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From the ancient Mayan ruins of Tikal to the vibrant markets of Antigua, Guatemala encompasses a rich cultural heritage alongside modern innovation.
The Guatemalan government’s efforts to create a business-friendly environment and the country’s advanced infrastructure and connectivity make it an ideal choice for companies looking to expand their global team with top talent.
Key takeaways:
Guatemala has taken a significant step towards attracting more investment and accelerating its economic growth by establishing a revolving fund to finance pre-investment studies for infrastructure projects.
The FIP fund is a collaborative effort between Guatemalan authorities and U.S. officials who have committed $7 million over three years to support this initiative.
Guatemala also has a strong talent pool of bilingual professionals, many fluent in Spanish and English.
Here is a quick overview of Guatemala:
Guatemala invests heavily in education to develop a skilled workforce aligned with labor market needs.
The Millennium Challenge Corporation allocated over $27 million for investment in Guatemalan education projects, including $4.2 million for technical and vocational education and training initiatives.
Common remote job titles in Guatemala include:
Guatemala recognizes two primary types of labor contracts under its Labor Code:
In Guatemala, the standard workday is eight hours, with a maximum of 44 hours per week. Overtime kicks in after that, which is paid at 150% of the regular rate.
Employers must also pay 13th and 14th-month salary bonuses equivalent to one month’s salary each in July and December.
In 2024, the minimum wage in Guatemala increased to GTQ 3,384.59 per month for non-agricultural jobs.
The standard probation period for employees in Guatemala is typically two months. However, this can be extended to six months by mutual consent between the employer and the employee.
Employers in Guatemala must contribute 12.67% of each employee’s gross salary to the Guatemalan Social Security Institute (IGSS). This covers pensions, healthcare, disability, and maternity benefits.
Companies may also be required to contribute to the Recreational Training Institute (IRTRA) at varying rates depending on the industry.
Terminating an indefinite contract in Guatemala involves specific notice periods based on how long the employee has worked for the company:
Employees are entitled to one month’s severance pay for each year of uninterrupted service. If terminated without cause, they receive up to 12 months of wages.
Guatemalan employment law stipulates that employees completing one year of service with the same employer receive 15 vacation days.
Employees also enjoy paid time off for several significant public holidays, including New Year’s Day, Maundy Thursday, and Good Friday.
Employers registered with IGSS must provide sick leave to employees. The amount of sick pay depends on the type of illness, the employee’s length of service, and internal Social Security regulations.
If an employer isn’t registered with the IGSS, they are still required to grant sick leave until the employee fully recovers.
Pregnant female employees receive 12 weeks of paid maternity leave, which starts 30 days before the due date. Employees receive their full salary from the IGSS if they’ve contributed for at least four of the past six months and don’t have another job.
If the pregnant employee isn’t registered with Social Security, the employer covers their full salary during the leave.
New fathers in Guatemala are entitled to two days of fully paid paternity leave for the birth of their child.
Guatemala is becoming a popular destination for self-employed digital nomads as well as full-time employees to work remotely, especially in Antigua, which has a strong expat community that makes it easy to connect with others.
The country offers reliable high-speed internet, particularly in urban areas and popular tourist spots, ensuring that remote workers can stay productive. Numerous co-working spaces, such as Impact Hub, provide fast and reliable connectivity.
While no digital nomad visa exists for Guatemala, visitors can stay in the country for 90 days on a tourist visa, potentially extending it for another 90 days.
There are several convenient options for companies to pay their remote employees in Guatemala.
Hiring in Guatemala can be challenging for companies unfamiliar with the local labor laws and regulations.
An EOR like Remofirst can manage human resources tasks, including onboarding, payroll, taxes, employee benefits such as health insurance, and compliance in Guatemala and more than 180 countries.
Book a demo with Remofirst today to learn more.
