Employer of record in Bolivia: costs and rules

What a US employer has to plan for in Bolivia

Bolivia's costs come less from payroll taxes than from mandated payments to the worker. The rules below are as UDAPE's November 2024 guide describes them, unless another source is named.

• Aguinaldo: one full month's salary, without deductions, paid in December, pro rata for part of the year.
• A possible second aguinaldo. The "Esfuerzo por Bolivia" bonus (Decreto Supremo 1802 of 2013) doubles the aguinaldo in years when GDP grew more than 4.5% in the 12 months before September. Budget for it as a risk.
• Indemnización: one salary per year of service, proportional for part years, for workers with more than 90 days (Decreto Supremo 110 of 2009).
• Notice: 90 days from the employer and 30 days from the worker after three months of work. Skip the employer's notice and you owe desahucio of three salaries.
• Hours: 8 a day and 48 a week under the General Labor Law.
• Minimum wage: BOB 3,300 a month from January 2026, per Remote's country page, a 20% rise from BOB 2,750 reported by Bloomberg Linea and Diario Correo. We could not read the decree itself.

Sources disagree on probation. Remote gives 30 to 90 days; UDAPE's guide describes no current probation period, only the 90-day threshold for indemnity. Vacation, per Remote, is 15 working days for 1 to 5 years of service, 20 for 5 to 10 and 30 after 10.

Employment costs and rules in Bolivia

What an EOR charges to employ someone in Bolivia

The confirmed cost of one Bolivian employee

We have not confirmed a 2026 exchange rate. The long-standing official rate of 6.96 bolivianos per dollar may no longer reflect conditions, so check the Banco Central de Bolivia before you set a boliviano salary. Because every confirmed line is a share of pay, the table works in dollars.

Arithmetic: 10% x 40,000 = 4,000; 40,000 / 12 = 3,333.33 for the aguinaldo and the same for the indemnity reserve; together 10,666.67, or 26.67%. A second aguinaldo year adds another $3,333.33. The fee is $7,188 at $599 a month, $2,388 at $199, $4,788 at $399 and $8,388 at $699. Secondary sources report further employer charges for professional risk, an employer solidarity contribution and housing; we have not confirmed those rates, so expect the real figure to be higher. Try other salaries in the cost calculator.

Do not trust a 0% tax table

Remote's Bolivia country page shows every employer and employee contribution as 0%, which is a placeholder, not the law. It also lists severance as three months, which matches desahucio rather than the one-salary-per-year indemnity. If a quote leans on those figures, it will understate your cost. Ask the EOR for its contribution lines in writing.

Entity, EOR or contractor in Bolivia

A Bolivian company of your own means registering with the health fund and pension manager and handling aguinaldo, indemnity and exchange-rate questions yourself. For one or two people an EOR is usually simpler; our EOR versus entity guide covers the break-even. Contractors avoid aguinaldo and indemnity, but a full-time, directed role can be treated as employment, and then those payments are owed back to the start. Compare contractor platforms and contractor of record services.

Picking an EOR for Bolivia

Three questions separate Bolivia quotes: does the provider employ through its own Bolivian entity or a partner, which exchange rate funds the boliviano payroll, and how does it reserve for the indemnity? Multiplier, top of our scores at 79/100, says it operates through its own legal entities in every country; Oyster, at 64/100, uses owned entities and partners. The method is on how we score.

Compare everyone in the EOR rankings, our Remote, Deel and Oyster reviews, and Bolivia against Peru or Paraguay in the cost index.