Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
Is your company contemplating expanding into Bolivia? Setting up an entity to manage your operations in a new country can be time-consuming, capital-intensive, and generally ineffective. A more innovative approach will utilize the services of an Employer of Record in Bolivia like INS Global.
Employer of Record (EOR) services allow you to outsource complex and time-intensive tasks, such as hiring, onboarding, and payroll management in a foreign country. This is done by hiring your employees on your behalf and acting as their legal employer in Bolivia, taking care of every required HR task, and removing employer liability issues in an unfamiliar regulatory system. All of this frees you up for more productive tasks while ensuring your contracts and operations comply with the local tax and employment laws.
With over 15 years of international EOR experience in over 100 countries, INS Global can guarantee a seamless entry into the Bolivian market. Our expert global mobility guides can help you avoid bureaucratic bottlenecks and the pitfall of non-compliance with foreign tax and labor laws.
As a result, you can start operations in as little as 48 hours in Bolivia. Employer of Record services are the perfect way to expand quickly while remaining safe thanks to professional expansion expertise.
Our knowledge of local legal and administrative procedures ensures you’re always on the right side of the law and free from worrying about costly fines or penalties.
Incorporating into a new market takes anywhere from 4 – 12 months. But you save time and cost when you partner with an EOR in Bolivia instead.
As you expand, we understand the need to stick to core organizational values and mission. Local market expertise helps you to understand the best way to integrate new team members or bring your ideas to a new audience.
An EOR with a global presence like INS Global can support your HR outsourcing or expansion needs in up to 100 countries at a time.
Incorporating your company abroad is a well-trodden road when expanding. However, the process is rife with challenges. For example, you may be unfamiliar with local laws regarding employment contracts, working hours, and tax laws. This lack of local expertise can cause severe delays or pose potentially threatening mistakes.
Conversely, an EOR partner with in-country experience understands the cultural nuances and can help with these tasks:
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately.
Here’s how INS Global Bolivian EOR manages your employee recruitment or assignment needs:
A Professional Employer Organization (PEO) shares many similarities with an Employer of Record. However, the way that services are provided by a PEO in Bolivia is notably different from an EOR in these ways:
Professional Employer Organization (PEO) | Employer of Record (EOR) |
A PEO provides HR services, including payroll management, tax, and legal regulation compliance to employees of other companies. | An EOR company becomes the legal employer and officially hires other companies’ employees while taking care of all HR-related functions. |
A PEO shares certain employment-related liabilities with the client company. | An EOR is responsible for the liabilities of recruiting and employing workers. |
The employment contract generally remains between the original company and the employee. | The original company directs the employment contract, but it is made between the Employer Of Record and the employee. |
The Bolivian labor laws require an employment contract to be written in Spanish and registered with the Labor Bureau before establishing an employment relationship. Also, businesses with a registered entity in the country must employ a workforce of at least 85% Bolivian nationals.
The law requires both employer and employee to provide the same written notice before termination or resignation. The length of the notice will depend on the employment length as follows:
Employment Length | Notice Period |
<3 months | 3days |
3 months – 1 year | 1 month |
> 1 year | 2 months |
Also, Bolivia has severance pay provisions for both employer-initiated terminations and employee-initiated resignations, depending on the reason for termination, length of employment, and the employee’s salary.
The standard working hours per week for full-time employees are 48 hours. Employees can only work for 5 hours continuously at most before taking a 2-hour rest period regardless of the total daily working hours. Night workers are entitled to a break after 3.5 hours of work.
Bolivia has a set minimum wage revised and adjusted periodically to reflect the cost of living changes. The minimum wage in 2023 is BOB 2,250/month or USD 327/month.
The labor inspection authority approves overtime work of no more than two hours per day, and employees working overtime are eligible for 200% of their regular wages.
Some mandatory paid holidays are recognized and observed by businesses and organizations nationwide. They include:
Other optional holidays vary from region to region or are specific to certain sectors or industries. These optional holidays are also subject to collective bargaining agreements (CBA).
Employees working on mandatory holidays are entitled to twice their regular daily wage. However, the law does not explicitly require higher pay for work on optional holidays.
In Bolivia, employees can go on paid annual leave or vacation based on their length of service and the number of days worked. The entitlement to leave increases over time as follows:
Length of Employment | Annual Leave |
1 – 5 years | 15 working days |
5 – 10 years | 20 working days |
> 10 years | 30 working days |
An employee must present a medical certificate to be eligible for sick leave. Employees are entitled to 5 paid sick leave days every year.
Female employees get up to 45 days of maternity leave before and after their child is born (90 days total). Working mothers must have 2 breaks of 30 minutes each during their working day to breastfeed their infants. These breaks are in addition to the regular meal breaks or rest periods.
There are no specific provisions under the current labor laws to establish a mandatory paternity leave period. However, some employers provide paternity leave as an additional benefit.
Bolivia’s corporate income tax rate is generally 25% on net profits. However, particular industries or regions may have specific tax rates and incentives.
The income tax rate for individuals in Bolivia is progressive from 13 – 25%, based on income level.
Foreigners who are tax residents in Bolivia are subject to the same income tax rates and regulations as Bolivian nationals.
Employers in Bolivia are required to manage all payroll taxes and social security contributions on behalf of their employees, including making deductions at source. Employer contributions to an employee’s social security fund are equivalent to 14.71% of an employee’s monthly salary (with employees also paying an additional 12.71%).
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
An Employer of Record (EOR) in Bolivia is an entity or organization that takes on an employer’s legal and administrative responsibilities. In practice, a foreign company can either open a subsidiary to become the Employer of Record of its abroad employees or use an EOR. Bolivia requires strict adherance to labor laws so it can save time and ensure compliance when asking INS Global to act as the Employer of Record.
EORs can take on a range of employer liabilities which vary from country to country, but it includes staff management responsibilities, such as:
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
Yes, EORs are a safe, legal way to hire or transfer employees in Bolivia for the long term or while you set up a company structure.
With INS Global, there is no set minimum or maximum number of staff. You can manage as many or as few workers as you need for your expansion strategy.
Absolutely, our recruitment experts have access to online and offline professional recruitment resources and are well-versed in local benchmarks and best practices.
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