Bolivia
Knowledge Base
Frequently asked question, important data and information on EOR.
General information
$ 2250 BOB per month
Labor Law
Laws that regulate Labor Relationship
• Constitucion Politica del Estado (The Political Constitution of the State)
• Labor Code
• Tax Code
Onboarding guide
Requirements for a labor contract
• ID number (CI)
• Birth certificate
• Background check: FELCN, FELCC, REJAP
• New entry form
• CV in English and Spanish
• Photo
Pre-hire Medical exam
Not mandatory
Types of contracts
• Indefinite contract
• Fixed period contract
Probation Period
The probation period is 90 days for the employee. It can only be established for Indefinite- term contracts. During this period, the employer may terminate the relationship without obligation to compensate for the termination and employees can use this period to settle in to the company.
Are offer letters mandatory in the country?
Not Mandatory
Are digital signatures in labor contracts valid?
Not Permitted
Mandatory onboarding documents
• Photocopy CI
• Photocopy of birth certificate
• FEL CN
• FEL CC
• Rejap
• New entry form
• CV in English and Spanish duly endorsed
• Photo white background
• Physical Photo red background: The size of the red background photo depends on the contract place: for La Paz (2×2), for Santa Cruz (2.5×2.5) and for Cochabamba(3×3)
Statutory benefits
Annual Bonus
Mandatory and tax-free up to 1 month’s wage.
Additional bonus
14th-month is mandatory as a holiday bonus if GDP is over 4.5%.
Leaves (medical, maternity, paternity, etc.)
• Maternity Leave Bolivia: Mothers are entitled to 90 days. 45days before the expected due date and 45 after the birth of the child
• Paternity Leave Bolivia: Fathers are entitled to 3 days
• Sick leave: Employees can get paid time off for an injury or illness as long as they provide medical certificate from public social security system
Annual Leave (days per year)
The employee will enjoy a minimum and continuous period of paid annual rest, for the following periods:
1 – 5 years of seniority: 15 days
5 – 10 years of seniority:20 days
10 or more years of seniority: 30 days
How do vacation days expire?
Law do not mention anything about the expiration of the vacation days, only that they must be paid at the 100% of the regular wage.
Official Holidays
• 1 Jan, New Year’s Day
• 22 Jan, Plurinational State Foundation Day
• 20 Feb, Carnival Monday
• 21 Feb, Carnival Tuesday
• 7 Apr, Good Friday
• 1 May, Labour Day
• 8 Jun, Corpus Christi
• 21 Jun, Andean New Year
• 6 Aug, Independence Day
• 2 Nov, All souls’ Day
• 25 Dec, Christmas Day
Working on holidays and Sundays
Paid at 100% extra on the regular wage.
Number of Working hours
8 hours a day, 48 hours a week.
Overtime
Paid at 100% extra on the regular wage.
Social Security (what does it cover)
• Old age and disability
• Sickness and maternity benefits
• Worker’s medical benefits
• Coverage for work-related injuries
• Disability benefits
• Unemployment benefits
• Benefits for family allowances.
Payroll
Salary payment currency
Boliviano (BOB)
Can salary be paid in a different currency other than the local currency?
Salaries can be fixed in Bolivianos (the Bolivian legal currency) or in a foreign currency. However, the payroll must be in bolivianos for the purpose of paying employee’s contributions and taxes.
Payment frequency
Monthly
VAT percentage
13%
Income Tax
The personal income tax (Regimen Complementario del Impuesto al Valor Agregado or RC-IVA) rate is 13%
Tax Payer Identification Number
Tax Payer Identification Number – NIT (Número de Identificación Tributaria)
Offboarding
Voluntary resignation
If an employee decides to resign from their position, the employer must pay the pending salarIes and the indemnities for the period worked in the company until the day of the resignation. Indemnities are the equivalent of 1 month’s salary for each year worked.
Contract termination
• Agreement between the parties to terminate it
• Resignation of the worker
• Death of the worker
• Expiration of the contract term
• Term of agreed work
Justified Dismissal
Employers can terminate employees for cause based on the following factors:
• Intentional material prejudice
• Disclosure of industrial secrets
• Omissions or imprudence related to industrial security and hygiene
• Theft or robbery
• Breach of employment agreement, either total or partial
Unjustified Dismissal
An employer can terminate an employment contract at any time without a just cause. The employee has two options:
• Accept dismissal and be paid social benefits (severance).
• Demand reinstatement and continue working in the same position and with the same salary.
If it is an unjustified dismissal: the employer must give 3 months’ notice. If the employer fails to do so, he must pay the dismissal for lack of notice to the employee. In addition, the employer must pay the seniority time, which is equivalent to one month’s salary per year of service. Also, outstanding benefits such as vacations and proportional Christmas bonus are paid.
If the dismissal is justified: the employee loses the right to eviction and seniority time. He/she is only paid the proportional benefits and outstanding salaries.
Minimum Notice Period
There is no mandatory notice period under Bolivian labour law.
Immigration
Visa process
1. Appointment to present and review the required documents
2. The day after the presentation, there is a new appointment to verify the validity of the application and documents
3. If the documents are valid, the residence and work permit is issued. The applicant’s passport must remain at the Migration office until the work permit is delivered
4. Once the Work permit is delivered, the applicant, must process the Identity card before the General Personal Identification Service (SEGIP)
Visa documents
• INSO Cerificate
• Interpol Certificate
• FELCC Certificate (Anti-crime department- Fuerza Especial de Lucha Contra el Crimen)
• FELCN Certificate (Special Force to Fight Drug Trafficking- Fuerza Especial de Lucha Contra el Narcotráfico)
• Medical Certificate
• Labor contract stamped by the Ministry of Labor
• SEGIP Certificate (Personal Identification Service office- Servicio General de Identificación Personal)
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