Guatemala is the largest Central American economy, with a population of 17 million and a GDP of USD 77.5 billion (in 2020). The country’s public debt and budget deficit are among the lowest in the world, justifying its upper middle-income status. Guatemala’s economic freedom score of 63.2 makes it the 69th freest economy in 2022.
Guatemala City, Mixco, Villa Nueva
The top local universities in Guatemala are:
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|
Computrabajo, Opcion Empleo, Tecoloco
Guatemala follows a monthly payroll cycle.
The minimum wage in Guatemala ranges from GTQ 3,062.63 to GTQ 3,416.38, depending on the industry and activity.
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.
Guatemala mandates 13th and 14th-month pay for all its local workforce.
|Professional Training Institute (INTECAP)||1%|
|Workers Recreational Institute (IRTRA)||1%|
|Annual Income in GTQ||Tax Rate|
|0 – 300,000||5%|
|More than 300,000||7%|
The standard rate of Value Added Tax in Guatemala is 12%.
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.
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.
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.