Guatemala

Employment taxes

• Income tax: Progressive rates from 5% to 7% based on income.
• Social security contributions: Employees contribute about 4.83% of salary to the Guatemalan Social Security Institute (IGSS).
• Payroll taxes: Employers cover their share (around 12.67%), so compliance matters when you’re on a formal contract.

Leave policy

• Vacation: 15 paid working days after 1 year of continuous service.
• Public holidays: 12 national holidays
• Sick leave: Employers cover the first 2 days. From day 3, IGSS pays about 66% of salary for the certified illness period, within IGSS limits.
• Maternity leave: 12 weeks (6 before and 6 after birth), fully paid by the IGSS.
• Paternity leave: No specific legal provision, but some companies offer few days.
• Parental leave: No specific legal provision, but some companies offer flexible arrangements.

Employment termination

• Termination without just cause requires severance pay based on length of service, unpaid benefits, and the famous 13th and 14th salaries.
• Notice period: Typically 1 week to 1 month, depending on tenure.

Hiring and contracts

• Both indefinite and fixed-term contracts are common.
• Contracts should be in Spanish and signed by both parties.
• Probation period: Maximum 2 months.

Payroll and salary payments

• Minimum wage: Minimum wage in Guatemala varies by sector and economic district.
• Salaries are typically paid bi-monthly.
• Employees receive two additional bonuses: Aguinaldo (Christmas bonus) and Bono 14 (July bonus).

Benefits

Mandatory:

• Social security coverage (healthcare & pension)
• Paid vacation and holidays
• Aguinaldo & Bono 14

Optional:

• Private health insurance
• Meal or transportation allowances
• Performance bonuses

Monthly living cost (Guatemala City)

• Rent (1-bedroom apartment): $350–$600
• Utilities (electricity, water, internet): $80–$150
• Groceries: $150–$250
• Transportation (public): $20
• Co-working space: $100–$150
• Eating out: $5–$10 per meal

How to get a local ID number (NIT)

• Needed for tax purposes.
• Apply at the Superintendencia de Administración Tributaria (SAT).
• Remote workers can also register for NIT to comply with tax laws.

Social security registration

• Employers register employees with IGSS (Instituto Guatemalteco de Seguridad Social).
• Provides health coverage, maternity benefits, and pension contributions.

Banking

Popular banks:

• Banco Industrial
• BAC Credomatic
• Banrural
• Banco G&T Continental

Opening an account usually requires a passport or local ID (DPI) and a NIT (tax number).

Housing and rental process

• Most rentals require a 1-month deposit and first month rent.
• Contracts are usually 6–12 months.
• Tenant Rights: You cannot be evicted without proper legal notice and process.

Healthcare system

• Public healthcare via IGSS (limited quality).
• Many expats choose private clinics and hospitals, which are affordable compared to the U.S.
• Private insurance plans are widely available.

Driving and public transport

• Public buses and Transmetro are cheap but crowded.
• Ride-sharing apps like Uber are available in Guatemala City and Antigua.
• If driving, an international license is valid for 90 days, after which you need a local license.

Emergency and important contacts

• General emergency - 911
• Police - 122
• Ambulance - 128

Work permit and visa requirements

• All foreign citizens need work permit and residence visa, usually sponsored by an employer.
• Remote workers often stay on tourist visas (up to 90 days and extendable).

Business culture and work norms

• Personal relationships matter. Building trust takes time.
• Punctuality is appreciated but expect flexibility.
• Hierarchical structures are common, respect titles and seniority.
• Lunch is often the biggest meal of the day, and business can happen over it.