Paraguay's labor market offers immediate access to 3,076,702 workers with a 69.4% participation rate, supported by 4.7% GDP growth in 2023 and rising foreign investment. The services sector employs 64.2% of the workforce, while a legal framework for telework enables remote operations across the country.
An Employer of Record (EOR) service acts as the legal employer for your Paraguayan team, eliminating the need to establish a local entity. Paraguay requires employers to navigate 16.5% social security contributions, mandatory aguinaldo payments equal to one month's salary, and vacation entitlements ranging from 12 to 30 days based on tenure. An EOR handles payroll processing, benefits administration, tax compliance, and employment contracts while ensuring adherence to local labor regulations. This guide compares eight providers operating in Paraguay.
Why Use an Employer of Record in Paraguay?
Paraguay presents a compelling entry point for regional expansion, with foreign direct investment reaching 2.6% of GDP driven by manufacturing and energy projects. The country serves as a founding member of MERCOSUR, providing preferential access to Argentina, Brazil, and Uruguay's combined markets. Wage competitiveness remains strong, with average monthly income at approximately 2,761,000 PYG and minimum wage set at 2,798,309 PYG. However, companies face language barriers, as Paraguay ranks 111th of 113 countries in English proficiency, requiring bilingual Spanish-Guaraní HR infrastructure that EOR providers maintain locally.
Our Picks for the 8 Best EOR Companies in Paraguay
Borderless AI
Borderless AI is an AI-powered Employer of Record that delivers automated contract generation, global payroll processing, and compliance management across 170+ countries. The platform eliminates the complexity of international hiring by leveraging artificial intelligence to streamline HR operations while maintaining full compliance with local employment regulations.
Why Use Borderless AI for EOR in Paraguay
Borderless AI provides rapid entity-free hiring in Paraguay with full legal compliance covering local employment law, social contributions, and benefits administration. The platform's AI-powered contract generation ensures accurate, legally compliant agreements aligned with Paraguayan labor standards, while 24/7 global support and 1-2 day onboarding enable companies to deploy talent in Asunción or throughout Paraguay with minimal administrative burden.
Key Benefits and Features
- Industry-leading 5-day global payroll processing for fast, reliable payments
- AI-powered contract generation ensuring Paraguay-specific compliance
- Real-time compliance monitoring across local employment regulations
- Direct entity ownership providing full control over the employment process
- Employee self-service platform with mobile accessibility
Price: $579/employee/month
Country Coverage: 170+ countries
G2 Rating: 4.9/5
Free Trial: Demo
Legal & Compliance: Borderless AI operates a full legal-entity model handling all aspects of Paraguayan employment law, including mandatory social contributions, statutory benefits, and labor contract requirements. The platform ensures continuous compliance with Paraguay's employment regulations through automated monitoring and local expertise.
Onboarding Speed: 1-2 days
Platform Experience: The platform features a modern technology dashboard with comprehensive employee self-service capabilities, enabling workers to manage onboarding, review paystubs, submit expenses, and access HR documentation through an intuitive interface optimized for both web and mobile use.
Customer Support: 24/7 in-house support globally with dedicated customer success managers and in-country experts providing immediate assistance across all time zones.
Pros & Cons
Skuad
Skuad delivers a unified platform for managing both employees and contractors across international markets. The company provides end-to-end payroll, benefits administration, and compliance management through a platform-led approach designed for businesses scaling their global workforce.
Why Use Skuad for EOR in Paraguay
Skuad offers comprehensive Paraguayan labor law compliance including payroll processing, tax management, and contractor-to-employee conversion capabilities at a competitive price point. The platform's multilingual support and global UI enable seamless management of Paraguay-based talent while ensuring adherence to local employment regulations and facilitating remote workforce integration across Latin America.
Key Benefits and Features
- Unified interface for managing both employees and contractors
- End-to-end payroll processing with benefits administration
- Paraguayan labour law compliance and tax management
- Remote and contractor conversion capabilities
- Multilingual platform support
Price: $199/employee/month
Country Coverage: 160+ countries
G2 Rating: 4.6/5
Free Trial: Demo only
Legal & Compliance: Skuad manages all aspects of Paraguayan labour law compliance, including payroll processing, tax withholding, and regulatory adherence. The platform facilitates remote worker management and supports contractor-to-employee conversions within Paraguay's legal framework.
