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Employees in Bolivia are entitled to paid annual leave, which varies based on their length of service:

• From 1 to 4 completed years of service: 15 working days of vacation per year
• From 5 to 9 completed years of service: 20 working days of vacation per year
• From 10 or more completed years of service: 30 working days of vacation per year

Annual leave cannot be compensated in money, except in the case of employment contract termination. It cannot be accumulated or carried over except by mutual agreement in writing.

In Bolivia, employees are eligible for 26 weeks of paid sick leave annually. Employers must cover 100% of regular pay during this period. However, starting on the 4th day of illness, Social Security reimburses 75% of the employer's costs, provided a medical certificate is submitted within 48 hours of the initial illness. The leave can be extended for another 26 weeks if this avoids a state of disability for the employee.

Female employees in Bolivia are entitled to 90 days of maternity leave, split into 45 days before the expected date of birth and 45 days after delivery. They are entitled to 100% of their salary during these 90 days. Employers can claim reimbursement for 90% of the salary they pay during this period from the Bolivian Social Security system.

Female employees are protected from dismissal during pregnancy and up to 1 year after childbirth. Mothers are granted time off for breastfeeding during working hours, at least 1 hour a day, until the child reaches 12 months of age.

Bolivia grants fathers 3 days of paid paternity leave after the birth of a child. To be eligible for paternity leave, fathers must present to their employer an accredited birth certificate. Legal partners are also eligible for this leave.

Similar to female employees, male employees are also protected from dismissal until the child becomes 1 year old.

Minimum Wage

The General Labor Law of Bolivia prohibits employers from paying their employees less than the statutory minimum wage. The national minimum wage is BOB 3,300 (Bolivian bolivianos) per month beginning January 2, 2026. The minimum wage is determined after a negotiation between the national government and the Bolivian Workers' Central (COB).

Overtime, Holiday & Vacation Pay

Overtime work refers to hours worked beyond the standard workday of 8 hours per day or 48 hours per week for men, or 40 hours per week for women and children. The employer must request from the Labor Inspectorate permission for overtime hours, which cannot exceed 2 hours per day.

The Law requires that overtime work be compensated at a rate of 100% on top of the regular wage, or double the regular hourly rate for each hour worked. This includes working on weekends and public holidays.

Notice Period

The Labor Law historically allowed either party to terminate an indefinite employment relationship with proper notice, which provides for different notice periods for indefinite contracts according to whether it is a worker or an employee (employees often work in an office on a set schedule and special circumstances and primarily perform intellectual work, workers provide material or manual services), and their length of service at the time of termination:

• 1 week’s notice for a worker with 1 month of uninterrupted work
• 15 days' notice for a worker with 6 months of uninterrupted work
• 30 days' notice for a worker with over a year of uninterrupted work
• 30 days’ notice by the employee to the employer
• 90 days’ notice by the employer to the employee after 3 months of uninterrupted work

The Constitutional Court has limited the effect of the notice regime by holding that giving advance notice alone does not make a dismissal lawful if it violates the constitutional right to job stability. As a result, an employer who terminates an employee without legal cause still owes severance and statutory benefits even if notice was given, and any payment in lieu of notice is separate from and does not replace those severance obligations.

Severance Benefits

In Bolivia, employees dismissed unfairly or for reasons beyond their control are entitled to severance benefits. This includes 1 month’s salary for each year of continuance service or its proportional amount for months of service if less than a year within 15 days of dismissal. They are not entitled to severance pay if they are fairly dismissed, dismissed during the probationary period, or voluntarily resign. However, if the employee or worker has more than 8 years of service, they are entitled to receive severance pay even if they resign or retire voluntarily.

In addition to pay, severance benefits include accrued vacation time, bonuses, 13th-month salary or bonus, and social security benefits.

Pension

Bolivia established a comprehensive pension system in 2010, designed to provide retirement benefits to a wide range of its citizens. This system is comprised of 3 regimes:

• Contributory Regime: This regime is funded by contributions from both employees and employers. It offers a variety of benefits, including old-age pensions, disability benefits, and survivor benefits. To qualify for old-age benefits, individuals must meet specific age and contribution requirements. The amount of the pension is determined by the individual's accumulated savings and the number of years of contributions.
• Semi-Contributory Regime: This regime is designed to provide additional protection to low-income employees. To be eligible for solidarity benefit, the insured must be at least 58 years of age, and must have paid contributions for at least 120 months, but not long enough to be eligible for long-term social security contributory pension. Benefits under this regime are typically lower than those under the contributory regime.
• Universal Non-Contributory Regime: This regime provides a basic income, known as the Dignity Income, to elderly individuals who do not qualify for benefits under the other two regimes. The amount of pension is BOB 4,550 (Bolivian Boliviano) per year for those who do not receive any other pension, and BOB 3,900 per year for those who receive pension.

