Hire in Bolivia

Hire in Bolivia

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Bolivian Currency

Bolivian Boliviano (BOB)

The Capital of Bolivia

Sucre

Time Zone in Bolivia

GMT – 4

Important Facts About the Country of Bolivia

Introduction to Bolivia

Bolivia, formally recognized as the Plurinational State of Bolivia, is a landlocked nation situated in the western-central part of South America. La Paz functions as the administrative and executive capital, while Sucre holds the constitutional capital designation. The most populous city and principal industrial center is Santa Cruz de la Sierra. With an estimated population of twelve million, Bolivia is classified as a developing nation. Its key economic sectors encompass agriculture, forestry, fishing, mining, and textile production. Bolivia is renowned for its abundant mineral resources, particularly tin and silver.

What to Know about Bolivia’s Geography

Bolivia is surrounded by Brazil to the north and east, Paraguay to the southeast, Argentina to the south, Chile to the southwest, and Peru to the west. Encompassing a vast territory of approximately 1,098,000 square kilometers, Bolivia stands as the fifth largest country in South America.

Climate in Bolivia

The climate in Bolivia is significantly impacted by pronounced changes in altitude and precipitation, resulting in a varied range of climatic conditions throughout the country. June is characterized as the coldest and driest month of the year, whereas October emerges as the warmest period in Bolivia.

The Culture of Bolivia

Bolivia’s cultural landscape bears the profound influence of Spanish, Aymara, Quechua, and broader popular cultures prevalent across Latin America. The country boasts a vibrant folklore tradition, with its regional folk music celebrated for its diversity and uniqueness.

Religions Observed in Bolivia

Around 90% of Bolivia’s population adheres to the Christian faith, primarily identifying as Roman Catholic, Protestant, or Orthodox. Indigenous religions are practiced by approximately 3% of the Bolivian population.

Languages Spoken in Bolivia

Spanish is the predominant official language in Bolivia, spoken by approximately two-thirds of the population. Besides Spanish, Bolivia’s Constitution acknowledges 36 other official languages, including Aymara, Quechua, Chiquitano, and Guaraní.

Bolivian Human Resources at a Glance

Employment Law Protections in Bolivia

The principal legal framework overseeing employment relationships in Bolivia is the General Labor Act. Alongside this, several other crucial rules and regulations hold significance, including: 

  • Constitution of the Plurinational State of Bolivia
  • General Law on Occupational Health, Safety, and Welfare
  • Ministerial Resolution on Labour Inspection
  • Social Security Code
  • Law on Pensions

Employment Contracts in Bolivia

Employment contracts in Bolivia may be established through verbal or written agreements. Generally, these contracts are anticipated to be of an indefinite duration and necessitate a signed agreement. While there are circumstances where fixed-term contracts are allowed, they must be formally documented in writing. Verbal contracts are automatically considered to be of indefinite duration.

To attain legal validity, a written employment contract must receive approval from a Labor Inspector or a higher administrative authority.

Fixed Term Contacts for Bolivian Employees

In Bolivia, a written fixed-term employment contract or a contract for specific work or services requires approval from the pertinent Ministry of Labor official. Failing to secure this approval can impact the contract’s validity, potentially leading to its classification as an indefinite contract with all corresponding implications.

Fixed-term contracts are permissible under specific circumstances, including:

  • Temporary replacement of workers (e.g., during pregnancy or vacations)
  • Instances where the employer needs to augment the workforce to meet particular product or production demands
  • Completion of projects with predetermined delivery dates

Fixed-term contracts can be established for a maximum duration of one year and may be renewed once for the same period. However, if the contract is renewed for a second time, irrespective of the duration, the employment relationship will transition into a permanent one.

Pre-Employment Checks

Employers are not explicitly restricted from seeking information about an applicant’s past history, health status, or criminal record.

Bolivia's Guidelines Regarding Probation Period/Trial Period

The probation period for employees is capped at a maximum duration of three months. While it is feasible to extend or renew the probation period, the law does not specify any particular limitations. It is crucial to highlight that fixed-term contracts usually do not incorporate a probation period.

Regulations and Rules Regarding Working Hours in Bolivia

The regular working schedule for employees consists of eight hours per day and 48 hours per week, exclusive of breaks. However, women benefit from a reduced standard weekly working schedule of 40 hours.

In adherence to labor regulations, employees are entitled to a rest break after every five hours of work, with the maximum duration for these breaks set at two hours per day.

Bolivian Laws Regarding Overtime

Compensating for overtime work entails an additional salary of 100%, and the overtime hours should not surpass two hours per day. This 100% supplementary pay is also applicable to tasks performed on holidays. When it comes to work conducted on Sundays, employees have the right to compensation equivalent to three times their daily wage. Alternatively, they may opt for paid leave on another working day, as decided by the management.

Bolivian Timesheets & Record Keeping

Employers must keep a record of the Christmas bonuses disbursed to employees.

