal presence.
- EOR: You outsource the employment relationship. They handle everything, and you stay focused on operations. Learn more in our Employer of Record (EOR) service overview.
- Contractor: Works for short-term or project-based roles. But be careful—misclassifying employees as contractors can lead to legal trouble.
3. Create compliant contracts
In Bolivia, written employment contracts are required. They need to include:
- Start date and work location
- Pay and payment schedule
- Work hours (standard is 8 hours/day, 6 days/week)
- Details on leave and benefits
You can include a probation period (up to 3 months), but after that, terminating employment requires clear justification and likely severance.
4. Register employees for health and pension benefits
Once someone starts, you’ve got five business days to register them with:
- Caja Nacional de Salud (health system)
- An AFP (pension administrator)
It’s mandatory, and skipping it puts you at risk for fines.
How to run payroll in Bolivia
Running payroll in Bolivia requires calculating deductions, staying on top of monthly filings, and managing contributions across multiple systems.
Here’s what goes into salary calculations
The 2025 minimum wage is BOB2,500/month (about US$360), but professionals typically earn more. Payroll must account for:
- Overtime (after 48 hours/week)
- Aguinaldo (13th-month bonus paid each December)
- A seniority bonus (starts after two years)
Required deductions include:
- 10% for employee pension contribution
- 3% for solidarity pension
- 1.71% for health system
Don’t forget your share: employers contribute about 16.71% of gross pay.
How employees get paid
Salaries are paid monthly in Bolivianos (BOB), usually by bank transfer. Every payment needs a pay stub outlining gross pay, deductions, and net take-home. If you’re working with distributed teams,a global payroll system is a great choice to manage compliance, avoid errors, and reduce complexity when hiring in multiple countries.
Social security, simplified
Once your employee is onboarded, you’ll need to register them with both the health and pension systems. These contributions cover everything from maternity leave to retirement savings. Failing to register can mean penalties.
Required benefits in Bolivia
Bolivia mandates a generous package of employee protections and perks. It’s all part of the cost of hiring locally, and budgeting correctly means factoring these in from the start.
Required by law
- Eleven public holidays each year
- Aguinaldo (one extra month of pay every December)
- Seniority bonus after two years
- Paid sick leave after five days (covered by health system)
- Ninety days of maternity leave, paid by social security
Common (but not required) benefits
- Meal vouchers
- Transport allowances
- Private insurance (for extra coverage)
Plan for about 30–45% in added cost on top of base salaries to cover it all.
Hiring foreign employees and managing international teams
Bolivia allows foreign hires, but there’s a lot to get through first. Here’s how it works.
Work permits and visas
You’ll need to:
- Apply through the Ministry of Labor
- Show the position can’t be filled locally
- Register the worker with immigration and tax agencies
Permits are usually valid for one year and renewable.
Remote work from outside Bolivia
Any income earned for work performed in Bolivia is taxable. If you’re hiring remote workers based elsewhere, be sure to follow local rules. An EOR can help you avoid misclassification and ensure compliance.
Tips and resources for a smooth hiring process
Bolivian payroll and HR laws can get detailed fast. Stay ahead by:
- Using checklists to track entity setup, registration, and contracts
- Connecting with local payroll specialists early
- Having contract templates reviewed by legal pros
It’s the kind of planning that saves you stress (and surprise costs) later.
How an Employer of Record (EOR) makes hiring easier
An EOR is your shortcut to compliant global hiring. It’s a third-party service that:
- Employs talent on your behalf
- Handles payroll, benefits, taxes, and compliance
- Registers your workers in health and pension systems
- Keeps you on the right side of local labor law
That means you don’t need to launch a Bolivian entity or build a legal team from scratch.
FAQs
What do professionals earn in Bolivia?
Most professionals earn BOB4,000–7,000 per month, depending on role and experience.
How are workers paid in Bolivia?
Employees are paid monthly, in Bolivianos, and via bank transfer.
What’s the total cost to hire in Bolivia?
Plan to budget 30–45% above the base salary to cover required employer contributions and statutory costs.
Here’s the takeaway.
Bolivia has real potential, but only if you know how to navigate its employment landscape. That means choosing the right hiring model, understanding payroll laws, and planning for all the extras that come with compliant hiring.
The most successful companies are the ones who prep properly. They work with experts, use reliable tools, and choose partners who make global hiring feel local. To dive deeper, check out these country-by-country hiring guides.
How Pebl makes hiring in Bolivia simple
Expanding your talent search to Bolivia just makes sense, but hiring across borders requires a lot of paperwork. Pebl can help.
Our employer of record service takes care of visas, hiring, compliance and global payroll in 185+ countries worldwide. If you want to hire in Bolivia through an EOR, Pebl makes it happen, all without setting up a local entity.
When you’re ready to learn more, let’s talk.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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