Moreover, this wage increase impacts the production chain and pricing, since “Salaries and/or Wages” and their “Social Contributions” are part of production costs, both in Direct Labor and Indirect Labor within manufacturing overhead.
Social Contributions by Type of Company and/or Organization
In a scenario where the Plurinational State of Bolivia forecasts GDP growth of 4.50% in 2026, the breakdown of contributions by sector is as follows:
| DETAIL | % | Industrial | Services | Commercial | Non-Profit |
| Gestora | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% |
| Provivienda | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
| Common Risk | 1.71% | 1.71% | 1.71% | 1.71% | 1.71% |
| Social Security | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
| Infocal | 1.00% | 1.00% | 0.00% | 0.00% | 0.00% |
| Monthly Contributions | 18.21% | 18.21% | 17.21% | 17.21% | 17.21% |
| Bonus (Aguinaldo) | 8.33% | 8.33% | 8.33% | 8.33% | 8.33% |
| Second Bonus | 8.33% | 8.33% | 8.33% | 8.33% | 8.33% |
| Severance Pay | 8.33% | 8.33% | 8.33% | 8.33% | 8.33% |
| Profit Share | 8.33% | 8.33% | 8.33% | 8.33% | 0.00% |
| Annual Long-Term Social Cost | 33.32% | 33.32% | 33.32% | 33.32% | 24.99% |
| Total Social Contributions | 51.53% | 51.53% | 50.53% | 50.53% | 42.20% |
Vacation pay is excluded since, under labor legislation, annual vacations are an inalienable right and cannot be compensated financially except in the event of employment termination. Similarly, subsidies and newborn allowances are not included, as they are non-recurring and not applicable to all employees.
Cost of an Employee with Total Earnings Equal to the National Minimum Wage
As of January 2, 2026, the cost of an employee earning the national minimum wage will be:
| DETAIL | Industrial | Services | Commercial | Non-Profit |
| Minimum National Wage 2026 | 3,300.00 | 3,300.00 | 3,300.00 | 3,300.00 |
| Monthly Contributions | 600.93 | 567.93 | 567.93 | 567.93 |
| Annual Long-Term Contributions | 1,099.56 | 1,099.56 | 1,099.56 | 824.67 |
| Total Salary + Contributions (2026) | 5,000.49 | 4,967.49 | 4,967.49 | 4,692.60 |
| Total Salary + Contributions (2025) | 4,167.08 | 4,139.58 | 4,139.58 | 3,910.50 |
| Increase (Amount) | 833.41 | 827.91 | 827.91 | 782.10 |
| Increase (%) | 20.00% | 20.00% | 20.00% | 20.00% |
Cost of an Employee with Seniority Bonus and Minimum Wage
The seniority bonus is a legal labor right regulated by Article 60 of Supreme Decree No. 21060 of August 29, 1985, affecting employee cost as follows, using the national minimum wage as the base salary:
| Type of Company | Base Salary | Years of Service | % Seniority Bonus | Seniority Bonus | Total Earned | Social Contributions | Total Earned + Contributions 2026 |
| Commercial
Services |
3,300.00 | 2 to 4 | 5% | 495.00 | 3,795.00 | 1,917.61 | 5,712.61 |
| 3,300.00 | 5 to 7 | 11% | 1,089.00 | 4,389.00 | 2,217.76 | 6,606.76 | |
| 3,300.00 | 8 to 10 | 18% | 1,782.00 | 5,082.00 | 2,567.93 | 7,649.93 | |
| 3,300.00 | 11 to 14 | 26% | 2,574.00 | 5,874.00 | 2,968.13 | 8,842.13 | |
| 3,300.00 | 15 to 19 | 34% | 3,366.00 | 6,666.00 | 3,368.33 | 10,034.33 | |
| 3,300.00 | 20 to 24 | 42% | 4,158.00 | 7,458.00 | 3,768.53 | 11,226.53 | |
| 3,300.00 | 25 or more | 50% | 4,950.00 | 8,250.00 | 4,168.73 | 12,418.73 |
| Type of Company | Base Salary | Years of Service | % Seniority Bonus | Seniority Bonus | Total Earned | Social Contributions | Total Earned + Contributions 2026 |
| Industrial | 3,300.00 | 2 to 4 | 5% | 495.00 | 3,795.00 | 1,955.56 | 5,750.56 |
| 3,300.00 | 5 to 7 | 11% | 1,089.00 | 4,389.00 | 2,261.65 | 6,650.65 | |
| 3,300.00 | 8 to 10 | 18% | 1,782.00 | 5,082.00 | 2,618.75 | 7,700.75 | |
| 3,300.00 | 11 to 14 | 26% | 2,574.00 | 5,874.00 | 3,026.87 | 8,900.87 | |
| 3,300.00 | 15 to 19 | 34% | 3,366.00 | 6,666.00 | 3,434.99 | 10,100.99 | |
| 3,300.00 | 20 to 24 | 42% | 4,158.00 | 7,458.00 | 3,843.11 | 11,301.11 | |
| 3,300.00 | 25 or more | 50% | 4,950.00 | 8,250.00 | 4,251.23 | 12,501.23 |
| Type of Company | Base Salary | Years of Service | % Seniority Bonus | Seniority Bonus | Total Earned | Social Contributions | Total Earned + Contributions 2026 |
| Non-Profit entities | 3,300.00 | 2 to 4 | 5% | 165.00 | 3,465.00 | 1,462.23 | 4,927.23 |
| 3,300.00 | 5 to 7 | 11% | 363.00 | 3,663.00 | 1,545.79 | 5,208.79 | |
| 3,300.00 | 8 to 10 | 18% | 594.00 | 3,894.00 | 1,643.27 | 5,537.27 | |
| 3,300.00 | 11 to 14 | 26% | 858.00 | 4,158.00 | 1,754.68 | 5,912.68 | |
| 3,300.00 | 15 to 19 | 34% | 1,122.00 | 4,422.00 | 1,866.08 | 6,288.08 | |
| 3,300.00 | 20 to 24 | 42% | 1,386.00 | 4,686.00 | 1,977.49 | 6,663.49 | |
| 3,300.00 | 25 or more | 50% | 1,650.00 | 4,950.00 | 2,088.90 | 7,038.90 |
For non-profit entities, the seniority bonus is calculated on one national minimum wage, while for all other entities, it is based on three national minimum wages.
Conclusion
The increase in the national minimum wage under the current framework is a nominal wage—that is, expressed in monetary terms. This does not determine the real value or purchasing power of the wage. In contrast, real wage reflects purchasing power and the standard of living, indicating the amount of goods and services a worker can acquire with the nominal wage.
An increase in the minimum wage raises labor and social contribution costs, which are key components in determining production, sales, and operating costs. This impacts cash flow, as the employer may sacrifice profit margins to remain competitive or raise prices. Therefore, it is essential to implement accounting, tax, and financial planning to remain competitive in the market without forfeiting profit margins.
If, after reviewing the above information, you believe you require legal advice regarding the seniority bonus, please contact one of our specialized attorneys. We are at your service!
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
