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

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.

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. "

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

General 1 Salaries are paid semi-monthly.