Paraguay Net Salary Calculator 2026
Last updated: January 2026
Net salary in Paraguay for 2026 is calculated by deducting IPS from gross salary, in guaraníes (₲). The employee's IPS contribution is 9%. The employer contributes 16.5%. IRP (income tax) applies only above ₲80,000,000 annually, meaning most workers pay zero income tax. With a gross salary of ₲5,000,000/month, the IPS deduction is ₲450,000, and since annual income (₲60,000,000) is below the IRP exemption, net salary is ₲4,550,000. Paraguay's minimum wage is ₲2,798,309/month. Paraguay has one of the simplest payroll structures in Latin America — for most workers, IPS (9%) is the only deduction.
FAQ
How much is deducted for IPS in Paraguay?
The employee's IPS contribution is 9% of gross salary. The employer contributes 16.5%. On a ₲3,000,000 salary, the IPS deduction is ₲270,000/month. IPS covers health insurance, pensions, and workplace accident insurance.
Do I pay income tax on my salary in Paraguay?
Most Paraguayan workers pay zero income tax. The IRP exemption is ₲80,000,000/year (about ₲6,666,667/month). Only workers earning above this threshold pay IRP at 8-10%. Paraguay has one of the highest income tax exemptions in Latin America.
What is the minimum wage in Paraguay 2026?
Paraguay's national minimum wage is ₲2,798,309/month for 2026 (approximately $370 USD). This is the same across all sectors — Paraguay does not differentiate minimum wage by industry. Domestic workers have a minimum of 60% of this amount.
Are there any other deductions besides IPS?
For most workers, IPS (9%) is the only mandatory payroll deduction. IRP only applies above ₲80,000,000/year. Some workers may have judicial garnishments, union dues, or voluntary savings deductions with written consent.
How much does the employer pay in Paraguay?
Employer contributions total 16.5% of salary, all going to IPS. On a ₲3,000,000 salary, the employer pays ₲495,000 in additional contributions. This is one of the lower employer burdens in Latin America.