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Country hiring guide

Hiring in Guatemala ๐Ÿ‡ฌ๐Ÿ‡น

Central America's largest population; young workforce; nearshore services and manufacturing. Employer on-costs run ~15% (plus 13th/14th accruals) on top of gross salary. Here is what to know before your first Guatemala hire.

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Capital cityGuatemala City
CurrencyGuatemalan quetzal (GTQ)
LanguagesSpanish (official); 20+ Mayan languages
Population~18 million
Payroll frequencyMonthly; 13th (aguinaldo, Dec) & 14th (Bono 14, Jul)
VAT standard rate12% (IVA)
Employer burden*~15% (plus 13th/14th accruals) of gross
TGTC flat EOR fee$499/mo ยท Tier B
Overview

Employing in Guatemala

Employment in Guatemala runs under its national labour code, which sets the floor for wages, working hours, leave, and notice. Here are the essentials before you make an offer.

Minimum wage

  • Q4,002 base + Q250 bonus (2026)
  • ~Q3,817 outside capital*

Payroll cycle & extra pay

  • Monthly pay
  • Aguinaldo (Dec) + Bono 14 (Jul)

Public holidays

  • ~11 national public holidays
  • Paid days off

Onboarding & probation

  • Probation first 2 months
  • Free termination during probation
Employer costs

What you pay on top of salary

Employer on-costs in Guatemala run ~15% (plus 13th/14th accruals) of gross salary. Employer pays IGSS 12.67%, IRTRA 1%, INTECAP 1% of salary.

Employer contribution*Rate
IGSS (social security)12.67%
IRTRA (recreation)1%
INTECAP (training)1%

Passed through at cost

These statutory costs are paid at cost on top of TGTC's flat $499/mo fee, so you always see the real employer cost, not a marked-up percentage.

Employee-side taxes

Employees pay their own income tax and social-security share, withheld at source. Under an EOR, TGTC runs that payroll withholding for you.

Types of leave

Statutory leave in Guatemala

Annual leave

  • 15 working days after one year
  • Plus 50% vacation bonus

Maternity & parental leave

  • 84 days (30 pre / 54 post)
  • 100% pay; IGSS-funded

Sick leave

  • IGSS covers after 3 days*
  • Around two-thirds salary*

Other leave

  • Paid public holidays
  • Bereavement, marriage leave
Employment termination

Ending employment in Guatemala

Notice

  • 1 week (<6 months) to 1 month
  • Scales with tenure

Severance

  • One month salary per year
  • Unjustified dismissal

Probation

  • First 2 months
  • No severance if terminated

Contractor risk

  • Misclassification reclassifies as employee
  • Back pay and benefits owed

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Hire in Guatemala without setting up an entity

TGTC employs your hire in Guatemala on a compliant local contract, runs payroll and benefits, and passes statutory costs through at cost. One invoice, flat $499 per month.

Get a Guatemala quote