Countries › Paraguay › Guide › 7. Labor and employment › Labor inspections, fines and claims in Paraguay: fines in minimum daily wages, the 48 hour discount and the 60 day and one year deadlines

Labor inspections, fines and claims in Paraguay: fines in minimum daily wages, the 48 hour discount and the 60 day and one year deadlines

Last verified: 2026-10-28 · Status: Stable

Labor fines are set in minimum daily wages (jornales) of PYG 117,077 each from 1 July 2026, usually per worker affected and doubled for repeat offences: 10 to 30 jornales for general breaches, 30 for underpaying the minimum wage, 50 for maternity breaches and up to 100 under the maternity law. The labor ministry imposes them summarily after hearing the employer, appeals go to the Labor Court of Appeal within three days, and paying within 48 hours halves the fine. Workers must sue within 60 days for dismissal indemnity or notice pay and within one year for most other claims, while employers lose a just cause after 30 days.

USD figures use PYG 5,868.31 per US dollar, the Banco Central del Paraguay reference quotation in the planilla for Wednesday 28 October 2026. Conversions are for orientation only.

Key facts

Minimum daily wage used as the fine unit, from 1 July 2026	117077 PYGCódigo del Trabajo art. 384; Res. MTESS 670/2026 art. 1, as of 2026-07-01 · in force
General labor fine, minimum per worker	10 jornalesCódigo del Trabajo art. 385 (Ley 496/1995), as of 2026-10-28 · in force
General labor fine, maximum per worker	30 jornalesCódigo del Trabajo art. 385 (Ley 496/1995), as of 2026-10-28 · in force
Fine for paying below the minimum wage, per worker	30 jornalesCódigo del Trabajo art. 390, as of 2026-10-28 · in force
Multiplier for repeat offences	2 xCódigo del Trabajo art. 385 to 390, as of 2026-10-28 · in force
Discount for paying a fine within 48 hours	50 %Código del Trabajo art. 398 (Ley 496/1995), as of 2026-10-28 · in force
Days to appeal a labor fine	3 daysCódigo del Trabajo art. 398 (Ley 496/1995), as of 2026-10-28 · in force
Deadline to claim dismissal indemnity or notice pay	60 daysCódigo del Trabajo art. 400, as of 2026-10-28 · in force
General prescription of labor claims	1 yearsCódigo del Trabajo art. 399, as of 2026-10-28 · in force

The rule

1. The fine unit. Where the Code speaks of minimum daily wages (jornales mínimos) for fines, it means the minimum daily wage for unspecified activities in the capital. From 1 July 2026 that is PYG 117,077 under Decreto Nº 6225/2026 and Res. MTESS Nº 670/2026. Fines apply without prejudice to the indemnities and payments the Code requires.
Cost to do it: 1 jornal = PYG 117,077 (US$20).
Example: A 30 jornal fine is PYG 3,512,310. / About US$599.Ley Nº 213/1993 Código del Trabajo art. 384; Resolución MTESS Nº 670/2026, Código del Trabajo art. 384; Res. MTESS 670/2026 art. 1, 2026-07-07 official text · verified 2026-10-28

2. General and specific fines. Breaches of the Code with no special penalty, and each breach of an employer's legal obligations towards the labor authority, are fined 10 to 30 jornales per worker affected, doubled on repetition. Specific fines include 10 jornales per worker for imposing hours beyond the legal limits and for denying rest or vacation days, 50 jornales per worker for breaching maternity rest or breastfeeding time, 50 jornales per minor for unlawful child or hazardous work, 30 jornales per worker for paying below the minimum wage, unequal pay or pay in vouchers, 20 to 30 jornales per infraction for safety rules, 30 minimum wages per worker for unfair practices against union stability, 50 jornales for refusing to deal with a registered union or to sign the mandatory collective agreement and 30 jornales per worker for blacklisting. Ley 5508/2015 adds 50 to 100 jornales per worker for maternity, paternity, adoption and breastfeeding breaches.
Cost to do it: From PYG 1,170,770 to PYG 11,707,700 per worker, doubled for repeat offences.
Example: Paying 8 workers below the minimum: 8 x 30 jornales = PYG 28,098,480; PYG 56,196,960 on a repeat. / About US$4,788, or US$9,576 on a repeat.Ley Nº 213/1993 Código del Trabajo, as amended by Ley Nº 496/1995, Art. 385, 386, 388 and 389 (as amended by Ley 496/1995 art. 1), 387, 390, 391, 393, 394 and 395; Ley 5508/2015 art. 19 (Ley 6453/2019), 1995-08-22 official text · verified 2026-10-28

