Hire in Bolivia

A written fixed-term employment contract or a contract for specific work or services in Bolivia must receive approval from the relevant Ministry of Labor official. Failure to obtain approval can affect the validity of the agreement, potentially resulting in it being considered an indefinite contract with all its associated consequences.

Fixed-term contracts are permitted under exceptional circumstances, including:

• Temporary replacement of workers (e.g., during pregnancy or vacations)
• Situations where the employer needs to increase the workforce to meet specific product or production demands
• Completion of projects with predetermined delivery dates

Fixed-term contracts can be established for a maximum duration of one year and may be renewed once for the same period. However, if the contract is renewed for a second time, regardless of the duration, the employment relationship will transition into a permanent one.

The standard working schedule for employees is eight hours per day and 48 hours per week, not including breaks. However, for women, the normal weekly working schedule is reduced to 40 hours in a week.

According to labor regulations, employees have the right to a rest break after every five hours of work. The maximum duration of these rest breaks is two hours per day.

Employees in Bolivia have a right to the following bonuses:

Profit bonus: It is required that all employees receive an additional monthly salary when a company generates annual profits. However, there is a cap of 25% of the company’s profits for this additional payment. If the allocated amount is not sufficient to cover all employees, the employee will receive a proportionate payment based on their individual entitlement.

Christmas bonus: At the conclusion of each year, employees are eligible for an extra monthly salary or a prorated payment if their tenure is less than a year. The Christmas bonus is exempt from taxation and social security contributions. Employers must prepare and submit a dedicated payroll to document Christmas bonus payments. Additionally, the Bolivian Government has sanctioned a second Christmas bonus, which is disbursed annually if the country’s GDP exceeds 4.5% as determined in October of each year.

Seniority bonus: Employees who have maintained continuous service for two years or longer are eligible for a seniority bonus. The bonus is calculated based on three times the national minimum wage and the calculation follows the guidelines below:

• two to four years of continuous service: 5%
• five to seven years of continuous service: 11%
• eight to ten years of continuous service: 18%
• 11 to 14 years of continuous service: 26%
• 15 to 19 years of continuous service: 34%
• 20 to 24 years of continuous service: 42%
• 25 or more years of continuous service: 50%

An employer has the right to terminate an employee based on any of the valid grounds specified in labor laws, without being obligated to make any payments. Additionally, internal rules and disciplinary procedures outlined in the employer’s internal regulations, which employees are required to accept, can also be utilized as justifications for dismissing an employer has the right to unilaterally terminate an employment relationship at any time, even for reasons that are not specified in labor law. In such cases, the employee has the following options to consider:

1. Accept dismissal and receive severance compensation if they are entitled to it.
2. Insist that he or she be reinstated and continue to work in the same job and pay grade.

• In this scenario, the employee must initiate the administrative procedure with the Ministry of Labor.
• In order to uphold the dismissal, the employer is required to prove the employee is not entitled to reinstatement.

Upon termination, the employer in Bolivia is required to provide the Ministry of Labor with a document certifying their compliance with social security obligations and the absence of any outstanding debts.

In Bolivia, female employees and their spouses or partners are safeguarded against termination for a period of one year following the birth of a child. Additionally, union leaders and disabled employees are granted specific protections from termination.

Employees are eligible for severance pay if they are subjected to unjustified dismissal. The amount of severance pay corresponds to one month’s salary for each year of service, including any incomplete year for fixed-term employees.

However, the employer is not obligated to provide severance pay if the employee is dismissed before completing the 90-day probation period.

Employees have the right to paid annual leave after one year of services as follows:

• One to five years of service: 15 working days
• Five to ten years of service: 20 working days.
• After ten years of service: 30 working days.

Annual leave cannot be substituted or compensated with a monetary payment, except in cases of employment contract termination. However, any unused annual leave can be accumulated according to a prior written agreement.

Female employees in Bolivia are entitled to 90 days of fully paid maternity leave for each child’s birth, of which 45 days are designated as pre-natal leave.

According to social security regulations, pregnant employees or the spouses of pregnant employees are eligible for a pre-natal subsidy starting from the fifth month of pregnancy. They are also entitled to a nursing subsidy until the child reaches one year of age. These subsidies are provided by the employer and consist of monthly supplies of dairy and nutritional products equivalent to one monthly national minimum wage.

Female employees must be granted one hour per day for breastfeeding during the child’s first year, as specified by the employer. This hour should not be included in the calculation of the two-hour break entitlement.

Paternity Leave

Male employees in Bolivia are eligible for three days of paternity leave upon submission of a medical certificate. The employer is responsible for providing full payment during the paternity leave period.

Employees can request a leave of two hours per day to receive vocational training. To be eligible, the employee must have been working for the employer for at least six months and submit the registration certificate or regular student certificate issued by the educational institution. The leave shall not affect the employee’s remuneration.

The employee shall compensate for the leave hours on the same working day with the same number of hours. The compensated hours are not regarded as overtime.

Bolivia celebrates 10 national holidays annually.

Bolivia observes two half-day holidays: Father’s Day on March 19th and Mother’s Day on May 27th. If the dates fall on Sundays, the holiday will be observed on a work day on or before March 19th and May 27th.