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Bolivia has employer Caja de Salud (~10%) + housing fund (2%), mandatory aguinaldo (13th month by December 18) with potential double aguinaldo, RC-IVA flat income tax (13%), and one of LATAM's most protective labor codes. Rippling handles AFP, SIN, and Bolivia Labour Law compliance.
Bolivia is a landlocked South American economy with significant natural resources (lithium, gas) and a growing formal sector. La Paz is the administrative capital and primary business hub; Santa Cruz is the commercial capital and growing tech center. Bolivia has one of Latin America's most worker-protective labor codes. Bolivia uses the Boliviano (BOB).
| Contribution | Rate | Notes |
|---|---|---|
| Caja de Salud | ~10% | Health insurance; rate varies by Caja de Salud fund |
| Housing fund (FONVIS/PROViVienda) | 2% | Mandatory housing fund contribution |
| Solidarity contribution (Renta Solidaria) | 3% | On salaries above BOB 13,000/month |
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| Contribution | Rate | Notes |
|---|---|---|
| AFP (employee pension) | 10% | To individual pension account; employer does not contribute to AFP |
| Risk premium (AFP) | 1.71% | Insurance for disability and death |
| Income tax (RC-IVA) | 13% | Flat rate; employee can offset against consumption VAT credits |
| Taxable Income | Rate |
|---|---|
| All salary income | 13% flat (RC-IVA) |
Employee offsets RC-IVA against VAT credits from consumption facturas. Net RC-IVA withheld by employer; remitted monthly to SIN.
Indemnización: 1 month's salary per year of service (any termination after 3 months). Notice: 90 days (3+ months). Double aguinaldo triggered if GDP > 4.5%. Bolivia Labour Law is highly employee-protective.
Bolivia's income tax (RC-IVA — Régimen Complementario al IVA) is a flat 13% on gross salary, applied monthly. However, employees can offset RC-IVA against VAT credits from consumption invoices (facturas) they collect. If an employee collects enough facturas each month, their RC-IVA liability can be reduced to zero. Employers withhold and remit RC-IVA after applying the employee's factura credits.
Bolivia's aguinaldo (13th month salary) is mandatory and paid by December 18 each year, equal to 1 month's salary. Additionally, when Bolivia's GDP growth exceeds 4.5% in a year, a double aguinaldo (Aguinaldo Esfuerzo por Bolivia) is triggered — a second bonus of 1 month's salary paid by December 31. Budget for the possibility of a second aguinaldo.
Bolivia's minimum wage is BOB 2,362/month (2024), one of the lower minimums in Latin America in USD terms. However, Bolivia's AFP pension system requires employee contributions of 10% + 1.71%, making total employee deductions relatively high.
Notice: 90 days (employees with 3+ months). Severance (indemnización): 1 month's salary per year of service, paid on any termination (including resignation with 3+ months' service). Bolivia has one of the most employee-protective labor codes in Latin America — indemnización applies regardless of reason for termination.