3. Procedure and the 50 percent discount. The competent labor authority imposes fines summarily after hearing the offender and weighing the evidence. Its decision may be appealed to the Labor Court of Appeal by simply filing the appeal with the authority within three days of notification. If the offender accepts the fine and pays within 48 hours, it is reduced by 50 percent.
Cost to do it: Half the fine if paid within 48 hours.
Example: A PYG 28,098,480 fine paid within 48 hours costs PYG 14,049,240. / About US$2,394 instead of US$4,788.Ley Nº 213/1993 Código del Trabajo, as amended by Ley Nº 496/1995, Art. 398 (as amended by Ley 496/1995 art. 1), 1995-08-22 official text · verified 2026-10-28

4. Wage arrears orders and worker complaints. An underpaid worker may claim the difference up to the minimum wage, and the labor authority sets summarily a payment period of no more than 30 days. Workers not registered with IPS may report it to IPS or to MTESS; inspectors verify on site and, if confirmed, register the worker ex officio.
Cost to do it: Arrears plus fines; back IPS contributions for unregistered workers.
Example: An MTESS inspection after a complaint can order payment of minimum wage arrears within 30 days. / Same.Ley Nº 213/1993 Código del Trabajo; MTESS social security guide, Código del Trabajo art. 259; MTESS guide section 2.6, 1993-06-29 official text · verified 2026-10-28

5. Claim deadlines. Actions under the Code or under individual or collective contracts prescribe one year after they arise, except: within 60 days, actions to annul a contract for error or duress, to end a contract for legal causes, to claim notice pay (from the dismissal) and to claim dismissal indemnity or damages for unjustified resignation (from the separation). An employer that does not use a just cause within 30 days of learning of it loses the right. Under the domestic work law, a complaint to the labor authority or a lawsuit interrupts prescription.
Cost to do it: Missed deadlines extinguish the claim.
Example: A worker dismissed on 31 October 2026 must sue for indemnity and notice by about 30 December 2026; an overtime claim can be filed within a year. / Same.Ley Nº 213/1993 Código del Trabajo, Art. 399, 400 and 401; Ley 5407/2015 art. 22, 1993-06-29 official text · verified 2026-10-28

Breach	Jornales	Basis	PYG	USD	Article
General breach without a specific penalty	10 to 30	per worker	1,170,770 to 3,512,310	200 to 599	385
Breach of obligations towards the labor authority	10 to 30	per worker	1,170,770 to 3,512,310	200 to 599	385
Hours beyond legal limits	10	per worker	1,170,770	200	386
Denying rest days or vacation	10	per worker	1,170,770	200	387
Breaching maternity rest or breastfeeding time	50	per worker	5,853,850	998	388
Maternity, paternity, adoption, breastfeeding rules (Ley 5508/2015)	50 to 100	per worker	5,853,850 to 11,707,700	998 to 1,995	Ley 5508 art. 19
Minors in unhealthy or dangerous work, or children under 12	50	per minor	5,853,850	998	389
Pay below the minimum, unequal pay or pay in vouchers	30	per worker	3,512,310	599	390
Safety and machinery rules	20 to 30	per infraction	2,341,540 to 3,512,310	399 to 599	391
Refusing to recognize a union or sign the mandatory collective agreement	50	per case	5,853,850	998	394
Blacklisting workers	30	per worker	3,512,310	599	395

Labor fines in jornales and their value from 1 July 2026 (Código del Trabajo art. 385 to 395 as amended by Ley 496/1995; Ley 5508/2015 art. 19; jornal PYG 117,077; USD at PYG 5,868.31; doubled on repetition)

Worked example

An MTESS inspection at a Paraguayan call center finds that 15 agents were made to work beyond the 57 hour weekly cap and that 4 of them were paid below the minimum wage.
Fines: 15 x 10 jornales for excess hours = PYG 17,561,550, and 4 x 30 jornales for underpayment = PYG 14,049,240, total PYG 31,610,790 (US$5,387), plus the overtime and wage arrears (Código del Trabajo art. 386 and 390).
The company accepts and pays within 48 hours: the fine falls by half to PYG 15,805,395 (US$2,693) (art. 398).
A repeat finding at the next inspection would double the fines.

Step by step

Keep the wage book, vacation register, hour postings and pay slips ready for inspection (art. 206, 226 and 235).
On an inspection report, review it at the hearing and decide quickly whether to contest or pay within 48 hours for the 50 percent discount (art. 398).
Appeal within three days of notification if contesting (art. 398).
Diary the 30 day just cause window and the 60 day and one year claim deadlines (art. 399 to 401).

Common traps

Most fines are per worker, so one payroll policy error across a workforce multiplies the bill.
The 48 hour discount window is very short; delegate authority to pay in advance.
Union stability fines are in minimum wages, not jornales, in the Code's wording (art. 393).
The DNIT copy of the Code shows 1993 fine amounts for art. 385, 386, 388 and 389; Ley 496/1995 rewrote them.

Sources

← Outsourcing, contractors and labor intermediaries in Paraguay: when the client is the employerPart time work, telework and domestic work in Paraguay: the special regimes →

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