Onboarding Speed: 2-3 days
Platform Experience: Skuad offers a platform-led experience with a global user interface that supports multilingual functionality, enabling companies to manage international teams including Paraguay-based workers through a centralized dashboard.
Customer Support: Responsive support infrastructure with documentation and guidance facilitating global hiring processes.
Pros & Cons
Remote
Remote provides employer of record services enabling companies to hire in Paraguay without establishing local entities. The platform emphasizes owned-entity infrastructure, compliance guarantees, and integrated benefits including equity management for international teams.
Why Use Remote for EOR in Paraguay
Remote's local entity ownership in Paraguay provides direct control over employment processes while guaranteeing compliance with labor and tax laws. The platform delivers rapid 1-2 day onboarding combined with benefits administration, payroll processing, and equity support, making it suitable for companies seeking comprehensive employment solutions for Paraguayan talent with integrated benefits management capabilities.
Key Benefits and Features
- Local entity ownership ensuring direct employment control
- Payroll, benefits, and equity management in one platform
- Guaranteed compliance with Paraguayan labor and tax laws
- Integration-enabled SaaS platform
- Free trial availability for evaluation
Price: $599/employee/month
Country Coverage: 170+ countries
G2 Rating: 4.6/5
Free Trial: Yes
Legal & Compliance: Remote claims local entity ownership in Paraguay, providing guaranteed compliance with all labor and tax regulations. This owned-entity model offers greater stability and control in managing employment obligations under Paraguayan law.
Onboarding Speed: 1-2 days
Platform Experience: Remote delivers a robust SaaS platform with integration capabilities, enabling companies to connect their existing HR systems while managing Paraguay-based employees through a unified interface.
Customer Support: Local specialists combined with global support infrastructure provide expertise on Paraguayan regulations alongside 24/7 assistance.
Pros & Cons
Safeguard Global
Safeguard Global offers comprehensive employer of record services with a service-oriented approach spanning 170+ countries. The company provides end-to-end solutions for hiring, contract management, and benefits administration with established expertise in global employment.
Why Use Safeguard Global for EOR in Paraguay
Safeguard Global provides local HR experts in Paraguay who deliver detailed guidance on employment contracts, benefits structures, and compliance requirements. The service-oriented model combines global platform capabilities with Paraguay-specific knowledge, enabling companies to access dedicated support throughout the employment lifecycle while maintaining compliance with local labor regulations through experienced regional teams.
Key Benefits and Features
- End-to-end EOR services covering hiring, contracts, and benefits
- Local HR experts providing Paraguay-specific guidance
- Service-oriented approach with dedicated support
- Comprehensive benefits administration
- Established global infrastructure
Price: From $499/employee/month
Country Coverage: 170+
G2 Rating: 4.3/5
Free Trial: Demo
Legal & Compliance: Safeguard Global employs local HR experts in Paraguay who provide detailed explanations of employment contracts, benefits requirements, and compliance obligations, ensuring companies understand and meet all regulatory requirements.
Onboarding Speed: Up to 2 weeks
Platform Experience: The service-oriented model emphasizes human expertise complemented by global platform support, focusing on personalized service delivery rather than pure self-service technology.
Customer Support: Local Paraguay-compliant team combined with global help desk infrastructure ensures both regional expertise and 24/7 availability.
Pros & Cons
Empleyo
Empleyo specializes in regional EOR and payroll services with particular expertise in Latin American markets including Paraguay. The company emphasizes local and regional knowledge to navigate the unique employment landscape of Spanish and Guaraní-speaking markets.
Why Use Empleyo for EOR in Paraguay
Empleyo delivers focused expertise in Paraguayan hiring laws with labour contract compliance specifically designed for Spanish and Guaraní market contexts. The regional platform combines localized support with bilingual HR capabilities, providing companies with culturally informed guidance for navigating Paraguay's employment requirements while ensuring contracts and documentation align with local linguistic and regulatory expectations.
Key Benefits and Features
- Regional EOR expertise focused on Paraguay and Latin America
- Labour contract compliance for Spanish/Guaraní markets
- Bilingual HR support with Latin America focus
- Localized platform with regional knowledge
- Cultural and linguistic alignment for Paraguay
Price: Custom
Country Coverage: Global
G2 Rating: Not listed
Free Trial: No
Legal & Compliance: Empleyo focuses specifically on Paraguayan hiring laws and labour contract compliance, with particular attention to the Spanish and Guaraní language requirements that characterize Paraguay's employment documentation and communication standards.
