Paraguay (PY)

Rules: 30 days paid sick leave per year under the Labour Code and IPS regulations, accruing from the first day of employment. For absences of 1–2 days: employer policy typically accepts a self-certification or verbal notification followed by written confirmation. For absences of 3 or more consecutive days: a medical certificate (certificado médico) from a registered IPS doctor or private practitioner is mandatory to trigger IPS subsidio por enfermedad (sickness benefit). Private clinic GP consultation costs: Gs. 80,000–200,000 (Sanatorio Migone, Tel: 021 220 400; La Costa, Tel: 021 611 4000; Hospital Bautista, Tel: 021 600 171; Santa Clara, Tel: 021 230 300 — all in Asunción). After exhausting 30 statutory sick days, further sick absence may be treated as unpaid or subject to negotiated contract terms — check your written contract. IPS sickness subsidy (subsidio por enfermedad): equals 70% of your registered IPS salary from day 4 of illness; paid by IPS (not the employer) for up to 26 weeks per illness. Claim at portal.ips.gov.py or your nearest IPS polyclinic. Minimum 8 weeks of IPS contributions required to access subsidio.

Doctor note: Most Paraguayan employers require a medical certificate from day 3 of absence; international and multinational employers operating in Asunción (BPO sector, banking, NGOs) often require one from day 1 for repeated short absences. The certificate must be issued by a registered doctor in Paraguay — IPS clinic certificate or a private practitioner's certificado médico are both accepted. Private consultation fee Gs. 80,000–200,000 (Sanatorio Migone 021 220 400; Hospital Bautista 021 600 171). For extended illnesses: IPS requires its own Form 750 (certificado de incapacidad) completed by an IPS-registered medical officer to trigger the subsidio payment. Do not use a home-country doctor's note without a certified Spanish translation — HR and IPS will reject notes in other languages.

Employer pay: Statutory sick leave (30 days/year) is fully paid by the employer at the employee's normal daily rate (Código Laboral Art. 72). For absences backed by IPS sickness subsidy (from day 4, after 3 days of employer responsibility): the employer typically pays the difference between 100% salary and the 70% IPS subsidio for the first 26 weeks (most Asunción professional contracts maintain full pay). After 26 weeks of IPS subsidio and continued incapacity: the employee may be referred for IPS disability pension (renta por incapacidad) evaluation. Employers cannot deduct salary for sick absences within the statutory allowance if a valid medical certificate is provided. If the employer disputes the certificate or terminates due to long-term illness: a Labour Court (Juzgado Laboral) claim for unfair dismissal can be filed. MTESS (mtess.gov.py; Tel: 021 414 8000) mediation is available before court filing.

Long-term: IPS provides long-term disability benefits (renta por incapacidad permanente) for contributors with a minimum of 18 months of IPS contributions who suffer a permanent disability of 66% or more. Benefit level: 50–100% of the contributory salary base, depending on the degree of disability. For foreign employees who leave Paraguay before accumulating sufficient IPS contributions: IPS accrued balances are not refundable on departure — they remain on account for the contributor's future use if they return. Private income protection insurance covering 60–80% of salary if unable to work due to illness or injury (cost USD 500–2,000/year depending on income and benefit period) is the recommended safety net for expat workers whose IPS contributions may be insufficient. Asunción-based insurers offering income protection: Aseguradora Paraguaya (asegupar.com.py; Tel: 021 449 0000); MAPFRE Paraguay (mapfre.com.py; Tel: 021 415 5200). Purchase before arriving — policies issued after a health event may exclude pre-existing conditions.

Max hours: 48 hours per week (8 hours/day) is the standard maximum for daytime work (trabajo diurno: 06:00–20:00) under the Labour Code. Night work (trabajo nocturno: 20:00–06:00): 42 hours/week maximum (7 hours/day). Mixed shifts (work spanning both day and night): 45 hours/week maximum (7.5 hours/day). Flexible working: no statutory right to flexible or remote working in Paraguay, but most professional and BPO-sector employers in Asunción offer flexible or hybrid arrangements. Domestic workers (empleados domésticos) and agricultural workers have different statutory frameworks — Labour Code provisions apply with modifications. Senior/management (personal de confianza) roles: these positions are often considered exempt from strict hourly limits — if your contract includes a "personal de confianza" designation, confirm whether overtime entitlements are excluded.

Min rest: Labour Code: minimum 36 consecutive hours of rest per week (typically Saturday afternoon plus Sunday for most Asunción professional roles). Minimum 12 hours rest between consecutive working days. Meal break: minimum 30 minutes for an 8-hour shift (not counted as working time unless the employee is required to remain available). Public holidays: Paraguay has 14 public holidays in 2026 including Constitution Day 20 June (Law 7544/2025) — all are paid days off. Working on a public holiday entitles the employee to double pay (salario doble) plus a compensatory rest day (day-off substituto) — verify current holiday list at mtess.gov.py annually. For foreign employees observing non-Paraguayan religious holidays: negotiate additional paid religious leave in the employment contract — not a statutory right in Paraguay but common practice for multinational employers.

Overtime: Overtime rates under the Labour Code: daytime overtime (hours beyond 48/week, 06:00–20:00): 50% premium above ordinary hourly rate; night overtime (hours beyond 42/week, 20:00–06:00): 100% premium (double time); public holiday and Sunday work beyond statutory hours: 100% premium. Overtime must be agreed in advance — employers cannot require unlimited compulsory overtime. Keep a personal time log (daily hours record) — this evidence is essential at MTESS conciliation or Juzgado Laboral for unpaid overtime claims. For management/confianza roles: confirm in writing whether your contract includes an all-inclusive salary covering overtime. If so, ensure the base salary is substantially above the minimum wage to reflect the overtime inclusion — courts have overturned all-inclusive clauses where the effective rate fell below the minimum wage equivalent.