Few markets in South America reward a first look the way this one does. As a founding MERCOSUR member, Paraguay trades freely with Argentina, Brazil and Uruguay. Itaipu supplies cheap power, the workforce is young, and taxation is territorial. World Bank figures put the population at 7.01 million in 2025, with real growth of 6.6 percent. Labor series come from the National Statistics Institute. A PEO Paraguay engagement buys entry without an S.R.L. of your own: employment under the Labor Code (Código del Trabajo, Ley 213/93), social security through the IPS, and salaries paid in guaranies.
Why Businesses Choose a PEO in Paraguay
Begin with what the employer pays, because that is where this market stands apart. Commercial employers contribute 16.5 percent on top of gross salary. Of that, 14 points fund IPS pensions and health, and 2.5 points go to the Ministry of Public Health. Employees pay 9 percent, withheld at source. Total employer cost therefore sits near gross times 1.165 before benefits. That is light by regional standards, which helps explain why buyers price payroll services in Paraguay against Argentina and Brazil. Registration runs through the IPS, with Labor records filed at MTESS.
Two features catch foreign employers out. The aguinaldo is a thirteenth-month salary due by 31 December. It escapes IPS and income tax, and adds 8.33 percent to the annual bill. The second is an absence. Personal income tax (IRP, Ley 6380/19) is assessed once a year at 8, 9 and 10 percent. It bites above roughly PYG 80 million of gross service income. Ordinary salaries carry no monthly withholding. That makes payroll outsourcing in Paraguay work simpler than the same job next door, since the 9 percent IPS line is the only monthly deduction.
The rest is quickly stated. A 48-hour week. Paid leave of 12 working days to five years of service, 18 days to ten, 30 days beyond. Severance accrues at 15 days a year; preaviso (notice) runs 30, 45 or 60 days by tenure. Overtime pays 50 percent extra by day and 100 percent at night or on holidays. The minimum wage has been PYG 3,044,000 a month since 1 July 2026 under Decreto N 6225. It also sets the bonificacion familiar, 5 percent per dependent child for lower earners. DNIT collects a 10 percent VAT and a 10 percent corporate tax (IRE).
Now the models, because the labels get used loosely. Co-employment presumes you hold a Paraguayan S.R.L. or S.A. and share employer duties. Most of what is sold as a professional employer organization Paraguay buyers can use is really the Employer of Record variant. The provider’s entity signs, and you need no company. Our employer of record Paraguay guide walks that route. Payroll outsourcing is the third door. The contract stays in your name; the arithmetic and the filings do not. Exporters should also weigh the maquila regime (Ley 1064/1997), taxed at a single 1 percent on local value added. Foreign hires need residency from the Dirección General de Migraciones and a cedula first.
I reviewed ten providers here, leading with the local houses that do the daily nomina work. Anyone assembling a wider southern-cone team should read this beside PEO Argentina and PEO Brazil. A Paraguay PEO arrangement prices and behaves quite differently.
Top 10 PEO and Payroll Services Providers in Paraguay
Six of the ten are Paraguayan houses; four are global or regional platforms with confirmed coverage here. Each met the same criteria. Proven IPS registration and contribution handling. Accurate aguinaldo and severance accrual. Correct MTESS filings, with the July 2026 wage rise applied. For PEO and EOR work, I wanted a real Paraguayan entity too, since a PEO payroll company Paraguay clients trust has to sign as employer.
Guarani payroll, with multi-currency funding, predictable pricing, and Spanish and English support, closed the list. Recruitment agencies and general BPO shops were left out. Every PEO firm Paraguay buyers see below was read on its own site.
All providers appear in A-to-Z order.
Bayton
Company Description:
Bayton is a staffing and HR group with four decades behind it, present in Argentina, Colombia, Uruguay, and Paraguay. It runs separate PEO and payroll lines from its Asuncion office rather than folding both into one product.
Key Specialty Area:
PEO and payroll kept as separate products
Pricing and Service Models:
On quotation, shaped by headcount and which line you buy.
Key Advantages:
- Regional coverage across four South American markets
- Legal structures for firms with no local presence
- Digital payslips and payroll simulations as standard
Scope of Services:
- PEO covering personnel administration, benefits and tax management
- Salary runs with contribution calculations and reporting
- Outsourced and temporary staff placed through the same office
Our Verdict
Best for firms staffing Paraguay as one leg of a southern-cone rollout.
Biz Latin Hub
Company Description:
Biz Latin Hub, now part of Vistra, has offices in Asuncion and covers 18 Latin American and Caribbean markets through subsidiaries it owns outright. Its Paraguay guide was refreshed in February 2026.
Key Specialty Area:
Latin American entities it owns outright
Pricing and Service Models:
On quotation; a free payroll calculator sits on the site.
