Bolivia Severance Calculator 2026
Last updated: January 2026
The labor settlement (liquidación) in Bolivia for 2026 is calculated according to the General Labor Law in bolivianos. Components include: desahucio (3 months' salary for unjust dismissal), indemnización (1 month per year of service, no cap), proportional aguinaldo, proportional vacation (15 business days/year), and proportional quinquenio. The daily salary is monthly salary ÷ 30. Bolivia's desahucio of 3 months is unique — it is a fixed penalty for unjust dismissal, separate from the per-year indemnización. In case of voluntary resignation after 5+ years, the worker receives indemnización but not desahucio. Vacation is 15 business days for 1-5 years, 20 days for 5-10 years, and 30 days for 10+ years.
FAQ
What does a labor settlement include in Bolivia?
A settlement includes: desahucio (3 months, dismissal only), indemnización (1 month/year, no cap), proportional aguinaldo, proportional vacation (15-30 days by tenure), and proportional quinquenio. Voluntary resignation after 5+ years still earns indemnización.
What is the desahucio in Bolivia?
The desahucio is a fixed 3 months of salary paid for unjust dismissal, separate from indemnización. It functions as a penalty for the employer who terminates without just cause. It does not depend on years of service — it is always 3 months.
How is indemnización calculated in Bolivia?
Indemnización equals 1 month of salary per year of service with no maximum cap. Partial years are proportional. Uniquely in Bolivia, workers who resign voluntarily after 5+ years also receive indemnización (but not desahucio).
How many vacation days are in the settlement?
Bolivia vacation by tenure: 15 business days for 1-5 years, 20 days for 5-10 years, and 30 days for 10+ years. Unused vacation is paid proportionally in the settlement. Vacation rights begin after 1 year of service.
Is the settlement taxable in Bolivia?
Desahucio and indemnización are exempt from RC-IVA and AFP contributions. Proportional aguinaldo is also exempt. Proportional vacation and quinquenio are subject to normal tax treatment. The settlement is calculated on the average salary of the last 3 months.