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Guatemala PEO & Employer of Record

Expand your business into Guatemala and hire employees - in as little as 48 hours

Expand your organization into Guatemala with or without a Guatemalan entity

The small Central American nation of Guatemala has endured a tumultuous few decades, but there are positive signs of improvement for the future. Several key industries have expanded significantly in recent years, including tourism and parts of the export sector, and the economy has the definite potential to grow further.

If your organization is contemplating a move to expand in Guatemala, then it is important to understand that doing business can be slow. The country’s infrastructure is not as developed as many others’ and this can result in inefficiencies. Administrative procedures can take significantly longer than expected and delays to your expansion of weeks or even months are possible.

At Horizons, we specialize in helping businesses from all industries to expand abroad, including into Guatemala. Our professional employer organization (PEO), employer of record, and payroll services can offer you everything you need to start your Guatemalan expansion rapidly, efficiently, and compliantly.

As the only global PEO with an in-house recruitment team, we can also take care of the sourcing, hiring, and onboarding of your Guatemalan workforce, along with any associated HR and legal compliance work. Our tailored services can save you thousands in expansion costs.

Our Guatemala PEO simplifies your expansion

Horizons enables your business to expand its operations into China – without setting up a legal subsidiary.

Rapid Market Entry

Horizons will enable you to source, hire, and onboard professionals across Guatemala in as little as 48 hours.

Cost-Effective Expansion

Our PEO solution can help you benefit from cost savings of up to 82%, without the need to establish a Guatemalan entity.

Payroll Outsourcing

Simplified Guatemalan salary & payroll processing, including social security payments, tax, and any other required contributions.

Employee Onboarding

Utilize the relevant provision for all types of Guatemalan labor contracts, whether a fixed-term or open-ended contract.

Onsite Legal & HR Team

Full support for Guatemala-specific contract renewals, terminations, annual leave management, HR, and strategic guidance.

Ensure Full Compliance

We ensure that employment contracts are fully compliant and adhere to Guatemala’s labor laws and best practices.

Hiring in Guatemala: Employment law overview

Employment contracts in Guatemala

When hiring in Guatemala, employers are required to provide three copies of a written employment contract. Each party should keep one co[y each and the third must be submitted to the appropriate labor authority. All contracts should be written in Spanish, cover all relevant details such as salary, working hours, and benefits, and should use the local currency of the Guatemalan quetzal.

Working hours in Guatemala

The standard working week in Guatemala is 44 hours long. Overtime is generally paid at a rate of 150% of normal rates.

Public holidays in Guatemala

A number of public holidays are celebrated annually in Guatemala. The following days are commonly offered as leave for employees:

  • New Year’s Day
  • Maundy Thursday
  • Good Friday
  • Christmas
  • New Year’s Eve
  • Holy Saturday
  • Independence Day
  • Revolution Day
  • All Saints’ Day
  • Labor Day
  • Army Day

Vacation leave in Guatemala

Employees in Guatemala are usually entitled to 15 days of paid vacation leave each year. Employees qualify for this allowance after 150 days of service with an employer.

Sick leave in Guatemala

In general, employees in Guatemala are entitled to five days of paid sick leave each year.

Parental leave in Guatemala

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

Terminations and severance in Guatemala

Notice of termination is generally required for employees in Guatemala. The exact length of notice depends on the employee’s length of service. After six months, employees are entitled to one week of notice and this rises to ten days for one year of service and continues to rise up to one month after five years of service.

Severance payments are also sometimes required and usually equals around one month of salary per year of service.

Taxation in Guatemala

Employers and employees must both contribute a percentage of salary toward the country’s social security system. Employers provide 12.67% and employees provide 4.83%.

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

Health coverage in Guatemala

Guatemala’s healthcare system consists of a mixture of public and private care. Employers may choose to provide private medical insurance as part of their benefits packages.

Guatemala compensations & benefits

Compensation laws in Guatemala

The minimum wage in Guatemala varies depending on the type of work, but the legal minimum for non-agricultural work is GTQ92.88 per day.

Benefits management in Guatemala

Setting up a benefits system for your employees in Guatemala can be difficult to navigate, especially if you are unfamiliar with the country and its laws. If you want to tackle the setup independently, you can expect it to take several weeks and potentially cause delays to your expansion process.

Horizons offers an alternative to simplify your Guatemalan benefits management. Our outsourcing services will cover your benefit setup and management, helping you focus on a faster and more successful expansion.

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Horizons will help you expand your business in Guatemala faster

Horizons’ Guatemala-specific PEO, employer of record, and payroll outsourcing can provide your business with everything needed to start trading in Guatemala rapidly and compliantly. Our team of Guatemala experts will help you set up your operation and begin trading in Guatemala in as little as 48 hours, and could save you over 80% in expansion expenditure, whether or not you’ve already registered an entity in the country.

We will take care of all of your expenses, payroll, legal compliance, and more in Guatemala, as well as all ongoing HR work. And as the only global PEO with a dedicated in-house recruitment team, we are also here to find and hire your local staff, using our Guatemalan subsidiary as employer of record for your hires so you don’t even need to register a Guatemalan entity.

Speak to our experts today to find out how our custom outsourcing services can help you to seamlessly expand into Guatemala.