Rules Regarding Bonus and 13th Month Pay in Bolivia
Employees in Bolivia are entitled to various bonuses, including:

Profit Bonus: All employees must receive an additional monthly salary when a company generates annual profits. However, there is a cap of 25% of the company’s profits for this additional payment. If the allocated amount is insufficient to cover all employees, they will receive a proportionate payment based on individual entitlement.

Christmas Bonus: At the end of each year, employees are eligible for an extra monthly salary or a prorated payment if their tenure is less than a year. The Christmas bonus is exempt from taxation and social security contributions. Employers are required to prepare and submit a dedicated payroll to document Christmas bonus payments. Additionally, the Bolivian Government has approved a second Christmas bonus, disbursed annually if the country’s GDP exceeds 4.5%, as determined in October of each year.

Seniority Bonus: Employees with continuous service of two years or more qualify for a seniority bonus. The bonus is calculated based on three times the national minimum wage, with percentages determined as follows:
 

  • Two to four years of continuous service: 5%
  • Five to seven years of continuous service: 11%
  • Eight to ten years of continuous service: 18%
  • Eleven to 14 years of continuous service: 26%
  • Fifteen to 19 years of continuous service: 34%
  • Twenty to 24 years of continuous service: 42%
  • Twenty-five or more years of continuous service: 50%
Termination

An employer holds the right to terminate an employee based on valid grounds specified in labor laws without the obligation to make any payments. Moreover, internal rules and disciplinary procedures outlined in the employer’s internal regulations, which employees are required to accept, can also serve as justifications for dismissal. An employer can unilaterally terminate an employment relationship at any time, even for reasons not specified in labor law. In such cases, the employee has the following options:

1. Accept dismissal and receive severance compensation if entitled.

2. Insist on reinstatement and continue working in the same job and pay grade.

  • In this scenario, the employee must initiate the administrative procedure with the Ministry of Labor.
  • To uphold the dismissal, the employer must prove that the employee is not entitled to reinstatement.

Upon termination, the employer in Bolivia is required to provide the Ministry of Labor with a document certifying their compliance with social security obligations and the absence of any outstanding debts.

In Bolivia, female employees and their spouses or partners are protected against termination for one year following the birth of a child. Additionally, union leaders and disabled employees are granted specific protections from termination.

Bolivia's Requirements Regarding Notice Periods

There is no specified mandatory notice period for the termination of employment in Bolivia.

Redundancy/Severance Pay in Bolivia

Employees are entitled to severance pay in the event of unjustified dismissal. The severance pay is calculated at one month’s salary for each year of service, including any incomplete year for fixed-term employees.

However, the employer is not required to offer severance pay if the employee is dismissed before completing the 90-day probation period.

Post-Termination Restraints/Restrictive Covenants

Post-employment non-compete clauses may be included in employment contracts.

Data Protection

Explicit regulations outlining specific data protection obligations for employers are not in place. However, pertinent laws and regulations related to data protection in the country encompass the Bolivian Constitution, General Telecommunications Law, and Regulation for the Development of Technology of Information and Communication (RDTIC).

Tax and Social Security Information for Employers in Bolivia

Personal Income Tax in Bolivia

Individuals are taxed exclusively on their gross income originating from sources within Bolivia, irrespective of their nationality or residence. The tax rate is a flat 13%. Employers bear the responsibility of deducting and remitting the taxes to the appropriate authorities.

Social Security in Bolivia

Both employers and employees in Bolivia participate in various social security schemes through the following contributions:

Type Employee Contribution (%) Employer Contribution (%) Salary Cap (BOB)
Pension Fund 12.71* 60 times of national minimum wage (135,000 in 2023)
Supportive Social Contribution 1 to 10 **
Healthcare Contribution 10
Risk Insurance 1.71
Social Housing Plan Contribution 2
Solidarity contribution 3

*The pension contribution made by the employee includes the following components:

Type Contribution Rate (%)
Long-term SSO Contribution (Disability, Old Age and Death) 10.00
Common Risk 1.71
Pensionary Fund Commission 0.50
Solidarity Contribution for Pension 0.50

**Employees with a monthly employment income surpassing BOB 13,000 are obligated to contribute to Supportive Social Contributions in the following manner:

Monthly Employment Income (BOB) Contribution Rate (%)
13,000 – 25,000 1
25,000 – 35,000 5
Above 35,000 10

Employers must register their employees with social security authorities within the initial five days of employment.

*The provided rates serve as a general reference. Actual rates applied will vary.

Important Information for Bolivian Employees

Salary Payment

Compensation in Bolivia may be structured based on various timeframes, including hourly, daily, weekly, fortnightly, or monthly periods. Blue-collar workers typically receive their pay every 15 days, while employees and domestic workers are usually paid on a 30-day cycle. In-kind payment is permitted as part of the salary arrangement. Salaries must be disbursed in the local currency, on working days, and at the place of employment.

When remunerating employees, deductions are only permissible for income tax, social insurance contributions, and other legally mandated contributions. Prohibited deductions include those for workplace amenities such as rentals, utility bills, medicines, tools, or fines (unless authorized by the Ministry of Labor).

