Overview

Capital
Guatemala City
Currency
Quetzal (GTQ)
Date Format
dmy

Taxes

Employer
1.00% - Workers Recreational Institute (IRTRA)
1.00% - Professional Training Institute (INTECAP)
10.76% - Social Security
Employee
4.83% - Social Security
5.00% - Up to 300,000
7.00% on excess of 300,000 - Over 300,000

Minimum Wage

General
The daily minimum wage is GTQ 90.16 ($12.18).

Working Hours

General
Fulltime employment is considered 44 hours weekly, and 8 hours daily. For work during the night, 36 hours weekly and 6 hours daily.
Overtime
Overtime, also called "extraordinary hours" are paid at 150%.

VAT

General
12% standard rate.

Payment

Payroll Frequency
Salaries are paid semi-monthly.

Mandatory Benefits

Pension Fund
Employers are required to contribute 3.67% of employees wages. Employees are required to contribute 1.83% of their wages.
Social Security
Employers contribute 12.67% of employees wages. Employees contribute 4.83% of their wages.
Additional Pay
"Incentive Bonus: Annual bonus (bono 14) equal to one months salary, paid in July. Christmas Bonus: Additional one months salary paid in December. "

Termination

Termination Process
Employers are expected to provide notice in accordence with the employees length of employment: * 0-6 months: 1 week notice * 6 months - 1 year: 10 days notice * 1-5 years: 2 weeks notice * Over 5 years: one months notice
Advance Notice
Employees are not required to provide advance notice.
Severance Pay
Employees terminated with cause do not receive severance payments. Termination without cause receives one month salary for every year employed.