Understanding national employment laws is essential when your company has a global workforce. You must follow the compensation and benefits regulations in each country where you have employees. Some of your responsibilities include paying workers the minimum wage and offering benefits.
In addition to these requirements, many companies offer their employees better compensation and benefits to attract top talent. At Globalization Partners, we maintain your company’s compliance and offer competitive benefits packages for your Bolivian team.
Bolivia Compensation Laws
The Bolivian government changes the minimum wage each year to create a compulsory pay increase. As of May 2021, the minimum wage was 2,164 bolivianos (BOB) per month. Though you can fix a worker’s salary in bolivianos or another currency, you must complete payroll in BOB. Setting an employee’s salary in another currency requires extra caution. Changing exchange rates can create the appearance of a salary reduction.
Employees receive a monthly payroll, which is subject to taxes and contributions. Nationals and international workers must pay taxes on any Bolivian-sourced income.
Employers must provide extra pay for night work, overtime, working on a public holiday, and working on Sunday. Strict caps keep employees from working too much overtime or other extraordinary hours.
Compulsory bonuses include the profit bonus, seniority bonuses, and Christmas bonus. Companies that make a certain profit must pay a second Christmas bonus to all their employees. Christmas bonuses must come from a separate payroll designated for that purpose.
Guaranteed Benefits in Bolivia
Workers are entitled to vacation leave, sick leave, and maternity leave.
The amount of annual paid leave each employee can take depends on the duration of their employment.
Workers can receive sick pay if they show proper documentation from a health care provider. A universal health care system takes the burden of paying for public health care from employees and the companies they work for. If a worker follows the correct process, their employer and social security may reimburse them for private medical care.
Pregnant employees are eligible for 90 days of paid leave and monthly bonuses in the form of nutritional items.
Employers and employees pay into short- and long-term social security entities. Short-term social security payments cover costs during illnesses, injuries, and pregnancy. Long-term social security contributions build the pension fund for workers’ retirement.
Bolivia Benefits Management
Compensation and benefits management can be complex. To handle it yourself, you’ll need a strong, updated understanding of global requirements and expectations. If your operations fall out of compliance, you may experience sanctions or other consequences.
Offload the risk of compliance during your global expansion. Working with a benefits outsourcing company like Globalization Partners lets you focus on growth. We use our software, legal team, HR professionals, and in-country experts to make sure employees receive accurate compensation and the benefits they’re entitled to.
Restrictions for Benefits and Compensation
Employers must keep withholdings from their employees’ paychecks for several funds, including:
- Retirement contributions.
- Common risk insurance.
- Pension funds administrator’s commission.
- Solidarity pensions contribution.
- National solidarity contributions (only for salaries above a certain amount).
Employees can negotiate extra benefits to implement in their employment contract. Sometimes, an employer’s internal regulations determine other benefits or rights, but employees must approve these packages. Some of the most common benefits are extra leave for specific circumstances, housing assistance, and parking. Many of these benefits are included in an employee’s monthly salary, which means they’re subject to withholdings and taxes.
Choose Globalization Partners Today
Keeping your team up to date on international employment regulations is challenging, and those standards can change at any time. Stay compliant and competitive with Globalization Partners.
Contact us today for more information about compensation and benefits outsourcing for your global workforce.