Payslip

Although there are no explicit legal mandates in Bolivia concerning payslips, it is recommended for employers to furnish employees with comprehensive payslips that delineate salary particulars, deductions, and other pertinent information.

Annual Leave

Employees are entitled to paid annual leave following one year of service, structured as follows:

  • One to five years of service: 15 working days
  • Five to ten years of service: 20 working days
  • After ten years of service: 30 working days

Annual leave is not interchangeable or compensable with a monetary payment, except in instances of employment contract termination. Nevertheless, any unused annual leave can be accrued as per a prearranged written agreement.

Sick Leave

Employees in Bolivia are entitled to paid sick leave upon presenting a medical certificate, although the specific duration is not explicitly defined by law.

Compensation for sick leave begins from the fifth day of illness and can extend for a maximum of 26 weeks within a one-year period. If continuous medical treatment can prevent permanent disability, an additional 26 weeks of sick leave may be granted.

Throughout sick leave, employees are entitled to receive their full salary. Employers may seek reimbursement from social security schemes, covering 75% (for common illnesses) or 90% (for work-related accidents or pregnancy-related inability to work) of the salaries paid to the employee during the sick leave period.

Maternity & Parental Leave

Female employees in Bolivia are entitled to 90 days of fully paid maternity leave for each child’s birth, with 45 days designated as pre-natal leave.

As per social security regulations, pregnant employees or their spouses are eligible for a pre-natal subsidy from the fifth month of pregnancy. Additionally, they receive a nursing subsidy until the child turns one. Employers provide these subsidies, consisting of monthly supplies of dairy and nutritional products equivalent to one monthly national minimum wage.

Female employees are granted one hour per day for breastfeeding during the child’s first year, as specified by the employer. This hour is not included in the calculation of the two-hour break entitlement.

Paternity Leave:

Male employees in Bolivia can avail themselves of three days of paternity leave upon presenting a medical certificate. Full payment during the paternity leave period is the responsibility of the employer.

Training Leave

Employees are permitted to request a daily leave of two hours for vocational training purposes. To qualify, the employee must have a minimum of six months of service with the employer and provide the registration certificate or a regular student certificate from the educational institution. Importantly, this leave does not impact the employee’s remuneration.

Compensation for the leave hours is required on the same working day, with an equal number of hours. These compensated hours are not considered as overtime.

Public Holidays

Bolivia commemorates 10 national holidays each year.

Additionally, two half-day holidays are recognized: Father’s Day on March 19th and Mother’s Day on May 27th. In the event these dates fall on Sundays, the observance of the holiday will be shifted to the nearest work day on or before March 19th and May 27th.

Benefits to the Employee in Bolivia

Bolivian Statutory Benefits

Employees are entitled to a range of benefits prescribed by law and collective agreements. These benefits encompass retirement pensions, healthcare insurance, maternity leave, paternity leave, annual leave, and sick leave.

Other Benefits

Apart from the basic entitlements, employers frequently provide the following additional benefits:
 

  • Performance bonuses
  • Private health and life insurance
  • Allowances for transportation, car, housing, accommodation, and utilities
  • Extended or supplementary leave days

Rules Regarding Visas and Foreign Workers in Bolivia

General Information

Visas

Bolivia’s visa policy is contingent on the visitor’s nationality and purpose of travel, categorized as follows:

  • Citizens from select countries, including the United States, European Union member states, and Australia, enjoy visa exemption for stays of up to 90 days.

  • Another group comprises countries whose citizens can acquire a tourist visa upon arrival, subject to payment and specific requirements that vary by country.

  • The third category involves countries whose citizens must secure special authorization before applying for a visa.

Irrespective of the category, all visitors must possess a valid passport and a yellow fever vaccination certificate. Visitor visas permit a maximum stay of 30 days per trip and 90 days annually.

Work Permits

To work in Bolivia, foreigners are required to possess a valid visa and work permit. The work permit, granted by the Ministry of Labor and Employment, is valid for a maximum of two years. The type of visa issued is determined by the purpose and duration of the individual’s stay, with options including a temporary resident visa or a work visa.

Upon arrival in Bolivia, foreign workers must, within 90 days, register their employment agreement with labor authorities and adhere to local regulations concerning benefits, payroll, and taxes.

Under the General Labor Law, an employer’s workforce cannot surpass 15% foreign nationals, with no exceptions allowed. Violations of this rule may result in penalties. Additionally, the aggregate compensation for foreign employees must not exceed 15% of the overall payroll of the employer.

Public Holidays Recognized by Bolivia in 2024

  Occasion Date
1 New Year’s Day January 1
2 Plurinational State Day January 22
3 Carnival February 12 – 13
4 Good Friday March 29
5 Labour Day May 1
6 Corpus Christi May 30
7 Aymara New Year June 21
8 National Day August 6
9 All Souls’ Day November 2
10 Christmas Day December 25

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