What Are EOR Services?

An Employer of Record (EOR) is a third-party organization that acts as the legal employer for your workforce in Bolivia. While you retain control over day-to-day employee management and operations, the EOR handles:

• Employment contracts
• Payroll processing
• Tax and statutory compliance
• Employee benefits
• Termination procedures

This allows you to focus on business growth while ensuring full compliance with Bolivian labor laws.

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Benefits of EOR Services in Bolivia

1. Hire Without a Legal Entity
   • EOR services enable businesses to hire employees in Bolivia without setting up a subsidiary, saving time and reducing costs.
2. Local Compliance
   • The EOR ensures all contracts, payroll, and tax filings comply with Bolivian labor laws and regulations.
3. Streamlined Payroll Management
   • Salaries, overtime, bonuses, and social security contributions are managed efficiently.
4. Risk Mitigation
   • Avoid legal and financial risks by ensuring compliance with ever-changing labor laws.
5. Flexibility in Workforce Management
   • Easily scale your workforce up or down based on business needs.
6. Faster Market Entry
   • Begin operations in Bolivia within weeks, bypassing the lengthy process of establishing a local entity.

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Key Features of EOR Services in Bolivia

1. Employment Contracts

• Drafted in compliance with Bolivian labor laws, ensuring legal validity.
• Includes all mandatory clauses such as salary, benefits, working hours, and termination terms.

2. Payroll and Tax Management

• Timely and accurate salary payments.
• Deduction and remittance of income tax, social security, and other statutory contributions.

3. Employee Benefits

• Management of mandatory benefits like health insurance, pensions, and bonuses.
• Ensures employees receive entitlements such as annual leave, sick leave, and maternity benefits.

4. Termination Support

• Handles legal procedures for employee termination, including severance calculations and notice periods.

5. HR Compliance

• Monitors and implements changes in local labor laws and regulations.

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Why Choose EOR Services in Bolivia?

• Experienced Team: Local experts with in-depth knowledge of Bolivian labor laws.
• Cost-Effective Solutions: Reduce overhead costs associated with entity setup and management.
• Global Reach: Extend your business footprint across South America seamlessly.
• Customized Services: Tailored solutions to meet your specific business needs.

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Start Your Expansion in Bolivia Today

Partnering with an EOR provider in Bolivia allows you to focus on your core business while ensuring your workforce operates legally and efficiently. Whether you’re looking to test the Bolivian market, hire top talent, or expand your global operations, we’re here to simplify the process.

Contact us today to learn how our Employer of Record services in Bolivia can help you achieve your business goals.

How EOR Services Work in Bolivia

Onboarding: The EOR recruits or transitions employees on behalf of your company, ensuring legal compliance from the start.
Payroll and Benefits: The EOR processes payroll, manages benefits, and ensures statutory deductions are paid on time.
Employee Management: You retain control over day-to-day tasks and employee performance, while the EOR handles the administrative and legal aspects.
Compliance Support: The EOR keeps you updated on changes in employment laws and ensures compliance.
Offboarding: If an employee is terminated, the EOR manages severance and other legal requirements.

Advantages of Using Global EOR Services in Bolivia

Deep understanding of Bolivia labor laws.
Proven expertise in managing international employment challenges.
Transparent pricing with no hidden costs.
End-to-end support for onboarding, payroll, compliance, and offboarding.

Employment Law and Considerations for EOR Services in Bolivia

Employment Laws in Bolivia

Bolivia’s employment laws aim to protect workers’ rights while establishing guidelines for employers. Bolivia’s employment laws are governed by the General Labor Law (Ley General del Trabajo) and its regulations. The key legal framework is based on the Bolivian Labor Code and supplemented by additional decrees and regulations. Below is an overview of the most important aspects of employment laws in Bolivia:

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Employment Contracts

• Types of Contracts:
  • Indefinite Term Contracts: The default and most common form of employment contract.
  • Fixed-Term Contracts: Permitted under specific conditions, with a maximum initial duration of one year, renewable up to three times.
  • Project-Based Contracts: Applicable for roles tied to a specific project with a defined end date.
• Mandatory Content: Contracts must include details such as salary, benefits, job description, working hours, and termination conditions.

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Minimum Wage

• The government sets a national minimum wage annually, which all employers must adhere to.
• Employers must ensure compliance with the minimum wage laws and any applicable collective bargaining agreements.

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Working Hours

• Standard Workweek: 48 hours for men and 40 hours for women.
• Overtime: Limited to two hours per day and must be paid at 200% of the regular wage.
• Night Work: Work between 8 PM and 6 AM qualifies as night work and may require additional compensation.

