The Verde-Amarela came through the last-16 encounter in Belo Horizonte with a 3-2 win on penalties after the scores were locked at 1-1 after extra time.
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The Brazilian acknowledged that he had slapped the Chilean striker and Fifa's disciplinary committee have subsequently handed him a three-match ban, with a further one match suspended.
In a statement issued on Saturday, Fifa announced that, since he had already been absent for the quarter-final with Colombia, Paiva would now also take no part in Tuesday's semi-final against Germany nor the third-place play-off on 12 July or final on 13 July.
The disciplinary committee imposed the fine in accordance with Article 48 of the disciplinary code which stipulates "at least two matches for assaulting (elbowing, punching, kicking etc) an opponent or a person other than a match official".