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<title>Social Security Programs Throughout the World: The Americas, 2015 - Paraguay</title>
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<h1>Social Security Programs Throughout the World: The Americas, 2015</h1>
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<h1>Paraguay</h1>
<div class="exchangeRate">Exchange rate: <abbr class="spell">US</abbr>$1.00&nbsp;= 5,611 guaraníes.</div>
<h2>Old Age, Disability, and Survivors</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1943.</p>
<p><span class="h4">Current laws:</span> 1992 (unified pension scheme), 2005 (retirement), 2009 (noncontributory <span class="nobr">old-age</span> pension), 2011 (reduced proportional pension), and 2013 (self-employed).</p>
<p><span class="h4">Type of program:</span> Social insurance and social assistance system.</p>
<p>Note: A 2015 law that requires household workers to be covered under social insurance has not yet been implemented.</p>
<h3>Coverage</h3>
<p><span class="h4">Social insurance:</span> Employed persons, including employees of decentralized state entities and enterprises partially owned by the state, municipal workers, and apprentices.</p>
<p>Voluntary coverage for self-employed persons, household workers, and housewives.</p>
<p>Special systems for public-sector employees, teachers, police and military personnel, railroad employees, and bank employees.</p>
<p><span class="h4">Social assistance:</span> Needy resident citizens of Paraguay.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span></p>
<p><span class="h5">Social insurance:</span> 9% of gross earnings.</p>
<p>The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.</p>
<p>The legal monthly minimum wage is 1,824,055&nbsp;guaraníes.</p>
<p>There are no maximum earnings used to calculate contributions.</p>
<p>The insured person's contributions also finance sickness, maternity, and work injury benefits.</p>
<p><span class="h5">Social assistance:</span> None.</p>
<p><span class="h4">Self-employed person</span></p>
<p><span class="h5">Social insurance:</span> 12.5% of the legal monthly minimum wage plus 0.5% for administrative fees.</p>
<p>The legal monthly minimum wage is 1,824,055&nbsp;guaraníes.</p>
<p>The self-employed person's contributions also finance work injury benefits.</p>
<p><span class="h5">Social assistance:</span> None.</p>
<p><span class="h4">Employer</span></p>
<p><span class="h5">Social insurance:</span> 14% of gross payroll.</p>
<p>The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.</p>
<p>The legal monthly minimum wage is 1,824,055&nbsp;guaraníes.</p>
<p>There are no maximum earnings used to calculate contributions.</p>
<p>The employer's contributions also finance sickness, maternity, and work injury benefits.</p>
<p><span class="h5">Social assistance:</span> None.</p>
<p><span class="h4">Government</span></p>
<p><span class="h5">Social insurance:</span> 1.5% of gross earnings; contributes as an employer.</p>
<p>The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.</p>
<p>The legal monthly minimum wage is 1,824,055&nbsp;guaraníes.</p>
<p>There are no maximum earnings used to calculate contributions.</p>
<p>Government contributions also finance sickness, maternity, and work injury benefits.</p>
<p><span class="h5">Social assistance:</span> The total cost.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Old-age pension (social insurance):</span> Age&nbsp;60 with at least 1,250&nbsp;weeks of contributions. Employment must cease.</p>
<p>Early pension: Age&nbsp;55 with at least 1,500&nbsp;weeks of contributions. Employment must cease.</p>
<p>Reduced proportional pension: Age&nbsp;65 with at least 750&nbsp;weeks of contributions. Employment must cease.</p>
<p><span class="h4">Pensi&oacute;n Alimentaria <span class="nobr">old-age</span> pension (social assistance):</span> Age&nbsp;65, assessed as needy, and does not receive any other pension.</p>
<p><span class="h4">Disability pension (social insurance):</span> Must be assessed with at least a 30% loss of earning capacity and have at least 150&nbsp;weeks of contributions if younger than age&nbsp;55; 150&nbsp;weeks to 250&nbsp;weeks if aged&nbsp;55 to 59; or 250&nbsp;weeks to 400&nbsp;weeks if aged&nbsp;60 to 65.</p>
<p>A medical commission of three Social Security Institute doctors assesses the degree of disability. The degree of disability is reviewed at least once every five years.</p>
<p><span class="h4">Survivor pension (social insurance):</span> The deceased received or was entitled to receive an <span class="nobr">old-age</span> or disability pension or had at least 750&nbsp;weeks of contributions at the time of death.</p>
<p>Eligible survivors include a <span class="nobr">widow(er)</span> or a partner who lived with the deceased for at least five years (two years if they had children); a child younger than age&nbsp;18 (no limit if disabled); and dependent parents if there are no other eligible survivors.</p>
