Guatemala is a country in Central America bordered by Mexico, Belize, Honduras, El Salvador, the Caribbean, and the Pacific Ocean. The country is considered a developing economy that is highly dependent on agriculture. Guatemala has 37 volcanoes, 4 of which are active.
The minimum wage in Guatemala is GTQ 2,959.24 per month. The standard workweek is 8 hours per day, 44 hours per week for 5.5 days. Overtime work is paid at 150% of the regular salary.
Employees in Guatemala are entitled to 12 weeks of maternity leave, beginning 30 days before the expected due date. There is no provision for paternity leave.
Employees can take sick leave that is paid by social security (or by the employer if the employee isn’t covered by social security). The amount of sick pay depends on the length of employment.
There are 12 public holidays in Guatemala, and employees are entitled to 15 days of paid time off. Employees can request other types of leave for wedding and bereavement.
The termination process in Guatemala depends on the employment contract and collective agreement. If an employee is terminated without just cause, the employer may owe severance pay.
Notice periods usually depend on the employment contract and collective agreements in place, or on the length of employment at the company:
Employees who are terminated without just cause receive severance pay up to 12 months of wages. Employers cannot terminate union members, employees on maternity leave, and those in a collective dispute. If terminated in the cause of force majeure, the payment is usually between 2 days to 4 months of wages.
Full-time employees in Guatemala are entitled to a 13th and 14th month salary, each equivalent to 1 month’s salary. One is paid in July and the other in December.
★ 10.67% - Social Security
★ 1% - Workers Recreational Institute (IRTRA)
★ 1% - Professional Training Institute (INTECAP)
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It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.
Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.