Paraguay has raised its statutory minimum wage. Since 1 July 2026 the monthly minimum wage stands at ₲3,044,000 guaraníes, an increase of 5%. The basis is Executive Decree No. 6225/2026 of 17 June 2026, which follows the recommendation of the National Minimum Wage Council (CONASAM).
At the Banco Central del Paraguay reference rate of ₲5,961.64 per dollar quoted on 3 August 2026, that is about $510 a month. For anyone moving here, the figure is above all a yardstick for local wage and cost-of-living levels.
Update, 6 August 2026: the dollar equivalents in this article have been recalculated. The guaraní has appreciated more than 10% against the dollar during 2026, so the same wage in guaraníes is now worth considerably more in dollars than it was when this article first appeared.
The New Minimum Wage in Paraguay in Detail
The figures come from Decreto No. 6225/2026. The monthly minimum wage for activities not separately regulated rises 5% to ₲3,044,000 guaraníes. The statutory daily wage (jornal mínimo) is ₲117,077 guaraníes, about $20 at the August 2026 rate. The legal basis is Article 255 of Paraguay's Labor Code. On 8 July 2026 the local press also published the new minimum wages broken down by sector.
What the Minimum Wage Was in 2025
The adjustment replaces the values set by Decreto No. 4122 of 27 June 2025. For the twelve months from 1 July 2025, the legal minimum wage was ₲2,899,048 a month with a daily wage of ₲111,502, itself a rise of ₲100,739, or 3.6%, on the ₲2,798,309 that applied before it.
The two years are worth reading together. The 2025 adjustment tracked annual inflation of 3.6%; the 2026 one came in at 5%, ahead of an inflation rate that has since fallen to 1.6%. In guaraní terms, then, the wage floor is currently rising faster than prices.
Why the Minimum Wage Also Affects Government Fees
In Paraguay many official fees are pegged to the minimum wage. When it rises, administrative charges follow automatically. The immigration authority, for example, lifted its rates by around 5% from 1 July 2026. Anyone planning the residency and cédula process should factor this in, because the minimum wage indirectly moves the cost of residency, the cédula, and further documents.
What the Minimum Wage Means for Expats
For expats, the level of the minimum wage is a useful orientation. At roughly $510 a month it sits far below Western levels, which is exactly why services and labor in Paraguay stay cheap. Domestic help, trades and most everyday services are priced in guaraníes at or near this floor, so the wage figure is a reasonable anchor for what local labor costs, as our overview of the cost of living in Paraguay sets out in detail.
One caveat that has grown teeth this year: those prices are guaraní prices. A guaraní roughly 19.7% stronger than a year ago means the same local wage bill converts into noticeably more dollars than it did in 2025. Paraguay is still inexpensive; it is measurably less inexpensive in dollar terms than the older figures circulating online suggest.
The flip side matters too. If you employ someone in Paraguay yourself, whether in your own business or as domestic help, you must pay at least the statutory minimum wage. The moderate 5% rise stays manageable and tracks close to current inflation. On balance, Paraguay remains one of the most affordable countries in the region.
The Aguinaldo: Paraguay's Mandatory 13th Salary
The minimum wage is not the only obligation an employer carries. Every dependent worker in Paraguay, private or public sector, is legally entitled to an aguinaldo, a mandatory 13th-month salary, under Article 243 of the Labor Code. It equals one twelfth of everything the worker earned during the calendar year in salary, overtime, and commissions, so a full year of work adds up to roughly one extra month's pay.
The aguinaldo must be paid in full, without deductions, before 31 December each year, and it is protected from garnishment under Article 245. Employers who skip it face fines of 10 to 30 daily minimum wages per affected worker. Budget for it if you hire domestic help or staff a local company, because it adds roughly 8.3% on top of annual wages.
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Frequently Asked Questions About Paraguay's Minimum Wage
How high is the minimum wage in Paraguay in 2026?
Since 1 July 2026 the monthly minimum wage is ₲3,044,000 guaraníes, about $510 at the August 2026 exchange rate. The statutory daily wage (jornal) is ₲117,077 guaraníes. The values come from Decreto No. 6225/2026 and are the official figures published by the labor ministry, MTESS.
What was Paraguay's minimum wage in 2025?
₲2,899,048 a month, with a daily wage of ₲111,502, set by Decreto No. 4122 of 27 June 2025 and in force from 1 July 2025 until the 2026 adjustment. That was an increase of ₲100,739, or 3.6%, on the previous ₲2,798,309.
By how much did the minimum wage rise?
By 5% compared with the values previously set in Decreto No. 4122 of 2025. The increase has applied since 1 July 2026 and follows the recommendation of the minimum-wage council, CONASAM.
What does the minimum wage mean for expats?
It is a benchmark for local wage and cost-of-living levels. At roughly $510 a month, services and labor stay cheap by international standards. If you employ someone in Paraguay, however, you must pay at least this wage.
Do employers in Paraguay have to pay an aguinaldo?
Yes. The aguinaldo is a mandatory 13th-month salary for every dependent worker under Article 243 of the Labor Code. It equals one twelfth of the year's total pay and must be paid in full before 31 December. It applies whether you run a company or hire domestic help.
Disclaimer: This article is general information, not legal, tax or employment advice. Wages, fees, and exchange rates change constantly. Check current figures with the official sources.
Sources
- ▹MTESS: Reajuste del salario mínimo legal (Decreto N° 6225/2026)
- ▹ABC Color: Reajuste salarial, guía completa de los nuevos montos por sector
- ▹MTESS: El aguinaldo debe pagarse antes del 31 de diciembre (Art. 243 Código del Trabajo)
- ▹MTESS: reajuste de sueldos y jornales mínimos 2025 (Decreto N° 4122/2025)
About the author
Yannick Schroth
Founder · Paraguay relocation advisor
Lives in Asunción and guides international nomads, entrepreneurs and investors toward residency, a cédula and a tax-efficient structure in Paraguay.