<p><span class="h4">Survivor grant (social insurance):</span> The deceased had less than 750&nbsp;weeks of contributions.</p>
<p><span class="h4">Funeral grant (social insurance):</span> Paid to the person who pays for the funeral if there are no eligible survivors.</p>
<h3>Old-Age Benefits</h3>
<p><span class="h4">Old-age pension (social insurance):</span> 100% of the insured's average earnings is paid.</p>
<p>Early pension: 80% of the insured's average earnings plus 4% of average earnings for each year the insured is older than age&nbsp;55, up to age&nbsp;59, is paid.</p>
<p>Reduced proportional pension: 60% of the insured's average earnings is paid.</p>
<p>Average earnings for employed persons are based on earnings in the last 36&nbsp;months (excluding the last month) before retirement; last 120&nbsp;months for self-employed persons.</p>
<p>The minimum monthly <span class="nobr">old-age</span> pension is 33% of the legal monthly minimum wage.</p>
<p>The legal monthly minimum wage is 1,824,055&nbsp;guaraníes.</p>
<p>The maximum monthly <span class="nobr">old-age</span> pension is 300&nbsp;times the minimum daily wage.</p>
<p>The legal daily minimum wage is 70,156&nbsp;guaraníes.</p>
<p>The pension is paid monthly plus a December bonus of one month of the pension.</p>
<p>Old-age benefits are payable abroad under bilateral or multilateral agreement.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in the cost of living, depending on available funds.</p>
<p><span class="h4">Pensi&oacute;n Alimentaria <span class="nobr">old-age</span> pension (social assistance):</span> At least 25% of the legal monthly minimum wage is paid.</p>
<p>The legal monthly minimum wage is 1,824,055&nbsp;guaraníes.</p>
<h3>Permanent Disability Benefits</h3>
<p><span class="h4">Disability pension (social insurance):</span> 50% of the insured's average earnings in the last 36&nbsp;months before the disability began plus 1.5% of average earnings for each <span class="nobr">50-week</span> period of contributions exceeding 150&nbsp;weeks, up to 100%, is paid.</p>
<p>The minimum monthly disability pension is 33% of the legal monthly minimum wage.</p>
<p>The legal monthly minimum wage is 1,824,055&nbsp;guaraníes.</p>
<p>The maximum disability pension is 300&nbsp;times the minimum daily wage.</p>
<p>The legal daily minimum wage is 70,156&nbsp;guaraníes.</p>
<p>The pension is paid monthly plus a December bonus of one month of the pension.</p>
<p>Disability benefits are payable abroad under bilateral or multilateral agreement.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in the cost of living, depending on the availability of funds.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Survivor pension (social insurance):</span> 60% of the <span class="nobr">old-age</span> or disability pension the deceased received or was entitled to receive is split equally among a <span class="nobr">widow(er)</span> or partner older than age&nbsp;40 and children younger than age&nbsp;18.</p>
<p>A lump sum of three times the annual <span class="nobr">old-age</span> or disability pension the deceased received or was entitled to receive is paid to a <span class="nobr">widow(er)</span> or partner younger than age&nbsp;40.</p>
<p>If there&nbsp;are no&nbsp;other eligible survivors, the pension is paid to the deceased's parents.</p>
<p>The pension ceases on remarriage or cohabitation and a lump sum of twice the annual <span class="nobr">old-age</span> or disability pension the deceased received or was entitled to receive is paid.</p>
<p>The pension is paid monthly plus a December bonus of one month of pension.</p>
<p><span class="h4">Survivor grant (social insurance):</span> A lump sum of one month of the legal monthly minimum wage is paid for each year of contributions.</p>
<p>The legal monthly minimum wage is 1,824,055&nbsp;guaraníes.</p>
<p>Survivor benefits are payable abroad under bilateral or multilateral agreement.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in the cost of living and the availability of funds.</p>
<p><span class="h4">Funeral grant (social insurance):</span> A lump sum of 75&nbsp;times the legal daily minimum wage is paid.</p>
<p>The legal daily minimum wage is 70,156&nbsp;guaranties.</p>
<h3>Administrative Organization</h3>
<p><span class="h4">Social insurance:</span> Social Insurance Institute (<a href="http://www.ips.gov.py">http://www.ips.gov.py</a>) administers the program.</p>
<p><span class="h4">Social assistance:</span>&nbsp;Directorate for Noncontributory Pensions (DPNC, http://www.hacienda.gov.py/web-sseaf/index.php?c=297), under the Ministry of the Interior, administers the Pensi&oacute;n Alimentaria <span class="nobr">old-age</span> pension.</p>
<h2>Sickness and Maternity</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1943.</p>
