Hiring a domestic worker in Paraguay: legal framework, salary and contract
In Paraguay, employing domestic help, an empleada doméstica, is a common practice in middle-class households, not just among expatriates. Many French people arrive feeling uncomfortable with the idea of employing someone in their home, and this discomfort deserves to be taken seriously rather than dismissed as "cultural." The right response is not to downplay it, but to view this employment for what it is—a salaried job governed by law—and to treat it with the same rigor you would apply to any employment contract: compliant remuneration, social security declaration, written contract, respected hours, and paid leave. Under these conditions, there is nothing objectionable about employing someone; without these conditions, the discomfort is justified.
This is even more important because domestic work has historically been a precarious sector in Paraguay, and legislation has evolved significantly. A foreign employer who is poorly informed may, in good faith, find themselves in violation of the law and underpaying an employee by mistakenly believing they are applying the rules. This guide outlines the current legal framework, concrete obligations, and practices that ensure a smooth and lasting employment relationship.
Two caveats. First, regulations and amounts change every year: this text provides the framework, not the up-to-the-minute figures. Verify the current minimum wage and contribution rates with the Ministry of Labor and IPS, or seek assistance. Second, this article does not replace legal or accounting advice: our DNIT accounting service (€30/month) specifically covers this type of process.
The Legal Framework
Applicable Texts
| Aspect | Detail |
|---|---|
| The Texts | Domestic work is governed by a specific law, Law 5407/2015 "Del Trabajo Doméstico", supplemented by the Labor Code for anything it does not cover. Two texts from 2019 significantly amended it: Law 6338/2019, which aligned remuneration with general law, and Law 6339/2019, which regulates part-time work and applies, in particular, to domestic work paid by the hour. Paraguay has also ratified ILO Convention 189 on domestic workers. The Ministry of Labor publishes an information brochure on this regime: this is the reference to consult, and you can provide it to the person you employ. |
| Who is concerned | The definition is broad and covers all jobs performed in a private home: cleaning, cooking, laundry and ironing, childcare, care for the elderly or sick, dependent gardening, family driving, guarding, errands. The regime applies regardless of the number of days worked, from one day a week to full-time. |
| Minimum age | This is a point on which it is important to be perfectly clear. The legal minimum age for domestic work is 18 years old. The placement of children in homes in exchange for lodging, food, or alleged schooling, a practice known locally as criadazgo, constitutes a form of exploitation and not a family arrangement, no matter how it is presented to you. Never employ a minor in your home, in any form or under any pretext, and if such a situation is proposed to you or reported in your circle, direct it to child protection authorities. There is no grey area on this subject. |
| The two modalities |
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Salary: The Essential Correction
| Aspect | Detail |
|---|---|
| The legal minimum wage | This is the point on which the most outdated information circulates, including in guides for expatriates. For a long time, domestic work was remunerated at a reduced percentage of the national minimum wage, first 40%, then 60%. This regime has been repealed. Since Law 6338/2019, domestic workers are covered by the general legal minimum wage, at 100%, for a full working day. If you are advised to pay 60% of the minimum, the information is six years out of date and would expose you to a claim for back pay. |
| Part-time work | For part-time or daily work, remuneration is calculated pro rata to the legal working hours, based on the minimum wage. In other words, a half-time job entitles the worker to half of the monthly minimum, and not a freely set amount. The law expressly prohibits remuneration proportionally lower than the minimum. The Ministry of Labor publishes the daily and hourly equivalents of the minimum wage: this is the reference calculation for a person who comes two or three days a week. |
| The real market | In practice, observed remunerations are often above the legal minimum, particularly for experienced and recommended individuals, and expatriate employers generally pay more. This is a good thing and it is not generosity: it is the price of skill, experience, and loyalty. Inquire about the levels practiced in your neighborhood before proposing an amount, but remember that the legal minimum is an absolute floor, never a goal. |
| Increases | Overtime, night work, as well as work on Sundays and public holidays, are subject to increases provided for by the Labor Code. These apply to domestic work. Keep a simple record of hours worked, even in the form of timestamped messages: this is good employer practice, useful to both parties. |
