Expand your global workforce in Guatemala
Your guide to the employment landscape, working customs and local labor laws in Guatemala
Capital
Guatemala City
Currency
Guatemalan Quetzal (GTQ)
Languages
Spanish, K'iche', and Q'eqchi'
GDP per Capita
$4,504.13
Employer Tax
12.67%
Payroll Frequency
Monthly
Talent overview
Guatemala is the largest Central American economy, with a population of 18 million and a GDP of USD 102.05 billion. The country’s public debt and budget deficit are among the lowest in the world, justifying its upper middle-income status.
Major economic hubs:
Guatemala City, Mixco, Villa Nueva
Skills in demand:
Guatemala
Top local universities in Guatemala
Universidad de San Carlos de Guatemala
Ranking
Local: 1
World: 816
Universidad Rafael Landívar
Ranking
Local: 2
World: 1374
Universidad Galileo
Ranking
Local: 3
World: 2438
Universidad Francisco Marroquín
Ranking
Local: 4
World: 2594
Universidad Mariano Gálvez de Guatemala
Ranking
Local: 5
World: 3443
Top Local Job Boards
Computrabajo, Opcion Empleo, Tecoloco
Number of LinkedIn users
1,291,000
Top Recruitment Agencies
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
The table mentions common jobs with average monthly salary in Guatemala:
| Job Title | Average Monthly Salary (GTQ) | Average Monthly Salary (USD) |
| Financial Manager | 19,300 GTQ | 2460.10 USD |
| General Manager | 17,800 GTQ | 2268.90 USD |
| Business Development Manager | 15,900 GTQ | 2026.72 USD |
| Financial Analyst | 12,800 GTQ | 1631.57 USD |
| Business Analyst | 12,600 GTQ | 1606.08 USD |
| Project Manager | 10,800 GTQ | 1376.64 USD |
Employ in Guatemala
Employing in Guatemala
The Ministry of Labor and Social Welfare regulates the employment laws in Guatemala. Employers must be aware of the relevant rules and regulations for onboarding locals in Guatemala. This section covers the details employers should be wary of before onboarding employees from the Central American nation.
Employee Contract
As per Guatemala career occupation Law, all employment contracts must be published in Spanish with all relevant details, including benefits, compensation, and working hours.
Probation Period
The probation period in Guatemala is of two months.
Public and Provincial Holidays
| Date | Name | Description |
| January 1 | New Year’s Day | National Holiday |
| April 17 | Maundy Thursday | National Holiday |
| April 18 | Good Friday | National Holiday |
| April 19 | Easter Saturday | National Holiday |
| May 1 | Labor Day | National Holiday |
| May 10 | Mothers’ Day (Working Mothers Only) | National Holiday |
| June 30 | Army Day Holiday | National Holiday |
| August 15 | Assumption of Mary (Guatemala City only) | Local Holiday |
| September 15 | Independence Day | National Holiday |
| October 12 | Day of Race | National Holiday |
| October 20 | Revolution of 1944 | National Holiday |
| November 1 | All Saints’ Day | National Holiday |
| December 25 | Christmas Day | National Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 15 days | Yes |
| Sick Leave | Upto 6 months | Yes |
| Maternity Leave | 84 days | Yes |
Leave Compliance
Public and Provincial Holidays
Payroll in Guatemala
Payroll cycle
Guatemala follows a monthly payroll cycle.
Minimum wage
The minimum wage in Guatemala ranges from GTQ 107.79 to GTQ 122.40 per day, depending on the industry and activity.
Overtime pay
Any working commitment exceeding eight hours a day and 44 hours a week counts as overtime. Employers must compensate overtime at 150% of the regular pay rate.
How taxes work
Employer Payroll Tax
| Benefit | Contribution |
| Maternity and Sickness | 4% |
| Occupational risks | 3% |
| Invalidity, Old-age and Survivors | 3.67% |
Employee Payroll Tax
| Benefit | Contribution |
| Maternity and Sickness | 2% |
| Occupational risks | 1% |
| Invalidity, Old-age and Survivors | 1.83% |
Employee Income Tax
| Annual Income in GTQ | Tax Rate |
| 0 – 300,000 | 5% |
| More than 300,000 | 7% |
VAT
The standard rate of Value Added Tax in Guatemala is 12%.
Bonus
13th Month Pay
Guatemala mandates 13th and 14th-month pay for all its local workforce.
Employee Benefits
- Paid leaves
- Maternity benefits
- Social security
Employee offboarding
In Guatemala, the terms set in the employment contract and collective bargaining agreement lay down the termination process. Any deviation from the specified procedure and reasons for termination can lead to legal disputes.
The notice period in Guatemala is given in the following table:
| Duration of employment | Notice period |
| Less than 6 months | 1 week |
| 6 months – 1 year | 10 days |
| 1 – 5 years | 2 weeks |
| More than 5 years | 1 month |
Employees who are terminated for unjust reasons are liable to receive severance pay of up to 12 months. However, they have 30 days to file a case against their employer and cannot rejoin as an employee after the matter has been resolved.
Visa and
immigration
Guatemala offers two kinds of work permits – one for people with family ties in the country and the other for foreigners with Guatemalan employment contracts. The latter is the most popular type, and the employer is responsible for conducting most of the processes.
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Your employment toolkit for Guatemala
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Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration
Firstly, the employee must get a temporary residence visa by applying at the Instituto Guatemalteco de Migracion or a Guatemalan embassy. The work permit is obtained by applying at the Ministry of Labor with the relevant documents. Before starting work in Guatemala, the employee must have both visas approved by the relevant authorities.