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Employer of Record (EOR) in Bolivia

Employer of Record in Bolivia

Skuad’s Employer of Record Bolivia (EOR) solutions make business expansion to Bolivia easy and hassle-free. Our unique HR platform allows companies to hire exceptionally talented employees in Bolivia, without having to set up a separate legal entity. It streamlines the process of hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances. To learn more about Skuad, Book a demo today.

Bolivia at a Glance

Population: 1,1,75,000 (2021)

Currency: Boliviano (BOB)

Capital: Sucre (Constitutional Capital) and La Paz (Government and Executive Capital)

Languages spoken: Spanish and many indigenous languages such as Aymara, Quechua, etc.

Gross Domestic Product (GDP) per capita: USD 3,552.07 (2019)

Learn more about expanding your business into Bolivia by partnering with Skuad.

Employment in Bolivia

What you should know before Employing in Bolivia?

Among Bolivia's employment laws and regulations, General Labour Law is the most important law. The laws are complex but a competent EOR will make things simple for you. The table below lists some of the employee entitlements in detail.

Entitlements Explanations
Statutory working hours The statutory working hours are 48 hours per week.
Rest Period

Employees must not work for more than five hours straight. There must be a two-hour rest period without regard to the working hours for the day.

Night workers must be given a break after three and a half hours of work.

Minimum Wage The minimum wage is adjusted every year in Bolivia. The national minimum wage in 2021 was BOB2,164 per month.
Overtime Employers must seek approval from the labor inspection authority. Once approved, the overtime should not be more than two hours per day, and the employees are paid 200% of their normal wages.
Paid public holidays The public holidays of Bolivia for 2022 are as follows.
  1. New Years’ Day (January 1)
  2. Carnival Monday (February 15)
  3. Carnival Tuesday (February 16)
  4. La Paz Day (April 15)
  5. Independence Day (August 6)
  6. Cochabamba Day (September 14)
  7. All Souls Day (November 2)
  8. Christmas (December 25)
Holiday Here are the details of the annual paid holiday in Bolivia:
Duration of Employment Annual Leave
1 - 5 Years 15 Working Days
5 - 10 Years 20 Working Days
10< Years 30 Working Days
Employees that have not taken their annual leave cannot get compensated in monetary terms, except in cases of termination.
Employee Health Benefits Bolivia Both employees and employers make contributions to a medical insurance scheme.
Medical leave Employees must show a certificate that shows that they are ill or injured. They are entitled to five paid sick leaves every year.
Maternity leave Female employees get up to 45 days of maternity leave both before and after their child is born. Additionally, they must be given one hour every day for breastfeeding until the child is one year old. The additional hour must not be counted in the mandatory two hours break.

To ensure your expansion endeavors are in compliance with the Bolivian employment laws, Contact Skuad today.

Contractors vs. Full-time Employees

Employment contracts in Bolivia are governed by various statutes. The major difference between contractors and employees is the kind of service they provide. Employers can control the method of work of employees. With contractors, employers exercise little control over how the work is to be done.

Fixed Term vs. Temporary Workers

According to Bolivia employment contracts law, Fixed-term employment must be approved in writing by the Ministry of Labour. Usually, employment contracts are for an indefinite period in Bolivia. However, there is no law prohibiting employers from entering into a fixed-term contract or employing contractors for a particular work or service.

Fixed-term employees can work for a maximum of one year. After one year, their contract can be renewed. If it is renewed, they become indefinite employees.

Whether your organization requires contractors or full-time employees, Skuad’s employer of record service can cater to all your hiring requirements. Learn more by talking to Skuad experts.

Hiring in Bolivia

Bolivia’s economy has a lot to offer for companies. The major sectors are agriculture, mining, petroleum, smelting, textiles, and tobacco. There are many hiring avenues in Bolivia. Companies go to college campuses to recruit freshers. Job postings are updated on company websites. Social media platforms like LinkedIn are used to hire employees from Bolivia. Alternatively, there are hiring companies in Bolivia that perform this function as well.

There are numerous websites that connect employees and employers in Bolivia. Here are some of them:

  1. Job island
  2. Indeed
  3. Hiring Room
  4. Jobboard Finder
  5. Upwork

Despite the advantages of modern technology, the hiring process can be burdensome and costly. You can use Skuad’s Bolivia EOR solution to hire employees in Bolivia and manage them without setting up an entity. Skuad’s solution will help you focus on expanding your company, leaving HR-related tasks to our experts.

Probation & Termination

Probation Period in Bolivia

The standard probation period in Bolivia is three months. During the probationary period in Bolivia, the employer is free to terminate the contract of the employee if they are not satisfied with the quality of work. Probation is regulated by the General Labour Act.

