Guatemala, a constitutional democratic republic located in Central America, is bordered by Mexico to the north, the Pacific Ocean to the west, Belize and the Caribbean Sea to the east, and Honduras and El Salvador to the south. It is divided into 22 geographic departments.
Guatemala, which won its independence in 1821, is the most populous of the Central American countries and the largest economy. Famed for its volcanoes, lakes, textiles, Mayan ruins, and temperate climate in the highlands, more than half of Guatemala’s economic activity takes place in four sectors: manufacturing, commerce, private sector, and agriculture. The economy is largely informal, with estimates upwards of 70% of employment, which is one of the reasons that the tax revenue is the lowest in the region.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Guatemala.
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Guatemala, a constitutional democratic republic located in Central America, is bordered by Mexico to the north, the Pacific Ocean to the west, Belize and the Caribbean Sea to the east, and Honduras and El Salvador to the south. It is divided into 22 geographic departments.
Guatemala, which won its independence in 1821, is the most populous of the Central American countries and the largest economy. Famed for its volcanoes, lakes, textiles, Mayan ruins, and temperate climate in the highlands, more than half of Guatemala’s economic activity takes place in four sectors: manufacturing, commerce, private sector, and agriculture. The economy is largely informal, with estimates upwards of 70% of employment, which is one of the reasons that the tax revenue is the lowest in the region.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Guatemala.
The national holidays mentioned below are valid for the year 2025.
In addition to the listed holidays, Guatemala city observes an additional holiday for Assumption Day.
| January 1 | New Year’s Day | |
| April 17 | Maundy Thursday | Movable - The Thursday before Easter Sunday |
| April 18 | Good Friday | Movable - The Friday before Easter |
| April 19 | Easter Saturday | Movable - The Day before Easter |
| May 1 | Labor Day | |
| June 30 | Army Day | Movable |
| September 15 | Independence Day | |
| October 20 | Revolution Day | |
| November 1 | All Saints Day | |
| December 25 | Christmas Day |
The approximate time for sharing the contract with an employee in Guatemala is 10 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
Employees of firms with at least three workers have to be registered with the Institute for Social Security (Instituto Guatemalteco de Seguridad Social, IGSS). Employees contribute 4.83% of their monthly salary and employers contribute 12.67% of their monthly payroll to social security. This contribution is broken down as:
| Category | Employer | Employee |
| Old Age, Disability, and Survivors’ Benefits | 3.67% of gross monthly covered payroll | 1.83% of gross monthly covered earnings |
| Sickness and Maternity | 4% of gross monthly payroll | 2% of gross monthly earnings |
| Work Injury | 3% of gross monthly earnings | 1% of gross monthly earnings |
| INTECAP*
(Entity in charge of the training of workers) |
1% | None |
| IRTRA**
(Entity responsible for providing recreation and space to workers and their families) |
1% | None |
| Total | 12.67% | 4.83% |
*Instituto Técnico de Capacitacion y Productividad.
**Instituto de Recreación de los Trabajadores de la Empresa privada de Guatemala.
The ordinary working hours are eight hours a day and 48 hours a week. Night shifts (6 pm to 6 am) can be a maximum of six hours a day and 36 hours a week. The ordinary working day of mixed effective work may not exceed seven hours a day or exceed a total of 42 hours a week. The ordinary working day can be continuous or divided into two or more periods with rest intervals that are rationally adopted according to the nature of the work in question and the needs of the worker.
Any time over 44 hours in one workweek is considered overtime and is paid at a rate of 150% of the regular pay. The effective work that is executed outside the time limits determined for the ordinary working day, or that exceeds the lower limit that is contractually agreed, constitutes extraordinary working hours or days. Ordinary and extraordinary days cannot exceed a total of 12 hours a day, except in exceptional cases that are determined in the respective regulations or are due to an accident or imminent risk to people, establishments, machines, and facilities.
In any contract for an indefinite period of time, the first two months are deemed to be a trial, unless the parties agree to a shorter period for mutual convenience. During the trial period, either party may terminate the contract, of their own free will, with or without just cause, without incurring any liability.
The worker who wishes to terminate their contract without just cause or attending only to their own will must give prior notice to the employer in accordance with the following:
| Duration of Continuous Service | Notice Period |
| Less than 6 months | 1 week |
| After 6 months but less than 1 year | 10 days |
| After 1 year but less than 5 years | 2 weeks |
| More than 5 years | 1 month |
Termination notices must always be given in writing.
The ordinary working hours are eight hours a day and 48 hours a week. Night shifts (6 pm to 6 am) can be a maximum of six hours a day and 36 hours a week. The ordinary working day of mixed effective work may not exceed seven hours a day or exceed a total of 42 hours a week. The ordinary working day can be continuous or divided into two or more periods with rest intervals that are rationally adopted according to the nature of the work in question and the needs of the worker.
Any time over 44 hours in one workweek is considered overtime and is paid at a rate of 150% of the regular pay. The effective work that is executed outside the time limits determined for the ordinary working day, or that exceeds the lower limit that is contractually agreed, constitutes extraordinary working hours or days. Ordinary and extraordinary days cannot exceed a total of 12 hours a day, except in exceptional cases that are determined in the respective regulations or are due to an accident or imminent risk to people, establishments, machines, and facilities.
In any contract for an indefinite period of time, the first two months are deemed to be a trial, unless the parties agree to a shorter period for mutual convenience. During the trial period, either party may terminate the contract, of their own free will, with or without just cause, without incurring any liability.
The worker who wishes to terminate their contract without just cause or attending only to their own will must give prior notice to the employer in accordance with the following:
| Duration of Continuous Service | Notice Period |
| Less than 6 months | 1 week |
| After 6 months but less than 1 year | 10 days |
| After 1 year but less than 5 years | 2 weeks |
| More than 5 years | 1 month |
Termination notices must always be given in writing.
Employees of firms with at least three workers have to be registered with the Institute for Social Security (Instituto Guatemalteco de Seguridad Social, IGSS). Employees contribute 4.83% of their monthly salary and employers contribute 12.67% of their monthly payroll to social security. This contribution is broken down as:
| Category | Employer | Employee |
| Old Age, Disability, and Survivors’ Benefits | 3.67% of gross monthly covered payroll | 1.83% of gross monthly covered earnings |
| Sickness and Maternity | 4% of gross monthly payroll | 2% of gross monthly earnings |
| Work Injury | 3% of gross monthly earnings | 1% of gross monthly earnings |
| INTECAP*
(Entity in charge of the training of workers) |
1% | None |
| IRTRA**
(Entity responsible for providing recreation and space to workers and their families) |
1% | None |
| Total | 12.67% | 4.83% |
*Instituto Técnico de Capacitacion y Productividad.
**Instituto de Recreación de los Trabajadores de la Empresa privada de Guatemala.
