Hire employees in

Guatemala, hassle-free

Hire employees in Guatemala, hassle-free

With Deel, your business can easily hire employees in Guatemala. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Guatemala is 10 days with Deel.

Currency

Guatemalan Quetzal

Capital

Guatemala City

Official Language

Spanish

Payroll Cycle

Monthly

Hire employees in Guatemala. No entity needed.

Usually, to hire in Guatemala, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Guatemala also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Guatemala quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

Request a Demo

All the necessary benefits for Guatemala
built right in

Deel allows you to provide localized benefits for employees in Guatemala within minutes. All in one manageable online dashboard.

  • National Industrial Training Fund
  • Private Healthcare - Unisure (optional)
  • Private Healthcare - Allianz (optional)

Our quickstart guide to hiring in Guatemala

Navigate the tabs below to learn everything you need to know about hiring an employee in Guatemala

Minimum Wage Requirements

The minimum wage is GTQ 2959.24 per month.

Individual Income Tax

The individual income tax ranges from 5% to 7%. Income tax is calculated according to progressive rates.

Employer Cost

The employer cost is generally estimated at 29.3% of the employee's salary.

  • Social Security (IGSS): 10.67%
  • Workers Recreational Institute (IRTRA): 1%
  • Professional Training Institute (INTECAP): 1%
  • 13th Bonus: 8.33%
  • Christmas bonus: 8.33%
  • One-off administrative registration costs: USD 45

  • One-off Mandatory Wet Ink Employment Agreement Handling Fee - 80 USD

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday. However, it is also common practice for employees to have a working week of 44 hours.

Overtime payment is mandatory and may be included in the salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 4 hours of overtime a day. For additional hours, employees are paid:

  • 150% of the hourly rate
  • 200% of the hourly rate for work on official holidays, annual leaves, or regular leaves and an additional day of leave

Maternity Leave

Employees who have worked for four consecutive months are entitled to 84 days of paid leave. 30 days must be taken before the child's birth. The employee will receive 100% of the salary during this period, and Social Security will be responsible for this pay.

Paternity Leave

Employees are entitled to 3 days of paid paternity leave. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay.

Parental Leave

In Guatemala, no law covers parental leave. However, employees are entitled to maternity leave and paternity leave.

Sick Leave

Sick leave in Guatemala is complex. Employees are entitled to paid sick leave. This leave is paid at different rates depending upon the length of the sickness and the employee's salary. Employees will be paid a maximum of Q150 a day directly by the Social Security.

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Guatemala are complex. There is no at-will termination in Guatemala for employers outside the probation period, and termination must be done for just cause.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • probation period
    • objective grounds
    • disciplinary dismissal
    • performance due to unsuitability for the job
  • By the expiration of the contract

Notice Period

The minimum notice period will vary according to the length of the employment and type of termination, between 1 week to 1 month. 

Severance for Employees

In Guatemala, there are no statutory requirements for severance payments. During the notice period, the employee will receive standard salary wages. However, if an employee is terminated without just cause, then they have 30 days to claim the court. If this succeeds, the employee will be entitled to 1 year of severance pay.

Paid Time Off

Full-time employees are entitled to 15 working days of paid time off (PTO) a year after a year of continuous work. PTO accrues monthly at 1.25 days per month. Employees are eligible for annual leave after 12 months of work. Part-time employees’ leave is pro-rata to the time worked.

PTO in Guatemala includes public holidays

Public Holidays

Guatemala celebrates 12 national holidays:

  • New Years Day
  • Maundy Thursday
  • Easter Friday
  • Easter Saturday
  • Labour Day Holiday
  • Army Day
  • Independence Day
  • Revolution Day
  • All Saints' Day
  • Christmas Eve (Half Day)
  • Christmas Day
  • New Year's Eve (Half Day)

In Guatemala, all cities have their own holiday for their patron saint

Onboarding

Onboarding takes 10 business days. Documents must be completed 1 day before the start date.

Employment Contract Details

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

  • name
  • start date
  • length of the employment
  • job description
  • termination conditions

Probation Period

Probation periods are mandatory. The probation period lasts 60 days.
btn_download

Download the complete guide to hiring in Guatemala

Simply fill out your details below to gain access to our complete guide to hiring in Guatemala.

Hiring in Guatemala, hassle-free

With Deel, your business can easily hire employees in Guatemala. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

29.3%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Guatemala?

View our Employee Cost Calculator

Deel makes growing remote and international teams effortless. Ready to get started?

+

Countries

+

Customers

+

Legal experts

+

Currencies