Data Sources
2
ILO / WB / OECD coverage
🇵🇾 Americas
Paraguay
Paraguay scores 2.02/6.0 on the OECD employment-protection strictness index.
B-READY 2025 OECD EPL
2.02 OECD EPL strictness (0–6)
Paraguay scores 2.02/6.0 on the OECD employment-protection index - above the OECD average of about 2.0. Data is compiled from 2 official sources (World Bank B-READY 2025, OECD EPL), covering statutory notice periods, severance pay, and dismissal procedures.
Paraguay - the verdict
Paraguay scores 2.02/6.0 on the OECD employment-protection index - above the OECD average of about 2.0.
- 2.02/6
- OECD EPL strictness
- 59.6/100
- B-READY labor quality
Sources: World Bank B-READY 2025 · OECD EPL. Higher = stronger statutory protection.
Paraguay carries moderate employment protection scores across the 2 international datasets we track (Americas). The OECD EPL overall index is 2.02/6.0, ranking #47 of OECD-covered countries. B-READY 2025 labor regulation quality is 59.6/100.
What the Data Shows for Paraguay
Americas. Covered by 2/3 tracked datasets. B-READY 2025 labor score: 59.6/100, moderate. The OECD EPL overall strictness index is 2.02/6.0, where higher values indicate stricter rules on individual and collective dismissal.
Dismissal process: fast, ~0.0 weeks. No 3rd-party approval required for individual dismissal.
Formal labor dispute resolution is notably slow, averaging 6.6 months from filing to outcome. A moderate share of firms, 3.6% in the World Bank's survey, report experiencing a labor dispute. Employer social contributions run to a moderate 10.7% of salary on top of wages. Historically, Paraguay's OECD EPL score moved from 2.02 in 2014 to 2.02 in 2019, showing the direction of reform over time. 6 peer comparisons below.
How to read the three measurement scales
These figures draw on three different measurement traditions, so read each one on its own terms before comparing across countries. The ILO EPLex composite condenses statutory termination rules into a single index from zero to one, where higher numbers mean stronger legal protection against dismissal. The World Bank Business Ready 2025 labor score runs from zero to one hundred and blends the quality of regulation with how well public services and dispute processes actually work in practice. The OECD employment protection index uses a zero to six scale and only covers member economies, but it offers the longest historical series, which makes it the better choice for tracking reform over time. A country can score strictly on paper yet still process dismissals quickly, so always weigh the statutory index against the practical estimates. Where a country appears in fewer than all three datasets, treat the missing measures as not yet collected rather than as a sign of weak protection, and revisit this page when new releases are published because indicators can shift year over year.
Region
Americas
Geographic grouping
Latest Year
2025
Most recent indicator update
ILO EPLex
-
No data available
B-READY 2025
59.6
out of 100 · Rank #80
OECD EPL
2.02
out of 6.0 · Rank #47
B-READY 2025
Labor Regulation Quality
Regulation Quality
67.6
out of 100
Public Services
66.7
out of 100
Efficiency
44.4
out of 100
Notice Required
Yes
Severance Required
Yes
Weeks to Dismiss
0.0
Weeks Severance
1.8
Firms in Disputes
3.6%
Months to Resolve
6.6
Social Contributions
10.7%
3rd Party for Dismissal
Not required
Source: World Bank Business Ready 2025 World Bank Business Ready 2025 Pillar scores are 0-100 (higher = better regulation quality)
OECD EPL
Historical Protection Score
| Year | Overall Score | Visual |
|---|---|---|
| 2014 | 2.02 | |
| 2015 | 2.02 | |
| 2016 | 2.02 | |
| 2017 | 2.02 | |
| 2018 | 2.02 | |
| 2019 | 2.02 | |
Scale: 0-6 (higher = more protective). Source: OECD Employment Protection Legislation database.
Compare Paraguay With...
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Frequently Asked Questions
What are the employment protections in Paraguay?
World Bank B-READY labor regulation quality: 59.6/100; OECD EPL overall: 2.02/6.0. (2 sources.)
How does Paraguay compare to the OECD average?
OECD EPL 2.02/6.0 (below the ~2.3 average).
What notice period and severance pay does Paraguay require?
notice mandated; severance mandated.
What data sources cover Paraguay's employment laws?
2 sources: World Bank B-READY 2025; OECD EPL.
How strict are dismissal protections in Paraguay?
3rd-party approval not required; dismissal ~0.0 weeks.
How does Paraguay handle labor disputes?
disputes resolve in ~6.6mo; 3.6% of firms report one; social contributions 10.7% of salary.
What to do with this
Use Paraguay's scores as a comparison benchmark, not legal advice.
- See where Paraguay lands among all rated countries on each protection index. View the rankings
- The three indices measure different things on different scales, compare Paraguay side by side with another country before drawing a conclusion. Compare Paraguay
- Read Paraguay against its regional peers, the Americas averages reveal the structural pattern. Americas overview
These indices reflect the law as written, not how it is enforced, recent amendments, or the facts of any individual case. For a real decision, confirm the current statute and consult a qualified employment lawyer, see our disclaimer.
Related
Data sourced from official OECD, ILO, and World Bank employment-protection datasets. See our methodology for details. Retrieved and formatted by PlainEmploy Editorial
Disclaimer: This information is provided for informational purposes only and does not constitute professional advice. Data is sourced from OECD, ILO, and World Bank labor market databases. Consult a qualified professional before making decisions based on this data.
Read our methodology - how this data is sourced, computed, and verified.
Primary sources: ILO EPLex, World Bank B-READY, OECD EPL.
PlainEmploy is rendered directly from the OECD Employment Protection Legislation indicators, the ILO EPLex database, and the World Bank B-READY labor pillar, no number is typed in by an editor. This country's composite scores and comparisons are computed directly from the underlying OECD/EPLex/B-READY tables, no figure is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of 2026-07-06.