<p><span class="h4">Current laws:</span> 1992 (unified pension scheme), and 1996 (medical benefits).</p>
<p><span class="h4">Type of program:</span> Social insurance system.</p>
<p>Note: A 2015 law that requires household workers to be covered under social insurance has not yet been implemented.</p>
<h3>Coverage</h3>
<p>Employed persons, including employees of decentralized state entities and enterprises partially owned by the state, and teachers.</p>
<p>Exclusions: Self-employed persons, public-sector employees, police and military personnel, railroad employees and bank employees.</p>
<p>Special systems for household workers, pensioners, and war veterans.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> See source of funds under Old Age, Disability, and Survivors. Pensioners contribute 6% of the pension.</p>
<p><span class="h4">Self-employed person:</span> Not applicable.</p>
<p><span class="h4">Employer:</span> See source of funds under Old Age, Disability, and Survivors. 2.5% of gross payroll for public health programs through the National Service for Malaria Eradication and job training and placement programs through the National Service for Professional Promotion (see Unemployment).</p>
<p><span class="h4">Government:</span> See source of funds under Old Age, Disability, and Survivors.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Cash sickness and maternity benefits:</span> Must have at least four consecutive months of contributions. (Insured women may not receive cash maternity benefits and cash sickness benefits at the same time.)</p>
<p><span class="h4">Medical benefits:</span> Must be currently insured. The number of contributions required depends on the procedure or service.</p>
<p><span class="h4">Benefits in kind:</span> Must have at least one month of contributions.</p>
<h3>Sickness and Maternity Benefits</h3>
<p><span class="h4">Sickness benefit:</span> 50% of the insured's average earnings in the four months immediately before the incapacity began is paid from the day after the incapacity began for up to 26&nbsp;weeks; may be extended for 24&nbsp;weeks in special cases. The benefit is reduced by half during periods of hospitalization if there are no dependents.</p>
<p><span class="h4">Maternity benefit:</span> 50% of the insured's average earnings in the four months immediately before the maternity leave is paid for three weeks before and six weeks after the expected date of childbirth.</p>
<p><span class="h4">Benefits in kind:</span> Milk vouchers are provided for up to eight months if the mother is unable to nurse the child.</p>
<h3>Workers' Medical Benefits</h3>
<p>The Social Insurance Institute provides medical services directly to patients. Benefits include general and specialist care, hospitalization, laboratory services, medicine, prostheses, dental care, and maternity care.</p>
<p>Benefits are paid for 26&nbsp;weeks for any one illness; may be extended to up to 52&nbsp;weeks in certain cases.</p>
<p>Public hospitals and clinics provide free essential health care to the general population, including poor and unemployed persons and their families. Benefits include reproductive health, maternity care, pediatric services, laboratory services, immunizations, and essential medicine.</p>
<p>Cost sharing: Social Insurance Institute facilities and public hospitals and clinics may require copayments.</p>
<p>The National Service for Malaria Eradication provides prevention and treatment for certain tropical diseases, including malaria, snail fever, dengue, chagas disease, and black fever.</p>
<h3>Dependents' Medical Benefits</h3>
<p>Medical benefits for dependents are the same as those for the insured.</p>
<p>Eligible dependents include the wife of the insured or pensioner (or a partner who has lived with him for at least two years before the sickness began); unemployed husband; unmarried children younger than age&nbsp;18 (no limit if disabled); and the insured's dependent parents older than age&nbsp;60.</p>
<h3>Administrative Organization</h3>
<p>Social Insurance Institute (<a href="http://www.ips.gov.py">http://www.ips.gov.py</a>) administers the social insurance program.</p>
<p>Social Insurance Institute operates its own clinics and hospitals.</p>
<p>Ministry of Public Health and Social Welfare (<a href="https://www.mspbs.gov.py">http://www.mspbs.gov.py</a>) administers public health care and the National Service for Malaria Eradication programs.</p>
<h2>Work Injury</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First laws:</span> 1927 and 1943.</p>
<p><span class="h4">Current laws:</span> 1992 (unified pension scheme) and 2013 (self-employed).</p>
<p><span class="h4">Type of program:</span> Social insurance system.</p>
<p>Note: A 2015 law that requires household workers to be covered under social insurance has not yet been implemented.</p>
