Paraguay Payroll

Paraguay PayrollTax year 2026

Paraguay payroll for private-sector employees in 2026: the two minimum wages of the year (G 2,899,048 a month to 30 June under Decreto N° 4122/2025 and G 3,044,000 from 1 July 2026 under Decreto N° 6225/2026 and Resolución MTESS N° 670/2026), the daily, hourly, night, part-time and apprentice minimums, working hours, overtime at 50%, night work at 30%, night overtime and holidays at 100%, the aguinaldo (13th salary, one twelfth of the year's pay, before 31 December, free of IPS and IRP), the family allowance (5% of the minimum wage per child), the payslip, permitted deductions, gross-to-net with the 9% IPS withholding, the employer's cost, and why a private employer withholds no income tax (IRP) from salaries. Also holidays, notice and the dismissal indemnity.

Not yet approved

Built from the law

Paraguay Social Contributions

Paraguay PayrollTax year 2026

Paraguay social security contributions to the Instituto de Previsión Social (IPS) for 2026: the general regime for employees (9% withheld from the worker, 16.5% employer as IPS collects it, of which 14% is the employer's IPS quota under Ley N° 98/1992, plus a 2.5% additional employer levy whose allocation is phased under Ley 7446/2024), what counts as salary for the base (overtime, commissions, bonuses, pay in kind; not the aguinaldo or the family allowance), the minimum-wage floor, domestic workers (Ley N° 5407/2015), part-time workers, voluntary affiliation at 13% (Ley N° 4933/2013), continuity contributions at 12.5%, teachers, ANDE staff and pensioners, the separate bank employees' fund (Caja Bancaria, 11% and 17%), monthly filing through the IPS REI system, and the fines of Ley N° 98/1992 and Ley N° 5655/2016.

Not yet approved

Built from the law