Employment Law

Employment Contracts in Guatemala

When recruiting in Guatemala, employers must provide three copies of a written employment contract. Each party should retain one copy and a third copy must be submitted to the appropriate labor department. All contracts should be written in Spanish, cover all relevant details such as wages, working hours, and benefits, and should be in the local Guatemalan Quetzal currency.

Fixed Term

Indefinite

Guatemala Working Hours

The standard working week in Guatemala is 44 hours. Overtime pay is generally 150% of regular wages.

Holiday Policy

Guatemala Vacation

Employees in Guatemala are generally entitled to 15 days of paid leave per year. Employees are eligible for this allowance after working for their employer for 150 days.

Guatemala Sick Leave

Generally speaking, employees in Guatemala are entitled to five days of paid sick leave per year.

Parental Leave in Guatemala

Female employees in Guatemala are generally entitled to 12 weeks of paid maternity leave. Fathers usually get two days of paid maternity leave.

Termination and Severance in Guatemala

Employees in Guatemala are generally required to give notice of termination. The exact notice period depends on the employee's length of service. After six months, employees are entitled to one week's notice, after one year's service this is up to ten days' notice, and after five years' service this is up to one month's notice.

Sometimes severance pay is also required, usually equivalent to about one month's salary for each year worked.

Guatemala Taxes

Both employers and employees are required to contribute a certain percentage of wages to the national social security system. The employer contributes 12.67% and the employee contributes 4.83%.

Income tax in Guatemala is 5% or 7%, depending on income level.

Health Insurance in Guatemala

Guatemala's healthcare system consists of public and private healthcare systems. Employers may choose to offer private health insurance as part of their benefits package.

Salary and Benefits

Guatemala’s Compensation Law

Minimum wages in Guatemala vary depending on the type of job, but the legal minimum wage for non-agricultural jobs is GT92.88 per day.

Welfare Administration in Guatemala

Setting up a benefits system for employees in Guatemala can be difficult to navigate, especially if you are unfamiliar with the country and its laws. If you want to handle the setup independently, it may take several weeks and may cause delays in the expansion process. Remoly offers an alternative to simplify benefits administration in Guatemala. Our outsourcing services will cover your benefits setup and administration, helping you focus on faster, more successful expansion.