Guatemala

• New Year's Day
• Holy Thursday
• Good Friday
• Holy Saturday
• Labour Day
• Army Day
• Independence Day
• Revolution Day
• All Saints' Day
• Christmas Day

Working Hours

The standard work week in Guatemala depends on the hours and period worked. There are three work-hour periods:

* Standard daytime work: an employee cannot work more than 8 hours a day or 44 hours a week between 06.00 am - 06.00 pm.

* Standard night-time work: an employee cannot work more than 6 hours a day or 36 hours a week between 06.00 pm and 06.00 am the next day.                                                                       * Standard mixed-time work: an employee cannot work more than 7 hours a day or 42 hours a week. Standard mixed-time comprises standard daytime work and standard nighttime work. If four or more hours are worked between 06.00 pm and 06.00 am the next day, the work period is considered standard nighttime work.

The standard work hours per day can be increased by 2 hours without increasing the weekly hours, if agreed between the employer and the employee and if the work is not hazardous. Overtime is an additional payment of 50% of the employee's salary.

Minimum Wage

As of 1^st January 2025, the following monthly wage rates apply:

Guatemala City

Economic Activity	Daily Wage	Monthly Wage
Agricultural Industries	GTQ 118.14	GTQ 3,843.55
Non-agricultural Industries	GTQ 122.40	GTQ 3,973.05
Maquila and Export Industries	GTQ 107.79	GTQ 3,528.29

Other Regions

Economic Activity	Daily Wage	Monthly Wage
Agricultural Industries	GTQ 112.99	GTQ 3,686.86
Non-agricultural Industries	GTQ 116.73	GTQ 3,800.60
Maquila Export Industries	GTQ 101.83	GTQ 3,347.21

Employee Tax

Annual income	Tax rate
Up to GTQ 300,000	5%
More than GTQ 300,000	7%
Social security contribution	4.83%

Bonuses

Employees are entitled to receive a 13th-month salary incentive bonus in July and a 14th-month Christmas bonus in December (extra month each). Employees are also entitled to at least Q. 250 per month productivity bonus. Contractual or discretionary bonuses may also be given to employees.

Employment contracts in Guatemala are normally indefinite and must be written in Spanish and sent to the Labour Ministry. The employment contract must include:

• Full employer's and employee's details
• Start date
• Job title and responsibilities
• Employee's residential address
• Workplace
• Working hours
• Salary and leave entitlement
• Contract length
• Any mutually agreed terms and conditions
• Place and date of the signing of the contract, including identification or passport number
• Employee's and employer's signatures (or fingerprint if cannot sign), including identification or passport numbers
Any legal benefits are considered as automatically included.  The first two months are considered a probation period and can be terminated by either party without liability.

Fixed-term contracts are only executed for a specific service or temporary work and automatically include pro-rata according to the length of the agreement, all legal conditions, and benefits as per indefinite contracts.

Annual Leave

Leave entitlement depends on the length of the employee's service, and employees who have worked for 12 months are entitled to a minimum 15 days of annual leave.

Annual leave does not increase, unless included in the employee's agreement or in the collective agreement. An employee is entitled to take annual leave after a minimum of 150 days in a year.

A maximum of 7.5 days' annual leave may be carried over to the next year, to be taken in the first 60 days of the new year.

Sick Leave

Sick leave is paid by the Guatemalan Institute of Social Security (IGSS) or by the employer, if not paid by the social security authorities. The terms and calculations of the payments depend on each specific case.

Parental Leave

• Maternity leave: 30 days' paid leave, scheduled before the birth and 54 days after delivery. Maternity leave days not taken before the birth are added to the days after the delivery of the child. Maternity leave needs to total 84 days. In specific cases, such as a miscarriage, the mother is entitled to 42 days' paid leave, and in cases of illness, three months' paid leave.
• Paternity leave: 2 days' paid leave on the birth.

Termination Process

In Guatemala, there is no specific termination procedure.

The notice period depends on the terms of the employment contract. If there is no mention, the law provides regulation depending on the employee's length of service.

Specific cases, such as pregnant or nursing employees, require judicial approval before termination.

Severance Pay

If dismissal is without cause, employees are entitled to an equivalent of one month's salary for every year worked or pro-rated if less than a year. The last six months' salary is considered, including any bonuses, cash, or non-cash benefits.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.