Onboarding Speed: 1-2 weeks
Platform Experience: Regional platform designed with Latin American employment contexts in mind, complemented by localized support structures that understand Paraguay's unique business environment.
Customer Support: Bilingual HR support team with dedicated Latin America focus, providing culturally appropriate guidance and communication in both Spanish and English.
Pros & Cons
Biz Latin Hub
Biz Latin Hub provides bundled EOR, legal, and accounting services tailored specifically for Paraguay and the broader Latin American and Caribbean markets. The company emphasizes on-the-ground presence and integrated business services beyond traditional EOR offerings.
Why Use Biz Latin Hub for EOR in Paraguay
Biz Latin Hub maintains a strong local network in Paraguay with bilingual staff providing integrated EOR, legal, and accounting services. The bundled approach addresses multiple aspects of business operations while ensuring integrity with local labor obligations, making it suitable for companies seeking comprehensive market entry support beyond basic employment services with on-the-ground Paraguay presence.
Key Benefits and Features
- Bundled EOR, legal, and accounting services
- Strong local network and Paraguay presence
- Bilingual staff with regional expertise
- On-the-ground support infrastructure
- Latin America-focused service model
Price: Custom
Country Coverage: Latin America & Caribbean
G2 Rating: Not listed
Free Trial: No
Legal & Compliance: Biz Latin Hub operates a strong local and regional network in Paraguay with bilingual staff ensuring integrity and compliance with all local labor obligations and regulatory requirements through direct market presence.
Onboarding Speed: 4-8 days
Platform Experience: Service-rich model emphasizing human expertise and local presence over technology features, with fewer publicly visible platform details reflecting the consultative approach.
Customer Support: On-the-ground support with recommended local presence in Paraguay, providing direct access to in-country teams and expertise.
Pros & Cons
Alex Global
Alex Global delivers regional EOR and HR outsourcing services across Latin America with specific support for Paraguay. The company combines platform capabilities with regional specialist knowledge to serve businesses expanding throughout the continent.
Why Use Alex Global for EOR in Paraguay
Alex Global provides dedicated Paraguay services through a multilingual team offering payroll processing, contract management, and benefits administration with regional specialist support. The platform combines technology with Latin American expertise, enabling companies to access Paraguay-focused HR outsourcing backed by broader regional knowledge and multilingual capabilities suitable for coordinating cross-border LatAm operations.
Key Benefits and Features
- Regional EOR services across Latin America
- Paraguay-specific payroll and contract management
- Multilingual HR support team
- Regional specialist knowledge
- Platform combined with human expertise
Price: Custom
Country Coverage: Latin America
G2 Rating: Not listed
Free Trial: Demo
Legal & Compliance: Alex Global manages payroll processing, employment contracts, and benefits administration for Paraguay with multilingual HR support ensuring compliance with local requirements throughout the employment lifecycle.
Onboarding Speed: Few weeks
Platform Experience: Combination of platform technology and regional support, balancing self-service capabilities with access to specialist knowledge for Latin American markets.
Customer Support: Multilingual team providing regional specialist support with expertise in Latin American employment contexts and languages.
Pros & Cons
Lano
Lano provides a centralized HR and payroll platform supporting employment across 170+ countries including Paraguay. The platform-first approach emphasizes unified management of both contractors and employees through a single dashboard.
Why Use Lano for EOR in Paraguay
Lano delivers entity-free Paraguay employment through a compliance model managing payroll and benefits administration via a centralized platform. The solution covers both contractor and employee management, enabling companies to hire and manage Paraguay-based talent through a unified dashboard while ensuring compliance without establishing local entities, with support from global headquarters and local country experts.
Key Benefits and Features
- Centralized HR/payroll platform across 170+ countries
- Contractor and employee coverage in Paraguay
- Entity-free employment compliance model
- Platform-first centralized dashboard
- Unified management interface
Price: €499/employee/month
Country Coverage: 170+ countries
G2 Rating: 4.1/5
Free Trial: Demo
Legal & Compliance: Lano's compliance model enables Paraguay employment without entity establishment, managing all payroll processing, benefits administration, and regulatory requirements through their platform infrastructure.
