Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
If you are a foreign employer planning to hire in Guatemala, this page provides valuable information about Employer of Record (EOR) services in the country, covering essential aspects such as payroll management, legal compliance, employee benefits, tax considerations, and more.
Employment Types in Guatemala
In Guatemala, individuals who work under the direction and dependence of another are considered employees and are protected by labor laws. All employees, except high-level employees, have equal employment rights, including limits on working hours and the right to form workers' unions and participate in decision-making regarding legal strikes. However, specific rules apply to certain types of work, such as farming, home work, domestic work, apprenticeships, transportation, sailing, and public service. Additionally, there are additional provisions for certain groups, such as women and underage workers.
On the other hand, independent contractors or self-employed individuals operate without being under the direction and dependence of another party. They are not classified as employees and are not subject to labor law provisions. If an individual believes they have been misclassified as an independent contractor, they can take legal action in a labor court to determine their employment status and seek any employment benefits they would have been entitled to if classified as an employee.
| Overview | |
| Continent | Americas |
| Country | Guatemala |
| Capital | Saint Peter Port |
| Time zone | UTC−06:00 |
| Total Time zones | 1 |
| Working hours per week | 44 |
| Working week | Monday–Saturday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | 31st March |
| Financial Year | January 1st to December 31st |
| Date format | dd/mm/yyyy |
| Currency | British Pound Sterling (GBP) |
| VAT | No standard VAT rate. |
Employer Payroll Contributions in Guatemala
| Employers | % of Gross Salary |
| Employers - Social Security | 6.6% |
| Total Employment Cost | 6.6% |
Employee Payroll Contributions in Guatemala
| Employees | % of Gross Salary |
| Employees - Social Security | 6.6% |
| Total Employee Cost | 6.6% |
Minimum Wages in Guatemala
| Minimum Wage | |
| Minimum Wage | Guernsey - 8.25 to 8.70 GBP per hour. |
In Guatemala, a national minimum wage has been established, categorized into three groups based on the type of activity:
- General or non-agricultural activities.
- Agricultural activities.
- Exporting and maquila activities, which refer to factories or assembly plants operating under preferential tariff programs.
As of 2022, the minimum wage (including the minimum mandatory bonus) is as follows:
- GTQ3,209.24 per month for general or non-agricultural activities.
- GTQ3,122.55 per month for agricultural activities.
- GTQ2,954.35 per month for exporting and maquila activities.
These minimum wage rates apply to all employees, regardless of age, industry, or experience, and they are reviewed annually.
There have been discussions about implementing different minimum wages for specific regions and activities starting in 2023. The Guatemalan Labor Code allows for activity-specific and region-specific minimum wages, although a recent attempt to set region-specific minimum wages was rejected by the Constitutional Court due to not meeting the parameters for living wages.
There are no salary caps, and wages must be paid in the official currency, the quetzal (GTQ). However, payments in foreign currencies are allowed if agreed upon by the parties involved. It is prohibited to pay salaries, either wholly or partially, using coupons, vouchers, or any other substitute for legal currency. Farming workers may receive up to 30% of their salary in food or other items for personal or family consumption, as long as the value of these items has been calculated at or below cost when determining the percentage they replace in salary calculations.
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | Not required by law. |
| Income Tax | |
| Flat Rate | 20% |