What is the average salary in Bolivia for 2023?

The average annual salary in Bolivia is 102,000 BOB (Bolivian Boliviano) or 8,530 BOB/month. This equates to USD (US Dollar) 14,829/annum or USD 1,240/month according to April 2023 exchange rates.

In this article, we will discuss the average salary in Bolivia by range, median, and percentile. We will also explore the average salary by the city and profession and factors that impact average salaries, such as education and experience. 

Lastly, we’ll look at why Bolivia is great for outsourcing, followed by the top industries to outsource to Bolivia.

Table of Contents

Let’s go!

What is the average salary in Bolivia?

According to Salary Explorer, the average annual salary in Bolivia is 102,000 BOB/annum or  8,530 BOB/month. This equates to USD 14,829/annum or USD 1,240/month as per April 2023 exchange rates. 

Surveys also show a salary increase every 28 months by 5%, even during the pandemic.

Let’s look at some survey statistics on the average salary in Bolivia.

1. Salary range

The minimum salary average equates to 2,160 BOB (USD 314) per month, while the highest salary average tops out at 38,100 BOB (USD 5,539) per month. 

The actual maximum salary is much higher. These national average monthly salaries include all benefits such as housing and transportation.

2. Median salary

The median average salary for Bolivia is 7,800 BOB (USD 1,134) per month. This means that half (50%) of the country earns less than 7,800 BOB/month while the other half earns more than 7,800 BOB/month.

3. Salary percentiles

We can break down the median further to include the 25th and 75th percentile for a more detailed analysis of the salary distribution. 

For the 25th percentile, the data collected shows that 25% of Bolivians earn less than 5,630 BOB (USD 819) per month, while 75% earn more than 5,630 BOB/month.

For the 75th percentile, the data collected shows that 75% of Bolivians earn less than 11,800 BOB (USD 1,716) per month, while 25% earn more than 11,800 BOB/month.

4. Minimum wage

The minimum wage in Bolivia in 2023 is at 2,250 BOB/month or USD 327/month. 

Source: WageIndicator.org

5. Christmas bonus

All Bolivian employees are entitled to an obligatory Christmas bonus (Aguinaldo) under the General Labour Law. This bonus is equivalent to one month’s pay and not subject to any taxation.

Let’s see some Bolivian average salary comparisons by various factors. 

Bolivian average salary comparison

Here are some Bolivian average salary comparisons across different factors, including location and education level. 

1. By city

Since rural areas tend to have a lower population and lower average income, let’s look at the average salaries in Bolivia based on the major cities:

Source: Salary Explorer

2. By profession

Here is a salary comparison for average salaries in different career fields in Bolivia:

Source: Salary Explorer

3. By education

With education, two more factors impact the average salary. Location tends to play a part in influencing that figure, but the career field also has an impact.

Here is a rundown on how different degrees affect the average salary in Bolivia.

• Employees who have a certificate or diploma earn, on average, 17% more than their colleagues who only have a high school level qualification.
• Employees who possess a bachelor’s degree will earn an average of 24% more than their peers who possess a certificate or diploma.
• Professionals who hold a master’s degree will earn, on average, 29% more than their colleagues who only hold a bachelor’s degree.
• Ph.D. holders will, on average, earn 23% more than those who hold a master’s degree.

Source: Salary Explorer

4. By experience

Experience tends to be more critical and sees more increases in average income. Naturally, years of experience are directly proportional to the salary increase.

Here are some findings from surveys.

• Employees who have hit the two-five year marks within their field tend to earn on average 32% more than their colleagues who are juniors in their field. This is consistent across all industries and disciplines.
• Employees with more than five years of experience will earn on average 36% more than their colleagues who have less than five years of experience in their respective fields.
• Employees who have hit the 10-year mark in their respective careers will see a 21% increase in their salaries and a further 14% if they hit the 15-year mark. 

Source: Salary Explorer

Disclaimer: The salary figures mentioned in the article are taken from multiple salary surveys, and the actual figures may vary with location, job titles, employee experience, etc.

With that, let’s look at why Bolivia is an ideal outsourcing destination.

2 key reasons why Bolivia is perfect for outsourcing

While the World Bank has categorized Bolivia as a “lower-middle-income country,” it remains a benchmark of economic growth in Latin America. 

Bolivia witnessed an annual GDP growth rate of 8.01% in 2021 while dealing with the pandemic. Additionally, between 2006 and 2014, the country’s GDP per capita doubled, and the extreme poverty rate dropped from 38 to 18%.

Even in the face of hardship, this steady growth of Bolivia’s economy makes the country an attractive outsourcing location for many businesses. 

Here are two more reasons why you should consider outsourcing to Bolivia.

1. More profitable

South America has several other profitable locations like Argentina, Brazil, Peru, and Chile for outsourcing, but Bolivia is your best option.

Why? 

Let’s look at the economic level of two countries, Brazil and Argentina. 

These countries have a higher cost of living than Bolivia, leading to a higher average wage overall. As a result, outsourcing to these countries might not be as financially beneficial as outsourcing to Bolivia. 

2. Less competition

There is considerable completion in many western counties like the US or the UK regarding engineering and software development hires. 

This competition, coupled with the growing demand for these skills, can lead to a higher monthly income for full-time employees. 

In contrast, Bolivian employees can do the same tasks at a comparable skill level with lesser competition. This is because the Bolivian economy is still growing and doesn’t require the same number of engineering and software graduates as some other countries do. 

So you can get world-class talent more easily in Bolivia and for a reduced cost compared to at home. 

Now, let’s see which three industries are the best for outsourcing to Bolivia.

Top 3 industries to outsource to Bolivia

Despite having a good mining sector and household furniture manufacturing sector, most of Bolivia’s outsourcing power comes from the three industries explored below. 

1. Accounting

Bolivian accountants will make sure any business in the country complies with the local laws. 

Internal auditors will ensure every document is checked and all accounts are correctly managed for the fiscal year. They can manage all accounting tasks like taxes, payroll, and audits.

The Bolivian Ministry of Labor, Employment, and Social Security demand a declaration of how much you paid your employees, including benefits. Bolivian corporate secretarial services will ensure that this process is carried out smoothly.

Read this article on the benefits of accounting outsourcing.

2. Software development

According to the Electronic Government and Information and Communication Technologies Agency (AGETIC), Cochabamba city in Bolivia is the most prominent software developer and exporter in the country, with 80% of software programs developed there.

More than 200 Bolivian software developing companies export USD 50 million annually, mainly to North America. Sharing a time zone with the United States makes it easy to manage delivery dates, payments, and software quality.

3. Customer support

Bolivia values its English teaching institutions and believes that learning English is one of the practical tools for its youth to succeed. 

According to Education First, Bolivia has an English Proficiency Score of 524. This means the country has moderate English proficiency and ranks second for the same in Latin America.

This is why Bolivia is a key site for outsourcing customer support services. 

Many Bolivians are bilingual – fluent in English and Spanish – making communication with Spanish-speaking consumers much easier for a Bolivian call center worker. 

This ensures a higher level of collaboration and a better brand reputation as support in different languages can lead to better customer reviews.

Wrapping up

The lower average salary in Bolivia, compared to other western and North American countries, provides a significant possibility for outsourcing.

As with every other country, education and experience will increase average salaries regardless of field.

However, thanks to its growing economy and skilled talent pool, outsourcing software development, accounting, and customer support to Bolivia is a viable option.