| Payment | Cash payment remains frequent due to lack of bank accounts. However, prioritize bank transfers or mobile wallet payments when possible: the record is automatic and protects everyone. For cash payments, systematically issue a dated receipt, stating the period and amount, signed by both parties, and keep a copy each. Also, provide a statement indicating gross pay, contribution deduction, and net pay: this is the least you can do, and it prevents most misunderstandings. |
Employee Rights
What the law requires
| Right | Detail |
|---|---|
| Rest periods | Weekly rest is mandatory, as is a daily break during the workday, longer for live-in staff than for those who return home. These break times are not working time and cannot be made up. For live-in staff, this means ensuring that rest is effective: an employee present at home is not an available employee. |
| Paid leave | Entitlement to paid leave begins after one year of continuous service, and its duration increases with seniority. Leave is paid at the usual salary and dates are set by mutual agreement; in practice, many take it around the end-of-year holidays. Accrued but untaken days are due at the end of the contract. |
| The aguinaldo | The thirteenth month is mandatory and must be paid before the end of December, pro rata to the time worked during the year. It is neither a bonus nor a discretionary gesture: it is an element of salary, and its non-payment is an infraction. It is also, very concretely, the money that families count on for the holidays: do not pay it late. |
| Family benefits | An allowance for dependent children is provided by the Labor Code and also applies to domestic work, under certain conditions. Have this point checked when setting up the contract: it is frequently overlooked. |
| IPS affiliation | This is an obligation, not an option. The employer must declare the employed person to the Instituto de Previsión Social and pay contributions, divided between an employer's share and an employee's share deducted from the salary. The rates applicable to domestic work are now aligned with the general regime; have them confirmed upon registration, as they may change. This affiliation grants the employee access to healthcare, maternity benefits, work accidents, and retirement. It also protects you: without declaration, an accident in your home incurs your personal liability, without limit, and a subsequent dispute results in the recall of contributions, penalties, and indemnities. Registration as an employer of domestic staff is done with the IPS, upon presentation of identification documents for both parties and the contract. |
| Maternity protection | Maternity leave is protected, with a duration set by law and compensation by the IPS subject to prior affiliation and contributions, which is one more argument for declaring from day one. Dismissal of a pregnant employee or one on maternity leave is prohibited. |
| Contract termination | Termination at the employer's initiative, except for serious misconduct, entitles the employee to notice and severance pay calculated according to seniority, as well as payment for accrued leave and pro-rata aguinaldo. These rights accumulate over the years: anticipate them rather than discovering them. In case of serious misconduct, the facts must be established and documented. And if the relationship must end, the manner counts: verbally announced notice, a complete final settlement, a certificate of employment, and a written recommendation make a difference for someone who needs to find new employment. |
The Employment Contract
What it must contain
| Clause | Detail |
|---|---|
| The parties | Full identity, address, and cédula number of the employer and the employee. Written in Spanish, in two signed copies, one for each. Make sure the person has read and understood what they are signing, and take the time to review it together. |
| Tasks | A precise list rather than a vague formula. Cleaning, laundry, ironing, cooking, errands: what is written is what is owed, and what is not is negotiated. Clear tasks protect both sides and prevent the gradual scope creep, which is the primary source of tension. |
| Hours | Specific days and hours, including breaks, with terms for overtime. A simple record of hours worked usefully supplements the contract. |
| Remuneration | Gross amount in guaraníes, periodicity, payment method, and mention of the employee's contribution deduction. The employee must know their gross and net pay. |
| Probationary period | A short probationary period can be stipulated, during which either party can terminate the contract without notice. It is useful and perfectly legitimate, provided it is in writing and of an appropriate duration. |
| Duration | The indefinite-term contract is the rule. This does not prevent ending the relationship, under the notice and severance conditions provided by law. |
Verbal or Written Contract
A significant portion of domestic employment operates on an oral agreement, which has legal value. For a foreign employer, however, a written contract remains the only reasonable option: you are not proficient in the language or customs, and a dispute over conditions that were never formalized is poorly resolved. A written contract is not a defensive measure against the employee; it is a document that formalizes what you have agreed upon and is equally valid for both parties. Templates are available from the Ministry of Labor, and drafting takes half an hour. Have it reviewed by your accountant or an advisor if you have any doubts.
