Guatemala
With localized contracts, easy invoice management, and best-in-class compliance, you can grow your team in Guatemala with confidence. Currently, you can hire and manage contractors in Guatemala through Remote, but our EOR services are not yet live.
- Capital City
Guatemala City
- Currency
Guatemalan quetzal (Q, GTQ)
- Languages
Spanish
- Population size
17,263,239
Facts & Stats
- Capital City
Guatemala City
- Currency
Guatemalan quetzal (Q, GTQ)
- Languages
Spanish
- Population size
17,263,239
- Ease of doing business
Easy
- Cost of living index
62.6 (2024)
- Payroll frequency
Monthly
- VAT - standard rate
12%
- GDP - real growth rate
3.4 (2019)
The Republic of Guatemala is located in Central America, and shares a border with Mexico, El Salvador, Honduras, and Belize. It was home to a large part of the Mayan civilization, and continues to attract millions of tourists to important historical sites, such as the ancient city of Tikal.
Guatemala has a diverse economy, although agriculture, textiles, and apparel are the country’s most important sectors. With a bilingual workforce and a relatively low cost of living, it has become an attractive location for many businesses looking to outsource in recent years.
Grow your team in Guatemala with Remote
Looking to employ workers in Guatemala? Companies hiring in Guatemala must either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Guatemala and keep you compliant at all times. Remote can hire, onboard, and pay your team in Guatemala so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Guatemala. to get started or talk to an expert for more details.
Risks of misclassification
Guatemala, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Guatemala may lead to fines and penalties for the offending company.
Employing in Guatemala
Guatemala’s employment regulations are laid out in the country’s Labor Law (El Derecho de Trabajo). Typical working hours are considered to be around 44 hours per week.
Effortless HR in Guatemala: Take the Tour
Competitive benefits package in Guatemala
At Remote, we’re passionate about helping you craft the best possible employee experience for your team. We are leading the way in developing globally competitive benefits programs. This means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive, and your company has the localized expertise needed to attract and keep the best global talent.
Our benefits packages in Guatemala are tailored to fulfill the local needs of employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Guatemala
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Guatemala.
| 3.67% | Social Security |
| 4% | Sickness and maternity |
| 3% | Work injury |
Types of leave
Employees are entitled to a minimum of 15 days’ paid leave once they have worked 150 days.
Employment termination
Termination process
Employers must have due reason to terminate an employee, as well as provide written notice.
Certain cases require judicial approval, such as the dismissal of pregnant or nursing employees, employees in the process of unionizing, or any dismissal where a collective conflict has been notified to a labor judge. Collective agreements may establish dismissal procedures, which the employer must follow.
Notice period
Employers must provide written notice before dismissal, as follows:
Under six months: one week’s notice
Between six and 12 months: 10 days' notice
Between one and five years: two weeks' notice
Over five years: one month’s notice
Collective bargaining and employment contracts may stipulate longer notice periods
Severance pay
If an employee who has worked for at least two months is dismissed without just cause, they are entitled to severance pay of one month’s salary for each year of service (based on the previous six months). Non-cash benefits are also due to those employees, equal to an additional 30% of the severance amount to be paid. If this severance is not paid, the employee can sue the employer in a labor court.
Probation periods
The first two months of an indefinite contract constitute a probationary period. During this probation, either party may terminate the contract (provided the reason is legal).
Fair Pricing in Guatemala
Top features
Only pay for contractors you actively work with
Work with contractors in 200+ countries
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Payroll
Consolidate your multi-country payroll
$50
per employee/month
Top features
Reduce costs by centralizing payroll management
Ensure local compliance for every country
Direct support from in-house local payroll experts
Accurate, on-time, compliant payroll to level-up your employee experience
Tax and labor authority reporting handled for you
Top features
Guided onboarding and offboarding
Employee profile and document management
Time and attendance (time off and tracking)
Expense management and reimbursement
Employee self-serve on the platform and mobile app