Termination of Employment in Bolivia

Particulars Explanation
Notice for termination of employment Employers must serve a termination notice to employees in Bolivia. Here are the notice period details of blue-collar workers (Obreros)
Duration of Employment Notice Period
1 Month 7 Days
6 Months 15 Days
1 Year 1 Month
For white-collar workers (Empleados), a 90-day notice must be given to employees that have been with the employer for more than 3 months.

Employees that are terminated for just cause are not entitled to severance pay. Employees that are terminated without just cause are entitled to severance pay that is equivalent to one month of salary for each year that they have been with the employer.

To ensure your expansion endeavors adhere to the laws regarding probation and termination in Bolivia, talk to Skuad experts and book a demo today.

EOR Solution in Bolivia

Business expansion is a long-drawn process that calls for extensive planning, especially when expanding to a foreign country. It is complicated and can take up to several months to complete but by choosing the EOR route for hiring employees in Bolivia, you can fast-track the expansion process. Employer of Record Bolivia (EOR) solutions by Skuad can make expansion to Bolivia much simpler and a lot quicker for business. Our global outreach and a tech-enriched HR platform ensure compliance with local labor laws by managing employment responsibilities such as monthly payroll, work permits, employment contracts as well as taxation for your employees in Bolivia. To learn more, Contact Skuad today.

Payroll Outsourcing in Bolivia through an Employer of Record

Hiring employees from Bolivia is not an easy task. The employment laws are not simple and straightforward. Bolivia has a workforce of more than five million. The working individuals are talented and skilled. Don’t miss out on hiring from Bolivia. Team up with Skuad to get access to an integrated and high-tech HR platform with a proven track record. Use the tailor-made EOR solutions to expand into Bolivia. To avail yourself of our services, speak to Skuad experts today.

Types of Visas in Bolivia

Before we discuss the types of visas, we must discuss the three visa groups. Citizens of group 1 can visit Bolivia for up to 90 days. This group includes most of Europe, Australia, the US, the UK, etc. People from these countries can enter the country without a visa and can get a tourist card with an entry stamp.

Citizens of group two countries can get a visa on arrival or apply for one from the consulate. Countries such as India, China, Sri Lanka, etc. are on this list. Citizens of group 3 need to apply for a visa and the process takes about one to five weeks.

Visa Category Explanation
Bolivia Tourist Visa This visa is for tourists. It is valid for 30 days. Citizens from group 1 countries do not need to apply for a tourist visa. They can get the most cards after they enter the country easily.
Bolivia Student Visa This visa is for students who want to continue their studies in Bolivia. There are two different types of student visas. One is valid for 60 days and one is for 180 days. However, students who want to stay longer can get it extended for up to three years.
Bolivia Temporary Resident Visa Foreigners who wish to stay in Bolivia for a longer period can opt for this visa. It is valid for up to one year. After getting the visa, one should apply for a foreigner’s identity card.
Bolivia Special Purpose Visa For miscellaneous purposes such as business travel, marriage, filming, and other legal activities, people can opt for this type of visa. It is valid for up to 30 days. Foreigners cannot apply for a residency visa while on a tourist visa. It is necessary to apply for a special purpose visa to do so.
Bolivia Multiple Entry Visa/ Bolivia Business Visa These are valid for up to one year. For foreigners who want to invest or conduct business in Bolivia, this is the visa they have to obtain.

Talk to us and get more information and guidance related to types of visas and Bolivia work visa requirements. Skuad can handle all your visa requirements and ensure the expansion process is not delayed.

Work Permit

Bolivia Work Permit for Foreigners

Candidates need to file the relevant documents with the Bolivian Consulate in their home country. Here are some of the documents required:

  1. Application (filled and signed) 
  2. Valid passport 
  3. Employment agreement in Bolivia 
  4. Police records from their last country of residence
  5. Passport photographs

A Bolivia work permit without a job offer is not possible. Candidates must secure employment in the country before applying for a permit. The whole process could take from one to five months. Candidates cannot go to Bolivia until approval has been granted.

Particulars Explanation
Can Skuad sponsor work permits in Bolivia? Yes, Skuad can sponsor work permits in Bolivia.
Processing time The processing time for work permits is one to five months.
Work permit process

Step 1: Skuad’s local partner in Bolivia applies for the work permit.

Step 2: The Directorate of Immigration then approves the work permit.

Step 4: After the work permit is approved, employees can come to Bolivia.

