Overview

Capital
Guatemala City
Currency
Quetzal (GTQ)
Date Format
dd/mm/yyyy

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).

Payroll

Payroll Cycle

Salaries are paid semi-monthly.

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%.

Payroll Contributions

Social Security

Employers contribute 12.67% of employees wages. Employees contribute 4.83% of their wages.

Pension Fund

Employers are required to contribute 3.67% of employees wages. Employees are required to contribute 1.83% 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. "

Leave

Maternity Leave

Maternity leave is 12 weeks, 30 days before, 54 days after birth (84 days total).

Paternity Leave

No statutory regulation

Parental Leave

No statutory regulation

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

Notice Period

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.

VAT

General

12% standard rate.