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SALARY PAYMENT IN Guatemalan Quetzal (GTQ)
CONTRACT LANGUAGES Spanish / English
PAYROLL TAX 12.67%
PAYROLL CYCLE Monthly
TIME TO HIRE 12 hours
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Hire and pay talents
with Horizons in
180+ countries
Guatemala
Horizons provides compliance solutions to ensure your business in Guatemala operates in line with Guatemala labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Guatemala in a range of industries, from customer service, to accounting services, to software development. We also process monthly payroll, and, as a Guatemala Employer of Record, absorb all local employer liabilities. Partnering with our Guatemala PEO is the quickest and most cost-effective way to enter the Guatemala market.
| PEO Platform Hire in Guatemala, and pay employees through our platform or app. | PEO Cost Our Guatemala PEO solution is the most affordable on the market. | Time-to-hire Fast onboarding in Guatemala, hire in as little as 24 hours. |
| Contracts We draft labor contracts compliant with Guatemalan labor law. | Local Benefits We administer all mandatory benefits and contributions in Guatemala. | 180+ Countries It doesn’t stop with Guatemala — we are an international PEO |
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.
| Probationary period | 3 months (standard) |
| Termination notice period | 1 day notice: 0 – 1 month’s service 1 week notice: 1 – 3 months’ service 2 weeks notice: 3 month’ – 1 year’s service 1 month notice: 1 – 5 years’ service 2 months notice: 5+ years’ service |
| Severance | 1 week’s salary per year of service |
| Probationary period | 3 months (standard) |
| Termination notice period | 1 day notice: 0 – 1 month’s service 1 week notice: 1 – 3 months’ service 2 weeks notice: 3 month’ – 1 year’s service 1 month notice: 1 – 5 years’ service 2 months notice: 5+ years’ service |
| Severance | 1 week’s salary per year of service |
The standard working week in Guatemala is 44 hours long. Overtime is generally paid at a rate of 150% of normal rates.
Quick, compliant hiring in 24 hours—no subsidiary required.
| Date | Holiday name |
|---|---|
| 1 Jan , 2023 | New Year’s Day |
| 6 Apr , 2023 | Maundy Thursday |
| 7 Apr , 2023 | Good Friday |
| 8 Apr , 2023 | Easter Saturday |
| 1 May , 2023 | Labor Day |
| 3 Jul , 2023 | Army Day Holiday |
| 15 Sep , 2023 | Independence Day |
| 12 Oct , 2023 | Dia de la raza |
| 20 Oct , 2023 | Revolution of 1944 |
| 1 Nov , 2023 | All Saints’ Day |
| 24 Dec , 2023 | Christmas Eve |
| 25 Dec , 2023 | Christmas Day |
| 31 Dec , 2023 | New Year’s Eve |
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.
In general, employees in Guatemala are entitled to five days of paid sick leave each year.
Female employees in Guatemala are generally entitled to 12 weeks of paid maternity leave. Fathers can usually take paid paternal leave of two days.
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.
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.
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.
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.
With Horizons, you get quick service, transparent pricing, and expert support.
A Guatemala PEO and a Guatemala EOR are two types of companies which specialize in providing human resources services to businesses in Guatemala.
The main difference between a Guatemala PEO and a Guatemala EOR is in the scope of their services.
Guatemala PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Guatemala PEO is essentially outsourcing your HR duties in Australia.
Guatemala EORs actually take over as the legal employer of your employees based abroad. Guatemala EORs become responsible for labor compliance for your employees in Guatemala.
At Horizons, we offer both PEO and EOR services in Guatemala. Get in touch now and let us know what service you are seeking.
A PEO in Guatemala can feasibly hire both local and foreign nationals to work in Guatemala.
However, the ability of Horizons to sponsor your foreign national employee in Guatemala may be limited due to visa quotas practiced in many countries.
Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.
In most cases, Horizons’ Guatemala PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Guatemala.
It is possible to get a work visa in Guatemala. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Guatemala are limited, however—get started today to secure your employees’ visa spot.
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Headquarters – Europe
Skalitzer Str. 85/86
10997 Berlin
+49 30 3119 9653
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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