Passport submission The employee needs to present their original and valid passport when they apply for a work permit.
Work permit validity The permit is valid for one year. It can be renewed after one year.
Work permit application process for different countries For most countries, the process is quite similar.
Change of sponsor within Bolivia The employee needs to submit a new application for a change of sponsor.
Where is the application processed? The application is processed in Bolivia.
When can an employee go to Bolivia? Candidates can go to Bolivia after their work permit is approved.
Cost of a business visa in Bolivia A business visa costs USD 85.
Duration of business visa processing A business visa takes 5-10 days for processing.
Can a business visa be switched to a work permit? No, a business visa cannot be switched to a work permit.
Can spouses work on dependent visas? No, spouses cannot work on dependent visas.
Special requirements for work permit cancellation The work permit must be canceled by the employer or appointed employment agent.

To know more about work permits in Bolivia and how Skuad can secure them for you, speak to our experts today and kick-start your expansion.

Payroll & Taxes in Bolivia

Things You Must Know to Set Up Payroll in Bolivia

To set up payroll and manage taxation in Bolivia, you need to be aware of the laws that vary across categories. First, you must decide whether you want to employ foreign nationals or locals. Then, you need to familiarize yourself with income, sales, and withholding taxes. You should ensure that your expansion efforts comply with them.

Particulars Explanation
Income tax The income tax rate in Bolivia is 13%.
Tax returns Yes, tax returns must be filed.
Financial year January 1 – December 31
Corporate tax The corporate tax rate is 25%.
Withholding tax For non-residents
Particulars WHT (%)
Dividend 12.5
Interest 12.5
Royalty 12.5
Technical Service Fee 12.5
Bolivia payroll tax rates There are no Bolivia employer payroll taxes.
Sales tax The sales tax is 13%.
Employers’ social security and statutory contributions Employees contribute towards their retirement pension. The rate of contribution is 12.7% of their gross salaries (with a threshold of US$18,300 annually). Employees with salaries of more than 13,000BOB have to give a social contribution of 1-10% of their gross salaries in addition to the retirement pension contribution.
Reimbursements To claim the expense reimbursements, the employees must present a scanned copy of the receipts.
Public pension Bolivia has a nationalized pension system that covers people in the informal sector as well.
Medical insurance Both employees and employers have to contribute to the medical insurance of the employees. In case of illness or injury, they are covered by this plan and do not have to pay out of pocket.

Filing and paying taxes requires a lot of time, skill, and knowledge. Companies need to be well versed in accounting practices, local laws, and customs. You can either,

  • Set up an in-house team to handle all the tax responsibilities, or 
  • Hire a local payroll specialist such as Skuad that can make payroll management and taxation simpler for you. Our term of experts will also ensure that you comply with all the payroll and taxation laws in Bolivia. Talk to us to learn more.

Incorporation: How to Set Up a Subsidiary in Bolivia

Here’s how to set up different forms of companies in Bolivia:

  • An LLC should have at least one director (resident of Bolivia) and two shareholders. LLCs with annual sales of more than US$170,000 must have their accounts audited and submit the documents to the authorities. 
  • A public company needs to have a minimum share capital of just US$100. Three directors are needed, one of which should be a resident of Bolivia. The company should also have at least three shareholders, a Company Secretary (resident), and a resident agent. All the relevant documents should be submitted in Spanish and approved by a Bolivian consulate. You will need to submit documents such as Memorandum of Association and Articles of Association. These documents contain basic information about the company such as the name of the company, registered address, purpose for which it is formed, names of directors and their addresses, etc. 
  • A Limited Liability Partnership needs to have at least two partners and two shareholders. The minimum paid-up capital is US$1. The liability of the partners is limited by the capital they bring. The LLP does not require financials to be audited and a company secretary is also not needed.

Forming a company is a difficult task that requires one to be well versed with the local laws and regulations. Incorporating a holding company in Bolivia is an even more difficult task. The local laws are not easy to grasp and are complex.

No matter which company you set up, there are endless formalities that need to be completed. Instead, companies can use Skuad’s EOR solution to form a subsidiary in Bolivia. It will simplify the process so that you can focus on business expansion and strategizing.

Professional Employer Organization (PEO) - Bolivia

A professional employer organization (PEO) provides employment-related services such as compliance, HR consultancy, filing taxes, health insurance, payroll processing, safety and risk mitigation, training, and development. The difference between PEO services and EOR solutions can be understood on the basis of following terms:

Responsibilities EOR PEO
Legal employer Yes No. Legal co-employer
Services for a minimum of 1-5 employees 5-10 employees
Local business registration Not required Required
Insurance Workers Compensation provided Not provided

Organizations planning to expand into new territories are better suited with a global EOR which becomes the legal employer on behalf of the organization. Instead of associating with a PEO, a co-employment partner, organizations have more to gain by utilizing the services of a EOR solution. The EOR solution safeguards organizations from unexpected policy changes, loss of control, and potential risks as the EOR bears every legal liability for the organization. In addition to these, the EOR handles payroll, tax, and employment law compliances. To know more about Skuad's EOR solution, Contact Skuad today.

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