Labor Law Compliance Guide for Bolivia

Bolivia, a Latin American country, has a population of approximately 12 million people. It has an economy shaped by natural gas, mining, and agriculture, though it faces headwinds from declining gas revenues and a widening fiscal deficit.

Category	Details
Minimum Wage	BOB 3,300 per month (effective January 2, 2026)
Overtime Wage	200% of the regular hourly rate (double pay)
Meal Breaks	1 hour
Rest Breaks	15 minutes
Working hours	8 hours/day, 48 hours/week
Salary Payment Cycle	Monthly
Payroll Taxes	Employer contributions 16.71–19.51% (social security, healthcare, housing, solidarity)
Paid Vacation	15 days
Overtime Hours	After 8 hours per day (max 2 additional hours)
Night Shift Hours	135% of the regular hourly rate (7 PM – 6 AM)
Holidays	13 public holidays in 2026
No Work Days	Sunday
Minimum Wage	Bolivia has a national minimum wage law. As of January 2, 2026, the minimum wage is BOB 3,300 per month (a 20% increase from the 2025 rate of BOB 2,750). This wage applies uniformly across all sectors and regions within the country. There are no specific jobs or types of workers exempt from the minimum wage law, and no regional variations exist. Employers are required to pay holiday pay to employees for mandated public holidays. Sunday and holiday work is paid at triple the regular rate (300%).

The Bolivian economy is primarily driven by key sectors such as natural gas, mining (particularly silver, zinc, and tin), agriculture (soybeans, coffee, and cocoa), and manufacturing. Bolivia’s nominal GDP was approximately $49.67 billion in 2024, though the economy contracted by an estimated 0.5% in 2025 according to the World Bank, driven by declining natural gas revenues and a fiscal deficit of 10.6% of GDP.

The official currency of Bolivia is the Boliviano (BOB).

Hiring Laws

Businesses intending to hire employees in Bolivia must register locally and establish a legal presence within the country. The cost of setting up a business entity varies, but it typically ranges from $2,000 to $5,000. The time to incorporate a business entity usually takes around 45 to 60 days. Employers are required to sign formal employment contracts with employees. These contracts should include clauses covering job description, compensation, working hours, termination conditions, and confidentiality agreements. Bolivian labor law treats employees and contractors differently, with specific regulations governing each category. For instance, contractors are generally not entitled to the same level of benefits as employees, such as social security.

Working Hours

The standard working hours in Bolivia are 8 hours per day, amounting to 48 hours per week. Overtime is compensated at 200% of the regular hourly rate (double pay) and applies to any work beyond 8 hours per day, with a maximum of 2 additional overtime hours per day. Night shift work, defined as work between 7:00 PM and 6:00 AM (updated effective December 25, 2025), is paid at 135% of the regular hourly rate. Work on Sundays or public holidays is paid at 300% of the regular rate (triple pay).

Under the 2025 labor reform, employers no longer need prior authorization for overtime but must keep detailed records. Non-payment of overtime results in a 6-month suspension of the employer's right to require overtime. Employees with caregiving responsibilities now have the right to request flexible schedules.

The minimum age for employment in Bolivia is 14 years, and there are strict regulations against child labor. Employers are prohibited from employing minors in hazardous conditions or during night shifts.

Payroll and Taxes

Employers in Bolivia are required to deduct and contribute to several payroll taxes. Employee contributions total approximately 12.71% of salary, while employer contributions range from 16.71% to 19.51%.

Employee contributions (approx. 12.71%):

Component	Rate
Pension (AFP individual account)	10.00%
AFP Commission	0.50%
Professional Risk Insurance	1.71%
Solidarity Contribution (Aporte Nacional Solidario)	0.50%

Employer contributions (approx. 16.71–19.51%):

Component	Rate
Health Insurance (CNS)	10.00%
Professional Risk (AFP)	1.71%
Housing Fund (Pro-Vivienda)	2.00%
Solidarity Employer Contribution	3.50% (increased from 3% under Law 1582, effective Jan 2025)

Bolivia does not use progressive income tax brackets. Instead, employment income is subject to the RC-IVA (Complementary Regime to VAT), a flat 13% tax. Income up to 4 times the national minimum wage is exempt. Employees can offset RC-IVA liability by submitting personal consumption invoices (facturas). The 13th-month bonus (Aguinaldo) and 14th-month bonus (Segundo Aguinaldo) are exempt from RC-IVA. Corporate income tax (IUE) is a flat 25% on profits.

Statutory Leave Policies

Bolivian law mandates several types of leaves for employees:

• Paid Vacation: Employees are entitled to 15 days of paid vacation after one year of service.

• Maternity Leave: 90 days, with 45 days before and 45 days after childbirth.

• Paternity Leave: 3 days following the birth of a child.

• Sick Leave: Paid sick leave is available with a doctor's certificate.

• Adoption Leave: Similar to maternity leave, applicable when adopting a child under one year of age.

• Mandated Holidays: Bolivia observes 13 public holidays in 2026, with several dates moved to create long weekends.

Holiday	2026 Date
New Year’s Day	January 1 (Thu)
Day of the Plurinational State	January 23 (Fri) — moved from Jan 22
Carnival	February 16–17 (Mon–Tue)
Good Friday	April 3 (Fri)
Labor Day	May 1 (Fri)
Corpus Christi	June 4 (Thu)
Bridge Day	June 5 (Fri)
Andean New Year (Año Nuevo Aymara)	June 22 (Mon) — moved from Jun 21
Independence Day	August 6 (Thu)
Bridge Day	August 7 (Fri)
Day of the Dead	November 2 (Mon)
Christmas Day	December 25 (Fri)

Each department also observes its own regional holiday (e.g., La Paz — July 16, Santa Cruz — September 24, Cochabamba — September 14).

Employee Benefits

Employers in Bolivia must provide a range of social security benefits, including retirement pensions, healthcare, and maternity benefits. Additionally, there are mandatory annual bonuses equivalent to one month’s salary, usually paid in December. Employers are also required to provide severance pay equivalent to one month’s salary for every year of service in case of termination.

Employee Termination

Bolivia does not follow At-Will Employment laws, meaning employers must have just cause to terminate an employee. Acceptable reasons include gross misconduct, violation of company policies, or redundancy due to economic reasons.

The termination process requires providing a notice period, typically 30 days, and offering severance pay. Employees or labor unions can challenge terminations legally, and wrongful termination can lead to reinstatement orders or compensation.

Employers can legally terminate an employee under conditions such as reaching retirement age, mutual agreement, resignation, or documented poor performance. However, dismissals without valid cause are subject to legal scrutiny, often resulting in significant financial penalties for the employer.