Onboarding Speed: Up to a week
Platform Experience: Platform-first model emphasizing a centralized dashboard that consolidates employee and contractor management across all countries including Paraguay into a single interface.
Customer Support: Global headquarters support complemented by local country experts providing guidance on Paraguay-specific employment requirements and regulations.
Pros & Cons
Selection Criteria and Methodology
Our evaluation of employer of record services for Paraguay employed a rigorous, data-driven methodology examining eight key dimensions of service delivery. Each provider was assessed using consistent, objective criteria to ensure fair comparison and enable informed decision-making for companies expanding into the Paraguayan market.
- Price: Pricing was evaluated across transparent per-employee monthly rates ranging from $199 to $599, with consideration for custom pricing models. We assessed value relative to feature sets, with lower-cost options like Skuad at $199/month against premium providers charging $579+/month, analyzing whether pricing differences correlate with service quality, speed, or specialized capabilities.
- Country Coverage: Global reach was assessed from regional Latin America specialists to providers operating in 170+ countries. Broader coverage indicates established infrastructure and compliance expertise across diverse regulatory environments, while regional specialists may offer deeper local market knowledge in Paraguay and neighboring countries.
- Key Features: Feature assessment examined AI-powered capabilities, unified contractor/employee management, equity administration, benefits packages, and platform automation. Providers offering innovative capabilities like AI contract generation and real-time compliance monitoring were distinguished from traditional service-oriented models.
- G2 Rating: Customer satisfaction was evaluated through verified G2 ratings ranging from 4.1/5 to 4.9/5, with consideration for providers lacking public ratings. Higher ratings from Borderless AI (4.9/5) and Remote (4.6/5) indicate strong user satisfaction, while absent ratings suggest limited public validation.
- Legal & Compliance: Compliance capabilities were assessed based on owned-entity models, local HR expertise in Paraguay, handling of social contributions, and adherence to Paraguayan labor law. Providers claiming direct entity ownership and dedicated local experts demonstrated stronger compliance infrastructure than those relying on third-party partnerships.
- Onboarding Speed: Time-to-productivity ranged from 1-2 days to several weeks. Faster onboarding from providers like Borderless AI and Remote (1-2 days) enables rapid market entry, while longer timelines from traditional providers may reflect more consultative, service-intensive approaches.
- Platform Experience: Technology evaluation considered modern SaaS platforms with employee self-service, integration capabilities, centralized dashboards, and mobile accessibility versus service-oriented models emphasizing human expertise. Platform-first providers offer greater automation and scalability, while service-rich models provide personalized support.
- Customer Support: Support quality was assessed through 24/7 availability, local Paraguay expertise, multilingual capabilities, and dedicated account management. Providers offering in-house global support with Paraguay specialists demonstrated stronger support infrastructure than those relying on regional or outsourced teams.
Expert Tips for Hiring in Paraguay
- Verify linguistic capabilities: Paraguay is officially bilingual with Spanish and Guaraní as recognized languages. Ensure your EOR provider can deliver employment contracts and documentation in appropriate languages, with support staff capable of communicating in Spanish to facilitate smooth employee relations and regulatory compliance.
- Understand social security obligations: Paraguay's Instituto de Previsión Social (IPS) mandates specific employer contributions for social security, health insurance, and retirement. Confirm your EOR accurately calculates and remits these contributions, typically totaling approximately 16.5% of gross salary for employers plus employee contributions.
- Plan for aguinaldo requirements: Paraguayan labor law requires a mandatory thirteenth-month salary payment (aguinaldo) typically paid in two installments. Ensure your EOR budgets and processes this statutory bonus correctly to avoid compliance issues and maintain employee satisfaction.
- Consider regional salary expectations: Research competitive compensation for your roles in Asunción versus other regions, as salary expectations vary significantly. Your EOR should provide market data for Paraguay-specific benchmarking to ensure competitive offers while maintaining cost efficiency.
- Evaluate platform localization: Beyond compliance, assess whether your EOR platform offers Spanish-language interfaces for employees, Guaraníes (PYG) currency support for payroll, and local banking relationships for efficient payments, ensuring seamless employee experience aligned with Paraguay's business environment.