Finding the Right Person
Channels
| Channel | Detail |
|---|---|
| Word-of-mouth | By far the best channel. Building superintendent, neighbors, colleagues, expatriate groups: a person recommended by someone who has employed them is the most reliable filter there is. Expatriates leaving the country often seek to ensure the continued employment of the person who worked for them, and this is a very good starting point. If you take over such a contract, inquire about seniority and accrued rights, which do not disappear because the employer changes. |
| Placement agencies | There are some in Asunción. They pre-select, check references, and generally offer a replacement guarantee, for a one-time fee. It's more expensive but reassuring if you don't have a network. Verify that the agency is in order and, most importantly, that the employment contract binds you directly to the employed person, with declaration to IPS in your name. |
| Ads and social media | The volume is high but there is no filter. If you go this route, systematically check two or three references by calling previous employers. This is time well spent. |
The Interview
Some useful questions, keeping in mind that a job interview focuses on skills and availability, not private life. Questions relating to family situation, health, or pregnancy have no place and are discriminatory: availability is addressed by the proposed hours, not by the candidate's personal life.
| Question | What it provides |
|---|---|
| ¿Tiene experiencia previa? ¿Cuántos años? | Experience is the best indicator of autonomy. An experienced person organizes their work independently; a beginner requires training time, which is perfectly acceptable if you have the availability and if you remunerate it as such. |
| ¿Tiene referencias? ¿Puedo llamarlas? | Actually call them. Punctuality, conscientiousness, autonomy, reasons for leaving: former employers are happy to respond. A complete lack of references is not a deal-breaker for a first job, but a refusal to provide contact information warrants attention. |
| ¿Qué días y horarios le convienen? | Availability should be asked directly. This is also the time to discuss travel time, which affects punctuality, especially on rainy days: a work schedule adapted to transportation is a service rendered to both parties. |
| ¿Sabe cocinar? ¿Qué platos prepara? | To be asked if cooking is part of the job, knowing that the repertoire will primarily be Paraguayan. A different cuisine can be learned, but this requires time and justifies appropriate remuneration. |
| Here are the tasks, hours, and salary offered. Does this suit you? | The most important and most often forgotten question. Announce your conditions clearly during the interview and let the person discuss them. A negotiated agreement holds; a forced agreement falls apart. |
Best Practices
A functioning employment relationship
| Practice | Detail |
|---|---|
| Pay correctly and on the agreed date | This is fundamental and non-negotiable. A market-level salary, paid on the due date, without delays or advances to be recouped later. A late payment creates financial hardship for a household without cash flow, and it destroys trust faster than anything else. |
| Treat the person as a professional | Greet them, say hello and goodbye, offer coffee, share the table rather than creating a de facto hierarchy. This is not a retention technique; it's the normal way to behave with someone who works for you. They have a first name, a last name, and their own life: use them. |
| Provide clear instructions | Expectations regarding organization and method differ from one household to another, and no one is a mind reader. Clearly explain what you want, demonstrate if necessary, and accept that the first few weeks are a period of mutual adjustment. If something is not right, say so simply and early, rather than letting annoyance build up and eventually explode. |
| Provide equipment and ensure safety | Cleaning products, materials, and equipment are the employer's responsibility. Beyond that, some safety points are your responsibility: chemical products correctly labeled and never transferred into beverage bottles, prohibition of mixing bleach and ammoniated detergents, gloves and ventilation, a stable stepladder rather than a chair for reaching high places, and electrical equipment in good condition. An accessible first-aid kit and your emergency numbers displayed complete the picture. |