Key Advantages:
- Owns its Latin American entities rather than renting partners
- Run its payroll calculator before you speak to sales
- Sets up your own entity once the EOR stops fitting
Scope of Services:
- EOR hiring through its own Paraguayan subsidiary
- Payroll processing with statutory contributions and filings
- Accounting, tax and corporate legal work under one roof
Our Verdict
Best for buyers who may convert an EOR hire into a local entity later.
Capital Humano
Company Description:
Capital Humano is a Paraguayan HR consultancy. Its administracion de nomina (payroll administration) line sits alongside outsourcing, selection, and training, and its counters show 426 outsourced staff and 374 client companies.
Key Specialty Area:
Nomina administration plus outsourced local headcount
Pricing and Service Models:
By quotation, normally billed as a set monthly amount per person.
Key Advantages:
- Payroll and staff outsourcing bought from the same team
- IPS registration done by people you can telephone
- Track record across several hundred local client companies
Scope of Services:
- Gross-to-net payroll administration with payslip issue
- IPS registration and monthly contribution filing
- Outsourced staff administered end to end
Our Verdict
Best for local subsidiaries that want payroll and outsourced headcount in one place.
CIME
Company Description:
CIME, or Consultoria Integral del Mercosur, has run for more than 25 years from Asuncion, Coronel Oviedo and Ciudad del Este. Its site lists one of the few explicit local PEO and EOR service lines.
Key Specialty Area:
One of the few locals naming PEO outright
Pricing and Service Models:
On quotation, following a first advisory session, it gives free.
Key Advantages:
- States plainly that it acts as EOR and PEO
- Three Paraguayan offices, including the Brazilian border
- Migration and visa work handled by the same firm
Scope of Services:
- PEO and EOR hiring without a client entity
- Accounting, tax compliance and nomina under IFRS practice
- Residency, visas and background checks for staff
Our Verdict
Best for foreign investors who want employment, accounting and immigration in one contract.
Deel
Company Description:
Deel runs EOR, payroll and contractor work in over 150 countries. Deel serves Paraguay through a local partner entity rather than one it owns.
Key Specialty Area:
Paraguay fee stated before any sales call
Pricing and Service Models:
The Paraguay page starts its management fee at $599 per employee monthly.
Key Advantages:
- The monthly fee is printed on the country page
- First hire able to start within about three days
- Employer cost modeled before you request a quote
Scope of Services:
- EOR hiring in guarantees with no client entity
- Global payroll for companies that already hold an S.R.L.
- IPS contributions, aguinaldo, and severance accrual
Our Verdict
Best for teams already on Deel elsewhere who want Paraguay on the same platform.
*As pricing is subject to change, we are listing prices as they stand in August 2026
Dynamus
Company Description:
Dynamus is an Asuncion HR group with more than two decades behind it. Its Gestión de Nominas line covers calculation, payment, and tracking of legal changes, with a specialized maquila staffing practice alongside.
Key Specialty Area:
Nomina management with a maquila staffing arm
Pricing and Service Models:
On quotation, priced off headcount and how much you hand over.
Key Advantages:
- Maquila staffing handled by a dedicated practice
- Legal changes monitored and applied to your payroll
- Administrative and operational functions outsourced together
Scope of Services:
- Payroll calculation, payment and legal change monitoring
- Administrative and operational tercerizacion of staff
- Field and point-of-sale teams managed on request
Our Verdict
Best for export manufacturers and field teams needing staffing and payroll together.
Folkpy
Company Description:
Folkpy, trading as Folk Services SRL, was founded in Asuncion in August 2018 as a pure payroll specialist. It reports running payroll for more than 1,600 employees across over 50 companies.
Key Specialty Area:
Payroll only, nothing else in the catalog
Pricing and Service Models:
On quotation, charged per person on the payroll each month.
Key Advantages:
- Payroll is the core business, not a sideline
- Own EMU platform included with the service
- Geo-referenced attendance app for distributed teams
Scope of Services:
- Payroll administration from contract through final settlement
- MTESS and IPS planilla preparation and regularization
- HRIS access with employee records held in one place
Our Verdict
Best for small and mid-sized employers wanting payroll run properly and cheaply.
GAF Consultores Empresariales
Company Description:
GAF Consultores Empresariales is a local Asuncion firm that pairs liquidacion de salarios (payroll processing) with accounting, tax, and investment advisory for companies entering the market.
Key Specialty Area:
Salaries, books, and incentive filings together
Pricing and Service Models:
On quotation, generally folded into a broader advisory fee.
Key Advantages:
- Prepares investment files under Ley 60/90 and maquila
- Paraguayan residency arranged for foreign personnel
- Company incorporation and domiciliation from the same firm
Scope of Services:
- Payroll processing and HR administration for local staff
- Accounting, administrative and tax compliance services
- Corporate services covering incorporation and representation
Our Verdict
Best for arriving investors who need payroll, books and incentive filings in one place.
Multiplier
Company Description:
Multiplier is a global EOR and payroll platform with a Paraguay page refreshed in March 2026, plus local pages for payroll, contractors and company registration. Every account gets a named manager.