<h3>Coverage</h3>
<p>Employed persons, including employees of decentralized state entities and enterprises partially owned by the state, municipal workers, and apprentices.</p>
<p>Voluntary coverage for self-employed persons, household workers, and housewives.</p>
<p>Special systems for public-sector employees, teachers, police and military personnel, railroad employees, and bank employees.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> See source of funds under Old Age, Disability, and Survivors.</p>
<p><span class="h4">Self-employed person:</span> See source of funds under Old Age, Disability, and Survivors.</p>
<p><span class="h4">Employer:</span> See source of funds under Old Age, Disability, and Survivors.</p>
<p><span class="h4">Government:</span> See source of funds under Old Age, Disability, and Survivors.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Work injury benefits:</span> There is no minimum qualifying period.</p>
<h3>Temporary Disability Benefits</h3>
<p>75% of the insured's average earnings in the last four months or the total contribution period, if shorter, is paid from the day after the disability began for up to 52&nbsp;weeks.</p>
<p>A medical commission of three Social Security Institute doctors assess the degree of disability. The degree of disability is reviewed at least once every five years.</p>
<h3>Permanent Disability Benefits</h3>
<p><span class="h4">Permanent disability pension:</span> For an assessed degree of disability of at least 30%, 22.5% to 100% of the insured's average earnings in the last 36&nbsp;months before the disability began is paid, according to the number of contributions and the assessed degree of disability.</p>
<p>Partial disability: For an assessed degree of disability of up to 29%, 60% of lost earnings is paid for five years.</p>
<p>A medical commission&nbsp;of three Social Security Institute doctors assesses the degree of disability. The degree of disability is reviewed at least once every five years.</p>
<h3>Workers' Medical Benefits</h3>
<p>Benefits include general and specialist care, hospitalization, medicine, and prostheses.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Spouse's&nbsp;pension:</span> 40% of the permanent disability pension the deceased received or was entitled to receive is paid to a <span class="nobr">widow(er)</span> or partner aged&nbsp;40 or older.</p>
<p>A lump sum of three times the annual permanent disability pension the deceased received or was entitled to receive is paid to a <span class="nobr">widow(er)</span> or partner younger than age&nbsp;40.</p>
<p>The pension ceases on remarriage or cohabitation and a lump sum of twice the annual permanent disability pension the deceased received or was entitled to receive is paid.</p>
<p><span class="h4">Orphan's pension:</span> 20% of the permanent disability pension the deceased received or was entitled to receive is paid to each child younger than age&nbsp;16 (no limit if disabled).</p>
<p><span class="h4">Other eligible survivors:</span> If there is no eligible <span class="nobr">widow(er),</span> partner, or child, the pension is paid to the deceased's parents.</p>
<p>All survivor benefits combined must not exceed 100% of the pension the deceased received or was entitled to receive.</p>
<p>Survivor benefits are payable abroad under bilateral or multilateral agreement.</p>
<p><span class="h4">Survivor grant:</span> If the deceased had less than 750&nbsp;weeks of contributions at the time of death, a lump sum of one month of the legal monthly minimum wage for each year of contributions is paid.</p>
<p>The legal monthly minimum wage is 1,824,055&nbsp;guaranties.</p>
<p>Survivor benefits are payable abroad under bilateral or multilateral agreement.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in the cost of living.</p>
<p><span class="h4">Funeral grant:</span> A lump sum of 75&nbsp;times the legal daily minimum wage is paid.</p>
<p>The legal daily minimum wage is 70,156&nbsp;guaranties.</p>
<h3>Administrative Organization</h3>
<p>Social Insurance Institute (<a href="http://www.ips.gov.py">http://www.ips.gov.py</a>) administers the program.</p>
<p>Social Insurance Institute operates its own clinics and hospitals.</p>
<h2>Unemployment</h2>
<h3>Regulatory Framework</h3>
<p>No statutory benefits are provided.</p>
<p>Law <abbr title="Number">No.</abbr>&nbsp;253 (1971) requires the National Service for Employment Promotion (SNPP), under the Ministry of Labor, Employment, and Social Security, to provide job training and placement programs.</p>
<h2>Family Allowances</h2>
<h3>Regulatory Framework</h3>
<p>No statutory benefits are provided.</p>
<p>The 1993 labor code requires employers to provide specified maternity and family allowance benefits based on the number of children.</p>
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