Guatemala is the largest Central American economy, with a population of 17 million and a GDP of USD 77.5 billion (in 2020). The country’s public debt and budget deficit are among the lowest in the world, justifying its upper middle-income status. Guatemala’s economic freedom score of 63.2 makes it the 69th freest economy in 2022.
Major economic hubs:
Guatemala City, Mixco, Villa Nueva
Local Universities
The top local universities in Guatemala are as follows:
Universidad de San Carlos de Guatemala
Ranking
Local: 1
World: 816
Universidad Rafael Landívar
Ranking
Local: 2
World: 1374
Universidad Galileo
Ranking
Local: 3
World: 2438
Universidad Francisco Marroquín
Ranking
Local: 4
World: 2594
Universidad Mariano Gálvez de Guatemala
Ranking
Local: 5
World: 3443
Salary Data
The table mentions common jobs with average monthly salary in Guatemala:
The Ministry of Labor and Social Welfare regulates the employment laws in Guatemala. Employers must be aware of the relevant rules and regulations for onboarding locals in Guatemala. This section covers the details employers should be wary of before onboarding employees from the Central American nation.
Employee Contract
As per Guatemala Employment Law, all employment contracts must be published in Spanish with all relevant details, including benefits, compensation, and working hours.
Probation Period
The probation period in Guatemala is of two months.
Public and Provincial Holidays 2023
Date
Name
Type
1 Jan
New Year’s Day
National Holiday
6 Apr
Maundy Thursday
National Holiday
7 Apr
Good Friday
National Holiday
8 Apr
Easter Saturday
National Holiday
1 May
Labour Day
National Holiday
3 Jul
Army Day Holiday
National Holiday
15 Sep
Independence Day
National Holiday
20 Oct
Revolution Day
National Holiday
1 Nov
All Saints’ Day
National Holiday
25 Dec
Christmas Day
National Holiday
Employee Leaves
Type of Leave
Time Period
Mandatory
Annual/Earned Leave
15 days
Yes
Sick Leave
At least 5 days
Yes
Maternity Leave
84 days
Yes
Payroll
Payroll Cycle
Guatemala follows a monthly payroll cycle.
Minimum Wage
The minimum wage in Guatemala ranges from GTQ 3,062.63 to GTQ 3,416.38, depending on the industry and activity.
Overtime Pay
Any working commitment exceeding eight hours a day and 44 hours a week counts as overtime. Employers must compensate overtime at 150% of the regular pay rate.
Bonus
13th Month Pay
Guatemala mandates 13th and 14th-month pay for all its local workforce.
In Guatemala, the terms set in the employment contract and collective bargaining agreement lay down the termination process. Any deviation from the specified procedure and reasons for termination can lead to legal disputes.
Employees who are terminated for unjust reasons are liable to receive severance pay of up to 12 months. However, they have 30 days to file a case against their employer and cannot rejoin as an employee after the matter has been resolved.
Visa and Immigration
Guatemala offers two kinds of work permits – one for people with family ties in the country and the other for foreigners with Guatemalan employment contracts. The latter is the most popular type, and the employer is responsible for conducting most of the processes.
Firstly, the employee must get a temporary residence visa by applying at the Instituto Guatemalteco de Migracion or a Guatemalan embassy. The work permit is obtained by applying at the Ministry of Labor with the relevant documents. Before starting work in Guatemala, the employee must have both visas approved by the relevant authorities.