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Educational Resource

The Paraguayan Payslip Guide

A plain-language explanation of every line you'll find on a standard Paraguayan recibo de sueldo — written for first-time formal workers.

Educational note: This guide is for informational purposes only. It does not constitute legal or financial advice. For specific situations, consult a licensed labor attorney or qualified professional.

Close-up of a person carefully reading and annotating a printed payslip document at a desk with a pen in hand
Why This Guide Exists

Your payslip is a legal document. You should understand it.

Every month, formal workers in Paraguay receive a recibo de sueldo — a document that records what they earned, what was deducted, and what they received. It's a legal record of the employment relationship.

Yet most first-time workers have never been taught to read one. Schools don't cover it. Employers rarely explain it. And the document itself uses official abbreviations and codes that assume prior knowledge.

This guide walks through each section and line of a standard Paraguayan payslip. It explains what each item is, how it's calculated, and why it appears. It is educational — not a substitute for professional advice.

The Payslip Sections

Understanding each part of your payslip

Section 1: The Header Information

The top of your payslip identifies the employer, the worker, and the pay period. This information should match your employment contract exactly.

Razón Social / Empleador

The legal name of the company or employer. This should match what's on your contract.

RUC del Empleador

The employer's tax registration number. Confirms the company is formally registered.

Nombre del Trabajador

Your full legal name. Check this matches your ID document exactly.

Período Liquidado

The pay period — usually a calendar month. Confirms which month's work this slip covers.

Section 2: Earnings (Haberes)

These are the positive items — what you've earned or accrued during the pay period.

Salario Base Positive item

Your agreed monthly salary before any deductions. This is the figure in your employment contract. For most workers, this is at or above the Salario Mínimo (minimum wage) established by Paraguayan law and reviewed periodically.

Aguinaldo Prorrateado Positive item

One-twelfth of your annual bonus (aguinaldo), shown as an accrual each month. The aguinaldo is a mandatory annual bonus equal to one month's salary, paid in December. Showing it monthly helps you track what you've accrued. It is not a deduction — it is an accrual of money you will receive.

Vacaciones Acumuladas Positive item

The monetary value of vacation days accrued during the period. Under Paraguayan labor law, workers accrue vacation days based on years of service — starting at 12 days per year for the first five years. This line shows the monetary equivalent of days accrued this month.

Section 3: Deductions (Descuentos)

These are amounts subtracted from your gross salary. Understanding each one helps you verify your payslip is correct.

Aporte IPS (9%) Deduction

Your contribution to the Instituto de Previsión Social (IPS) — Paraguay's social security system. The worker contributes 9% of their gross salary. Your employer contributes an additional 14% on top of your salary (this does not come from your pay). In return, you receive access to IPS healthcare facilities and begin building toward a future pension. This is a legal requirement for all formal workers.

Impuesto a la Renta Personal (IRP) Deduction (if applicable)

Paraguay's personal income tax. This only applies to workers whose annual income exceeds the legal threshold established in the tax code. Many first-time workers earning at or near the minimum wage will see Gs. 0 on this line, meaning the tax does not apply to their income level. If it does apply, the rate structure is progressive — consult the current DNIT (Dirección Nacional de Ingresos Tributarios) guidelines for current thresholds.

Otros Descuentos Varies

Other deductions that may appear include authorized salary advances (anticipos), union dues (cuotas sindicales) if you belong to a union, or court-ordered garnishments. Any deduction other than IPS and IRP should be explained to you by your employer and should have a legal basis. If you see an unexplained deduction, you have the right to ask for clarification.

Section 4: Net Pay (Salario Neto)

This is the amount you actually receive — your gross salary plus positive accruals, minus all deductions. It should match what appears in your bank account or what you receive in cash.

Formula: Salario Base + Aguinaldo Prorrateado + Vacaciones Acumuladas + Other Earnings − IPS (9%) − IRP (if applicable) − Other Deductions = Salario Neto a Cobrar

Section 5: Basic Labor Rights Every Worker Should Know

Beyond the payslip itself, there are foundational labor rights that apply from your first day of formal employment in Paraguay.

Right to a Written Payslip

Your employer is legally required to provide you with a written payslip (recibo de sueldo) for every pay period. You should sign it to acknowledge receipt, but keep a copy for your records.

Right to IPS Registration

From your first day of formal employment, your employer is required to register you with IPS. You can verify your registration through the IPS website or offices. If you're working formally but not registered with IPS, this is a situation to address — consult a labor authority or attorney.

Right to Minimum Wage

No formal worker in Paraguay can legally be paid below the Salario Mínimo (minimum wage), which is reviewed and updated periodically by the government. Your Salario Base should be at or above this figure.

When to Seek Professional Help

This guide is educational. If you believe your payslip contains errors, if you are not registered with IPS, or if you have a dispute with your employer, the appropriate next step is to consult a licensed labor attorney (abogado laboralista) or contact the Ministerio de Trabajo, Empleo y Seguridad Social (MTESS).

Want to go deeper?

Join a workshop session

This guide covers the concepts. Our workshop lets you work through your actual payslip with a group and ask every question you have.

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Bring your family

Family members welcome

Parents and siblings can attend alongside first-time workers. Understanding the system benefits the whole household.

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