Paraguay (PY)
Affordable South American residency hub with low taxes, warm climate, Mercosur access, growing expat communities, and a practical base in Asuncion, Encarnacion and Ciudad del Este.
Social Security in Paraguay
Benefits, contributions, and how the system works for expats.
Paraguay social security is centred on IPS for formal employees. Informal workers, freelancers and retirees often need private health and retirement planning because coverage is not automatic.
Cedula / IPS insured number
Cedula de Identidad / Numero de asegurado IPS
Foreigners obtain cedula after residency approval. Formal employees are registered with IPS by the employer.
- Employment payroll
- IPS healthcare
- Pension contribution records
- Banking and credit
- Tax/RUC processes
- Driver licence and contracts
Benefits & Support Payments
IPS healthcare
Seguro de salud IPS
Medical care for insured workers and eligible dependants.
Formal employees with active IPS contributions and eligible dependants
Employer registration and IPS enrolment
Old-age pension
Jubilacion ordinaria
Monthly pension for workers meeting age and contribution requirements.
IPS contributors meeting retirement conditions
Apply through IPS with contribution record and identity documents
Sickness benefit
Subsidio por reposo
Income support during certified medical leave.
Eligible IPS contributors with medical certification
Employer and IPS paperwork with medical certificates
Maternity benefit
Subsidio de maternidad
Income replacement during maternity leave.
Eligible insured workers
Through IPS/employer with prenatal and birth documentation
Work injury coverage
Riesgo laboral
Medical and benefit coverage for occupational accidents/disease.
Formal workers and covered categories
Report accident immediately to employer and IPS
Contribution Overview
General formal employment contribution is commonly 9% employee and 16.5% employer to IPS. Verify special regimes and current tables for your sector.
International Social Security Agreements
Paraguay participates in Mercosur/social security coordination contexts and has selected bilateral arrangements. Cross-border workers should verify pension totalisation with IPS and home-country authorities before relying on portability.
Ask for IPS proof after starting work. A signed contract without IPS payments leaves you exposed for healthcare and pension history.
Social Security
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