How to Choose the Best EOR Company
- Define your Paraguay hiring timeline: Establish whether you need immediate hiring capability (1-2 days) or can accommodate longer onboarding periods. Urgent needs favor providers like Borderless AI or Remote, while comprehensive market entry planning may accommodate providers with longer setup times but deeper consultative support.
- Assess your budget parameters: Compare the pricing models in the comparison table against your per-employee budget. Lower-cost options like Skuad ($199/month) suit cost-conscious scaling, while premium providers ($579-$599/month) may justify higher costs through faster service, superior technology, or specialized features like equity management.
- Evaluate technology vs. service preferences: Determine whether your team values platform automation, self-service capabilities, and integration with existing HR systems, or prefers human-centric support with dedicated account management. Platform-first providers suit tech-savvy teams, while service-oriented models benefit organizations requiring guidance through complex regulatory environments.
- Verify Paraguay-specific expertise: Review each provider's legal and compliance capabilities for Paraguay specifically. Confirm they understand IPS social security requirements, aguinaldo payment obligations, Spanish/Guaraní documentation needs, and local labor law nuances rather than applying generic Latin American approaches.
- Examine customer validation: Prioritize providers with strong G2 ratings and verified customer reviews demonstrating successful Paraguay operations. Request references from companies with similar size and industry profiles to validate real-world performance beyond marketing claims.
- Test platform usability: Request demos from shortlisted providers, evaluating the employee onboarding experience, payroll processing workflows, document management capabilities, and reporting functionality. Ensure the platform meets the daily operational needs of both your HR team and Paraguay-based employees.
- Consider long-term scalability: If Paraguay represents your first Latin American market, evaluate whether providers can support future expansion into neighboring countries like Argentina, Brazil, or Chile through the same platform, avoiding the need to onboard multiple EOR vendors as you scale regionally.
Why Choose Borderless AI in Paraguay as an EOR Provider
Borderless AI distinguishes itself in the Paraguay EOR market through a combination of cutting-edge technology, rapid deployment capabilities, and comprehensive compliance infrastructure. The platform's AI-powered approach automates contract generation and payroll processing while maintaining full adherence to Paraguayan employment law, social contributions, and benefits administration requirements.
- Industry-leading speed: 1-2 day onboarding enables immediate talent deployment in Asunción or throughout Paraguay, accelerating your market entry timeline significantly compared to traditional providers requiring weeks for setup.
- Highest customer satisfaction: The 4.9/5 G2 rating represents the strongest customer validation among all providers evaluated, reflecting exceptional service quality, platform usability, and successful employment outcomes.
- AI-powered efficiency: Automated contract generation ensures Paraguay-specific compliance while reducing administrative burden, with real-time monitoring of regulatory changes to maintain continuous adherence to evolving labor law requirements.
- Global payroll excellence: Industry-leading 5-day payroll processing across 90+ currencies including Paraguayan Guaraníes ensures reliable, timely employee payments while maintaining flexibility for your financial operations.
- Comprehensive support infrastructure: 24/7 in-house global support combined with dedicated customer success managers provides immediate assistance across time zones, backed by in-country experts who understand Paraguay's unique employment landscape.
- Direct entity ownership: Full legal-entity model provides complete control over the employment process in Paraguay, ensuring compliance with local employment law, mandatory social contributions, and benefits administration without reliance on third-party partnerships.
- Modern platform experience: Employee self-service capabilities through web and mobile interfaces empower your Paraguay-based team to manage onboarding, review paystubs, submit expenses, and access HR resources independently, reducing administrative overhead while improving employee satisfaction.
Final Thoughts
Choosing the right employer of record provider for Paraguay operations represents a strategic decision impacting compliance risk, operational efficiency, and employee experience. The comparison of eight providers reveals significant variation in pricing, onboarding speed, platform capabilities, and support infrastructure, requiring careful evaluation aligned with your specific hiring timeline, budget parameters, and technology preferences. Data-driven analysis of factors including G2 ratings, compliance expertise, and Paraguay-specific capabilities enables objective provider selection beyond marketing claims. As global hiring continues accelerating, partnering with an EOR offering both technological innovation and deep local expertise positions your organization for sustainable growth throughout Paraguay and broader Latin American markets.
Ready to streamline your Paraguay hiring process? Book a demo to see how the right EOR partner can accelerate your growth.
