Bolivia is the country with the most official languages (37). Aside from Spanish, as per the country's constitution, all the languages of the nation and the indigenous people are recognized as official languages. They include Aymara, Araona, Baure, Bésiro, Canichana, Cavineño, Cayubaba, Chácobo, Chimán, Ese Ejja, Guaraní, Guarasu’we, Guarayu, Itonama, Leco, Machajuyai-kallawaya, Machineri, Maropa, Mojeño-Trinitario, Mojeño-Ignaciano, Moré, Mosetén, Movima, Pacaa, Puquina, Quechua, Sirionó, Tacana, Tapiete, Toromona, Uru-Chipaya, Weenhayek, Yaminawa, Yuki, Yuracaré and Zamuco.

Bolivia Time Zone (UTC-04:00)

Undoubtedly, payroll is a critical process for any organization. Pay cycle in Bolivia refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

The payroll frequency is Monthly in Bolivia.

In Bolivia, a 13th salary is required at the end of the year and is equivalent to one month’s pay.

Christmas bonus is not subject to tax and social security contributions.

14th-month salary is also a mandatory bonus if GDP is over 4.50% or makes annual profits. All employees must receive one additional monthly salary, subject to a cap of 25.00% of the company’s profits.

As of January 1, 2023, the monthly minimum wage in Bolivia is 2,362 BOB

The labour inspection authority must approve overtime. It is limited to no more than 2 hours per day once approved.

Overtime is compensated at a rate of 200% of regular pay for both non-working days and overtime hours. 

As per the data retention policy in Bolivia, documents related to the operations, microfilmed, registered in magnetic, and/or electronic media, must be in custody for a period not less than ten years. 

In Bolivia, employers must register with the Ministry of Labour and social security entities. Businesses with a registered entity in Bolivia must employ a workforce that consists of at least 85 percent nationals. Failure to comply can result in sanction.

Employers must submit a signed employment contract to the Ministry of Labour for approval. Under the labour law, the contract must be drafted in Spanish. It must include

Required documents

• The names of all parties involved.
• The employed party’s personal data.
• The nature of the employee’s position.
• The duration of the contract.
• The payment period, method, and amount of the worker’s salary.
• The employer’s strategy for measuring works (time, units of work, etc.).
• The place of work.
• The employee’s heir(s).
• Other considerations regarding valid employment contracts are as follows:
• Collective employment contracts are acceptable.
• Under most circumstances, an employment contract must be indefinite.
• The regulations established by the General Labour Law are implied terms within employment contracts.

Probation period for permanent employees is one to three months.

There are 10 public holidays.

• Jan 1: New Year’s Day
• Jan 23: Plurinational State Foundation Day
• Feb 2: Candlemas
• Feb 20 and Feb 21: Shrove Monday and Tuesday (Carnival)
• Apr 7: Good Friday
• May 1: Labour Day
• Jun 8: Corpus Christi
• Jun 21: Wilkakuti
• Aug 2: Agrarian Reform Day
• Aug 6: Independence Day
• Oct 17: National Dignity Day
• Nov 2: All Souls Day
• Dec 25: Christmas Day

Employees are paid for sick leave starting on the fifth day of illness and for a total of 26 weeks over the course of a year. A medical certificate proving illness must be presented by the employee.

If medical care is shown, the sick leave can be extended for another 26 weeks. An employee is entitled to 100% pay for common illnesses. The employer, on the other hand, is entitled to a 75% reimbursement from social security.

Mothers are entitled to a total of 90 days, which is divided into 45 days before the expected due date and 45 after the birth of the child. Pay given to a mother on maternity leave is 100% of the national minimum wage. However, the employer is entitled to receive a 90% reimbursement from social security.

From the 5th month of pregnancy, the mother is entitled to a prenatal subsidy and a nursing subsidy until the child is 1 year old. Both subsidies are the equivalent of one month’s salary per month.

From the date that the child is born, mothers are entitled to job protection of 1 year.

Fathers are entitled to three days' pay for the birth of a child. Fathers are liable to not losing their jobs for a year after their child is born.

There is no other statutory leave in Bolivia.

There is no mandatory notice period under Bolivian labour law.

In Bolivia, severance pay is mandatory if applicable. Still, the amount differs based on the type of termination, i.e., termination by an employee, termination by mutual agreement, termination without cause, and termination with a cause in an indefinite term agreement and fixed-term agreement.

It is common for a severance payment to be calculated as one month’s regular salary payment for each completed year of service.

Non-citizens of Bolivia need to be registered with the Labour Ministry.

Foreign employees do not require work permits, but their work agreements must be registered with the Bolivian labour authorities within 90 days of signing. Employees need a special purpose visa to sign the agreement and a one-year residence visa.

In Bolivia, the following verifications are done prior to employment:

• Criminal Records
• Civil records
• Education records
• Employment verification
• Motor vehicle records- If required by employer