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hire in Guatemala

Guatemala PEO &
Employer of Record

SALARY PAYMENT IN Guatemalan Quetzal (GTQ)

CONTRACT LANGUAGES Spanish / English

PAYROLL TAX 12.67%

PAYROLL CYCLE Monthly 

TIME TO HIRE 12 hours

STAY COMPLIANT WITH GUATEMALA LABOR LAWS

Hire in Guatemala

Horizons provides compliance solutions to ensure your business in Guatemala operates in line with Guatemala labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Guatemala in a range of industries, from customer service, to accounting services, to software development. We also process monthly payroll, and, as a Guatemala Employer of Record, absorb all local employer liabilities. Partnering with our Guatemala PEO is the quickest and most cost-effective way to enter the Guatemala market. 

Facts & Stats

PEO Platform Hire in Guatemala, and pay employees through our platform or app. PEO Cost Our Guatemala PEO solution is the most affordable on the market. Time-to-hire Fast onboarding in Guatemala, hire in as little as 24 hours.
Contracts We draft labor contracts compliant with Guatemalan labor law. Local Benefits We administer all mandatory benefits and contributions in Guatemala. 180+ Countries It doesn’t stop with Guatemala — we are an international PEO
stay compliant with Guatemala labor laws

Employment Laws

Employment contracts in Guatemala

When hiring in Guatemala, employers are required to provide three copies of a written employment contract. Each party should keep one co[y each and the third must be submitted to the appropriate labor authority. All contracts should be written in Spanish, cover all relevant details such as salary, working hours, and benefits, and should use the local currency of the Guatemalan quetzal.

Fixed-term
Probationary period

3 months (standard)

Termination notice period

1 day notice: 0 – 1 month’s service

1 week notice: 1 – 3 months’ service

2 weeks notice: 3 month’ – 1 year’s service

1 month notice: 1 – 5 years’ service

2 months notice: 5+ years’ service

Severance

1 week’s salary per year of service

Indefinite
Probationary period

3 months (standard)

Termination notice period

1 day notice: 0 – 1 month’s service

1 week notice: 1 – 3 months’ service

2 weeks notice: 3 month’ – 1 year’s service

1 month notice: 1 – 5 years’ service

2 months notice: 5+ years’ service

Severance

1 week’s salary per year of service

Working hours in Guatemala

The standard working week in Guatemala is 44 hours long. Overtime is generally paid at a rate of 150% of normal rates.

Hire compliantly in Guatemala without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Public holidays in Guatemala 2023

Guatemala has a range of national public holidays that are celebrated annually. In 2023 these holidays are:
Date Holiday name
1 Jan , 2023 New Year’s Day
6 Apr , 2023 Maundy Thursday
7 Apr , 2023 Good Friday
8 Apr , 2023 Easter Saturday
1 May , 2023 Labor Day
3 Jul , 2023 Army Day Holiday
15 Sep , 2023 Independence Day
12 Oct , 2023 Dia de la raza
20 Oct , 2023 Revolution of 1944
1 Nov , 2023 All Saints’ Day
24 Dec , 2023 Christmas Eve
25 Dec , 2023 Christmas Day
31 Dec , 2023 New Year’s Eve

Vacation leave in Guatemala

Employees in Guatemala are usually entitled to 15 days of paid vacation leave each year. Employees qualify for this allowance after 150 days of service with an employer.

Sick leave in Guatemala

In general, employees in Guatemala are entitled to five days of paid sick leave each year.

Parental leave in Guatemala

Female employees in Guatemala are generally entitled to 12 weeks of paid maternity leave. Fathers can usually take paid paternal leave of two days.

Terminations and severance in Guatemala

Notice of termination is generally required for employees in Guatemala. The exact length of notice depends on the employee’s length of service. After six months, employees are entitled to one week of notice and this rises to ten days for one year of service and continues to rise up to one month after five years of service.

Severance payments are also sometimes required and usually equals around one month of salary per year of service.

Taxation in Guatemala

Employers and employees must both contribute a percentage of salary toward the country’s social security system. Employers provide 12.67% and employees provide 4.83%.

Income tax in Guatemala is either 5% or 7%, depending on the level of income.

Health coverage in Guatemala

Guatemala’s healthcare system consists of a mixture of public and private care. Employers may choose to provide private medical insurance as part of their benefits packages.

hassle-free Guatemala compensation & benefits

Compensation & Benefits

Compensation laws in Guatemala

The minimum wage in Guatemala varies depending on the type of work, but the legal minimum for non-agricultural work is GTQ92.88 per day.

Benefits management in Guatemala
Setting up a benefits system for your employees in Guatemala can be difficult to navigate, especially if you are unfamiliar with the country and its laws. If you want to tackle the setup independently, you can expect it to take several weeks and potentially cause delays to your expansion process. Horizons offers an alternative to simplify your Guatemalan benefits management. Our outsourcing services will cover your benefit setup and management, helping you focus on a faster and more successful expansion.

Hire in Guatemala in 24h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

A Guatemala PEO and a Guatemala EOR are two types of companies which specialize in providing human resources services to businesses in Guatemala.

The main difference between a Guatemala PEO and a Guatemala EOR is in the scope of their services.

Guatemala PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Guatemala PEO is essentially outsourcing your HR duties in Australia.

Guatemala EORs actually take over as the legal employer of your employees based abroad. Guatemala EORs become responsible for labor compliance for your employees in Guatemala.

At Horizons, we offer both PEO and EOR services in Guatemala. Get in touch now and let us know what service you are seeking.

A PEO in Guatemala can feasibly hire both local and foreign nationals to work in Guatemala.

However, the ability of Horizons to sponsor your foreign national employee in Guatemala may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Guatemala PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Guatemala.

It is possible to get a work visa in Guatemala. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Guatemala are limited, however—get started today to secure your employees’ visa spot.