| Respect family life and holidays | Major holidays and family events are very important here. Grant leave requests kindly and anticipate busy periods on the calendar. A bonus or a thoughtful gesture at Christmas is common practice and well-received, provided it is in addition to legal rights and not a replacement: a gift never compensates for an unpaid aguinaldo. |
| Declare, without exception | A significant portion of domestic jobs in Paraguay remain undeclared. Do not follow this custom. The cost of contributions is modest compared to the salary; it gives the person access to healthcare, maternity benefits, and a pension, and it protects you from potentially serious consequences in case of an accident or dispute. If your employee works for several employers, be aware that the part-time system has specific rules regarding the distribution of contributions: clarify this with your accountant, as this is exactly the kind of situation where professional guidance is justified. |
Frequent mistakes
- Paying below the legal minimum. Often out of ignorance, relying on the old 60% regime or what a neighbor pays. This is an infraction and entitles the employee to a retroactive wage claim. Start with the current legal minimum, prorated if part-time, and build from there.
- Not having a written contract. "We get along well" is not a legal regime. A written agreement protects the relationship, even when it's going very well, because it prevents misunderstandings before they become disputes.
- Not declaring to IPS. This is the most serious risk an employer takes, and it is entirely avoidable at a modest cost.
- Expanding the scope without discussing it. Gradually adding cooking, shopping, ironing, gardening, and then childcare without reviewing hours or remuneration is the surest way to make a competent person leave. If your needs increase, renegotiate or hire a second person.
- Confusing trust with a lack of boundaries. A warm relationship is common and desirable, but it does not replace clear rules. Defined hours, tasks, and remuneration protect both parties and allow the human relationship to exist without ulterior motives.
- Treating caution as distrust, or vice versa. Storing identification papers, bank documents, and valuables in a locked place is normal practice in any household where third parties, including artisans, circulate, and it is not an accusation. Conversely, making unsubstantiated suspicions or searching someone's belongings is unacceptable. In case of a real problem, there is a procedure, which involves dialogue and then legal channels.
The budget
| Configuration | What to budget for |
|---|---|
| Two to three days a week, cleaning and laundry | Salary prorated based on the legal minimum, adjusted for experience, plus employer contributions |
| Full-time, cleaning and cooking | At least the monthly minimum wage, in practice more, plus contributions |
| Childcare | A higher level, as higher responsibility and experience are required |
| Daily gardening | Daily remuneration based on the prorated minimum |
| To budget additionally, all year round | The December aguinaldo, paid leave, any increases, products and materials, and a provision for severance pay, which increases annually |
The total cost remains much lower than that of an equivalent service in France, which is one of the reasons why this practice is so widespread among expatriates. But consider the full cost from the outset: salary, contributions, thirteenth month, holidays, and provision for severance pay. An employer who has only budgeted for the monthly salary will find themselves in difficulty in December or when an employee leaves, and it is the employee who suffers the consequences.
Conclusion
Employing domestic help in Paraguay is simple and perfectly legitimate, provided it is done according to the rules. The framework is clear: a specific law for domestic work, a minimum wage aligned with general labor law since 2019, mandatory social security affiliation, holidays, a thirteenth month, and severance pay.
Five simple steps are enough. Check the current minimum wage and start from there, prorating for part-time work. Declare to IPS from day one, in your interest as much as in the employee's. Write the contract, in Spanish, detailing tasks, hours, and remuneration. Pay on the agreed date, without exception, and provision for the aguinaldo and severance pay. And treat the person who works in your home as the professional they are.
For a newcomer, it is also one of the first social roles they take on in their host country: that of an employer. It is best to perform it correctly. A well-established working relationship often lasts for years, and it is one of the most concrete links an expatriate forms with Paraguayan society.
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