Key Specialty Area:
Six Paraguay product pages, one platform
Pricing and Service Models:
On quotation; nothing is published for this country.
Key Advantages:
- Named account manager on every client account
- Compliant local contracts issued in minutes
- Multi-currency funding converted into Guarani payroll
Scope of Services:
- EOR employment through a local partner entity
- Managed payroll with IPS and IRP handling
- Aguinaldo and severance accrued through the platform
Our Verdict
Best for firms hiring one or two people here alongside several other countries.
Remote
Company Description:
Remote is a global employment platform that states plainly it owns its Paraguayan entity rather than renting a partner. Its PEO product is United States only, so Paraguay is served as EOR or global payroll.
Key Specialty Area:
Employs directly here, and says what it charges
Pricing and Service Models:
The site lists $699 monthly per employee for EOR, $29 for payroll.
Key Advantages:
- No partner sits between you and the employer
- Both EOR and payroll prices published openly
- Stock option administration included for local hires
Scope of Services:
- EOR hiring with contracts, payroll and benefits
- Global payroll for companies holding a Paraguayan entity
- Statutory contributions, leave and termination handled
Our Verdict
Best when you want the entity owned directly and the fee visible from the start.
*As pricing is subject to change, we are listing prices as they stand in August 2026
PEO and Payroll Services in Paraguay: Your Questions Answered
What is a PEO in Paraguay, and how is it usually delivered?
A professional employer organization takes over HR, payroll, and statutory compliance for your workforce. One local wrinkle matters. Genuine co-employment requires you to hold a Paraguayan S.R.L. or S.A., since someone must be the domestic employer on paper. Most foreign buyers have no such company, so PEO services in Paraguay usually arrive as an Employer of Record, with the provider’s entity signing. Either way, the Labor Code (Código del Trabajo, Ley 213/93) governs, and you keep direction of the work.
How do IPS contributions, tax, and the filings get done?
The provider calculates and pays in guaranies. It remits the employer’s 16.5 percent to the IPS on top of gross and withholds the employee’s 9 percent. It registers each hire, files Labor records with MTESS, and accrues the aguinaldo so December is funded rather than improvised. Here is the part that surprises people. IRP is assessed annually above a high exemption floor, so ordinary salaries carry no monthly income-tax withholding. The 9 percent contribution is the only compulsory monthly deduction.
PEO, EOR, payroll outsourcing or contractors: which is which in Paraguay?
Four arrangements, four risk allocations. Co-employment splits employer duties between you and the provider, and presumes you already hold a Paraguayan company. An EOR signs as employer through its own entity, leaving you with nothing to register. Outsourcing the nomina leaves the contract with you and hands off the arithmetic and paperwork, which suits firms that already hold an S.R.L. Using independent contractors is cheap until it is not. If the relationship looks subordinate, the Labor Code treats it as employment and back contributions follow.
Can foreign nationals go on a Paraguayan payroll through a PEO or EOR?
Yes, in a sequence that cannot be shortcut. A foreign hire needs residency from the Dirección General de Migraciones and a cedula de identidad first. Only then can the provider run local payroll and register them with the IPS. MERCOSUR nationals get a simplified route, so Argentine, Brazilian, and Uruguayan hires move faster. Sponsorship is possible where the provider employs through its own local company, and it will usually shepherd the paperwork. Timelines vary, so pin down scope and dates at proposal stage.
Which checks separate a solid PEO or payroll provider in Paraguay from the rest?
Ask for evidence, not assurances. IPS registration handled directly. Contributions remitted on time. Aguinaldo and severance accrued, not discovered in December. MTESS filings actually lodged. Check the July 2026 wage rise and the bonificacion familiar are applied. MTESS pushed the deadline for confirming Libros de Información Laboral to 31 October 2026; a provider worth hiring knows that unprompted. For PEO or EOR work, verify the Paraguayan entity exists. Then check Guarani payroll with multi-currency funding, maquila knowledge if you export, clear pricing, and bilingual support.
What does it cost to run PEO and payroll services in Paraguay?
Local Paraguay payroll services are quoted per employee per month, and they are the economical answer once you hold a local entity. Folkpy, CIME, Capital Humano, GAF Consultores Empresariales, Dynamus, and Bayton sit at the friendlier end. Global and regional EOR fees run roughly $300 to $800 per employee monthly. The two published prices here, $599 and $699, fall inside that band. On top come salary, the 16.5 percent contribution, and the aguinaldo, worth about 8.33 percent a year. It is still among the cheapest compliant payrolls in Latin America.
Helen is Anywherer’s Market Analyst & Content Researcher, with extensive experience in analyzing global employment markets and HR technology trends. She is skilled at turning complex market data into clear, well-researched insights that inform every piece of content. With a strong grasp of the EOR, PEO, and international hiring space, Helen plays a key role in keeping Anywherer’s research accurate, up to date, and genuinely useful for readers.