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Employee Leave

• Annual Leave:
  • Employees are entitled to 15 days of paid leave after one year of service.
  • This increases to 20 days after five years and 30 days after 10 years of continuous service.
• Public Holidays: Bolivia observes 12 public holidays annually.
• Sick Leave: Paid sick leave is available, with benefits managed through social security.
• Maternity Leave:
  • 90 days of paid leave (45 days before and 45 days after childbirth).
  • Pregnant employees are protected against termination during pregnancy and up to one year post-delivery.
• Paternity Leave: Fathers are entitled to paid leave of three days after the birth of a child.

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Termination of Employment

• Notice Period:
  • For indefinite-term contracts, the standard notice period is 30 days.
• Severance Pay:
  • Employees dismissed without just cause are entitled to one month’s salary for every year of service.
• Just Cause Termination:
  • Valid reasons for termination include serious misconduct, failure to meet job responsibilities, or criminal activity.

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Social Security and Contributions

• Employers are required to register employees with the Bolivian social security system.
• Employer Contributions: Include pension funds, health insurance, and workplace risk insurance, typically totaling 16.71% of the employee’s salary.
• Employee Contributions: Employees contribute 12.71% of their salary to social security.

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Non-Discrimination and Equal Opportunity

• Discrimination based on gender, age, race, religion, political beliefs, or social status is prohibited.
• Equal pay for equal work is a statutory requirement.

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Collective Bargaining and Unions

• Employees have the right to join or form trade unions.
• Collective bargaining agreements often supplement statutory labor protections, providing enhanced rights and benefits.

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Health and Safety Regulations

• Employers must provide a safe and healthy work environment.
• Regular training on occupational health and safety is required, especially for high-risk roles.
• Employers must conduct periodic health check-ups for employees exposed to occupational hazards.

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Foreign Workers

• Employers hiring foreign workers must comply with visa and work permit requirements.
• The employment of foreign nationals is capped at 15% of the total workforce in a company.

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EOR Support for Employment Law Compliance

Navigating Bolivia’s labor laws can be complex. Partnering with an Employer of Record (EOR) ensures compliance with local employment regulations, minimizing risks and administrative burdens.

Contact us to learn more about how our EOR services in Bolivia can support your business and ensure seamless operations.

Payroll and Taxation

Personal Income Tax: A flat rate of 13% applies to most employees.
Social Security Contributions:
Employer: Approximately 34% of gross salary.
Employee: 1% of gross salary.
Employers are responsible for withholding and remitting taxes and social contributions.

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Payroll in Bolivia

Payroll Cycle

• Salaries are typically paid monthly, with payment due by the last working day of the month.

Minimum Wage

• The minimum wage in Bolivia is determined annually and is currently set at Bs. 2,362 (subject to government updates).

Overtime Rules

• Overtime is limited to two hours per day and compensated at 200% of the regular hourly rate.

13th and 14th Month Salaries

• A 13th-month bonus is mandatory and must be paid by December 20th each year.
• A 14th-month bonus may also apply under certain conditions tied to economic performance.

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Employee Benefits in Bolivia

Leave Entitlements

• Annual Leave: 15 days of paid vacation after one year of service, increasing with seniority.
• Sick Leave: Paid leave is provided for certified illnesses, with the employer covering the first five days and social security covering subsequent days.
• Maternity Leave: 45 days before and 45 days after childbirth, fully paid.
• Paternity Leave: 3 days of paid leave for new fathers.

Social Security Contributions

• Employers and employees must contribute to Bolivia’s social security system, covering health, pensions, and workplace accidents.

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Taxation in Bolivia

Corporate Tax

• The standard corporate income tax rate is 25%.
• Companies in the oil and gas sectors are subject to higher rates.

Personal Income Tax (PIT)

• Income tax is a flat 13% on earnings.
• Employers are responsible for withholding and remitting employee income taxes.

Value-Added Tax (VAT)

• The standard VAT rate in Bolivia is 13%, applicable to most goods and services.

Social Security Contributions

• Employer Contributions: Approximately 16.71% of gross salary, covering pensions, health insurance, and risks.
• Employee Contributions: Around 12.71% of gross salary.

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How EOR Services Simplify Expansion in Bolivia

EOR services help businesses comply with Bolivia’s complex labor laws and taxation system by:

• Hiring Employees: Recruiting and onboarding employees on behalf of the client.
• Managing Payroll: Handling salaries, bonuses, overtime, and statutory contributions.
• Ensuring Compliance: Staying updated with changes in labor and tax laws.
• Mitigating Risks: Reducing legal exposure by ensuring full compliance with local regulations.

Get Started with EOR Services in Belarus

If you’re ready to hire employees in Belarus and expand your operations, our EOR services can help you navigate the complexities of employment laws and compliance.
By partnering with an Employer of Record (EOR), businesses can ensure full compliance with these employment laws while focusing on their core operations.
Contact us today to learn more about how we can support your growth in Belarus !