Dependents/Survivors Benefits

The Bolivian Comprehensive Pension System provides death benefits to surviving beneficiaries of insured members. First-degree beneficiaries include spouses and children who have priority and receive both life and temporary pensions. Second-degree beneficiaries, like parents and minor siblings, are also eligible for benefits without explicit declaration by the insured. Third-degree beneficiaries, who are freely declared by the insured, can only access the accumulated balance.

In case of death due to common risk, the deceased insured must meet specific age and contribution requirements. The pension amount is calculated based on a percentage of their salary risk reference. For deaths due to occupational risk, the deceased dependent must have been under 65, and the death must occur during or shortly after employment. The pension amount, in this case, is based on 100% of the deceased's salary risk reference. Both types of death benefits include coverage for funeral expenses.

Invalidity Benefits

Insured employees in Bolivia's Comprehensive Pension System are eligible for disability benefits if they become temporarily or permanently disabled resulting from either common risks or occupational risks.

The disability benefit for common risk is granted in the event of partial disability or permanent total disability due to an accident and/or illness not arising from occupational risk. To be eligible for disability benefits, insured employees must meet the following criteria: they must be under 65 years of age, have at least 60 paid contributions to the Distribution System, Mandatory Long-Term Social Security, or Comprehensive Pension System, and experience a disability while premiums are being paid or within a year of their cessation. Additionally, the degree of disability must exceed 50%. The pension amount for the insured is determined based on their disability grade and Risk Salary Reference.

Disability benefits for occupational risks are provided for partial or permanent total disability, provided the insured is under 65, have a disability degree exceeding 10% due to professional causes, and being employed at the time of the occupational accident or within a year of leaving employment in case of occupational disease. The pension or compensation amount is determined by the disability grade and Risk Salary Reference, with 100% pension for 60% or higher disability, a calculated pension for 25-60% disability, and a one-time compensation for 10-25% disability.

Personal Income Tax

Bolivia applies a flat-rate tax system called the Régimen Complementario al Impuesto al Valor Agregado (RC-IVA), which operates as a complementary tax to the Value Added Tax regime. It targets income that is not fully captured by the VAT system, such as income from services or specific types of transactions.

Natural persons and undivided estates are subject to the RC-IVA. All income from Bolivian sources is subject to the tax, regardless of the domicile or residence of the subjects of this tax, who are the holders of such income. Income earned by individuals or businesses from sources outside of Bolivia is not subject to income tax. For tax purposes, natural and legal persons must establish their domicile within the national territory, preferably at the place of their commercial or productive activity. The tax year is the same as the calendar year, running from January 1 to December 31.

The RC-IVA system taxes income from work, interest, rent, and royalties at a flat rate of 13%.

Visas

• Tourist visa - issued to foreign nationals to enter Bolivia for leisure or recreational purposes, for up to 30 days
• Specific purpose visa - issued for various reasons such as work, temporary work, volunteering, academic exchange, religious purposes, health issues, family matters, etc.
• Student visa - it allows foreign students to study in Bolivia for up to 60 days initially, and requires a residence permit after that
• Multiple visa - issued to foreign nationals engaged in investment and business activities, valid for 1 year with a maximum stay of 90 uninterrupted days
• Humanitarian visa - issued for humanitarian reasons like international protection, human trafficking, or accompanying a sick person, valid for up to 30 days
• Courtesy visa - issued to high-ranking officials, international organization members, cultural and religious figures, upon invitation from a Bolivian public institution
• Transit Visa - issued for foreign citizens transiting through Bolivia, valid for up to 15 days

Work Permits

Foreign nationals seeking employment in Bolivia must first obtain a Specific Purpose Visa. This requires submitting a Visa Application Affidavit Form, a valid passport, a document certifying their intended activity, an invitation letter, a police clearance certificate, proof of financial solvency, a yellow fever vaccination certificate, and a recent photograph. Upon receiving the visa, individuals can enter Bolivia and apply for a residence permit.

To apply for a residence permit, employees must provide a photocopy of the employer's identity card, a power of attorney, a copy of the employer's registry and tax ID, payroll declarations, 3 copies of the employment contract, a copy of their foreign ID or work visa, and an immigration status resolution. Work permits in Bolivia are valid for up to 2 years, and companies must hire a maximum of 15% foreign employees, who must be skilled workers.

The minimum age of employment in Bolivia is 14. However, minors under 14 can be employed as apprentices, and in exceptional circumstances, the Ombudsman’s Offices for Children and Adolescents may authorize self-employment of children between the ages of 10 and 14 and the employment of adolescents between 12 and 14, provided that such employment does not undermine the child’s right to education, is not dangerous, unhealthy, or adversely affects the child’s dignity and integral development. Children between 10 and 12 can work in independent jobs, whereas those above 12 can work in contracted jobs. Minors under 14 can only be employed after a socioeconomic assessment and authorization by the Ombudsman’s office within 72 hours of receiving a request for it.

Adolescents between the ages of 14 and 18 cannot be hired for work beyond their physical strength or that which may retard their physical development. They are prohibited from working in dangerous, unhealthy, or heavy labor and in occupations that might be detrimental to their morality. Minors can only work during the day and not more than 40 hours a week.