Payroll in Bolivia
Get your Bolivian payroll's employer contributions, aguinaldo, and severance calculation right, so a resignation never catches you off guard on indemnización owed.
Aguinaldo Deadline
December 20
Tax ID
NIT
Primary Registry
Gestora Pública
Payroll in Bolivia: What You Need to Know
Employer contribution burden runs roughly 16.71% of gross salary, covering riesgo profesional at 1.71%, pro-vivienda at 2%, Aporte Patronal Solidario at 3%, and the employer's Caja de Salud contribution at 10%, distinct from the larger 12.71% employee-side deduction. Pension has been administered since May 2023 by the state Gestora Pública de la Seguridad Social de Largo Plazo, replacing the former private AFP system, with APS as the regulator. Aguinaldo, one month's salary, is paid by December 20, plus a contingent segundo aguinaldo triggered only when annual GDP growth exceeds 4.5%, not expected for 2025 or 2026 given current growth projections. Vacation scales by seniority, 15 days after 1 to 4 years, 20 days after 5 to 9 years, and 30 days after 10 or more years of service. Severance, one month's salary per year of service, uncapped and prorated, is payable after 90 days of continuous employment for any termination, including voluntary resignation, a distinctive feature of Bolivian labor law. RC-IVA is withheld at 13% on gross salary after the Gestora deduction and a minimum-wage-linked exemption, functioning as a credit system offset by VAT invoices the employee submits to the employer.
Key Requirements
Employer contribution burden of roughly 16.71% of gross salary, covering riesgo profesional at 1.71%, pro-vivienda at 2%, Aporte Patronal Solidario at 3%, and the employer's Caja de Salud contribution at 10%
Pension administered since May 2023 by the state Gestora Pública de la Seguridad Social de Largo Plazo, replacing the former private AFP system, with APS as the regulator
Aguinaldo, one month's salary, paid by December 20, plus a contingent segundo aguinaldo triggered only when annual GDP growth exceeds 4.5%
Vacation scaled by seniority, 15 days after 1 to 4 years, 20 days after 5 to 9 years, and 30 days after 10 or more years of service
Severance, one month's salary per year of service, uncapped and prorated, payable after 90 days of continuous employment for any termination, including voluntary resignation
RC-IVA withheld at 13% on gross salary after the Gestora deduction and a minimum-wage-linked exemption, functioning as a credit system offset by VAT invoices
Common Challenges
Severance can be owed even when the employee resigns
Most LATAM countries reserve severance for employer-initiated termination. Bolivia's indemnización applies after 90 days of continuous service for any termination, voluntary resignation included, a real difference that changes attrition cost modeling.
AFP is outdated terminology that signals a stale source
Payroll content or vendors still referencing AFP contributions haven't caught up with the 2023 transition to the state Gestora Pública, and using the old terminology reads as inaccurate to Bolivian counsel.
The double aguinaldo is a live contingent liability, not a rumor
It has triggered in 2013, 2014, 2015, and 2018, so foreign employers should monitor the October/November INE GDP announcement every year rather than assume it never applies, even in years it doesn't end up triggering.
How NavviPal Helps
Employer contribution calculation across riesgo profesional, pro-vivienda, Aporte Patronal Solidario, and the Gestora Pública's Caja de Salud contribution
Aguinaldo processing by December 20, with GDP-growth monitoring each year for the contingent segundo aguinaldo
Severance calculation applied consistently regardless of whether a termination is employer-initiated or a resignation past the 90-day threshold
RC-IVA withholding and VAT-invoice credit processing, kept current against each employee's submitted facturas
More on Bolivia
Explore related services and topics for Bolivia.
Ready to manage Payroll in Bolivia?
NavviPal handles every step so you can focus on building your business, not navigating bureaucracy.