Remote’s guide to employing in

Guatemala
guatemala flag

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

Services available in this country:
Contractor Management
An aerial view of the tikal temple complex.

Facts & Stats

Guatemala
  • 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

Remote enables you to pay and manage independent contractors in Guatemala. 

We are working to provide more employment solutions for you in Guatemala, but our employer of record (EOR) service is not yet available here. To hire employees in this country, your company must own a legal entity or establish a subsidiary here.

In the countries where we do offer our EOR services, you do not need to establish a foreign entity to hire employees there. We take on the responsibility of navigating all the compliance requirements, so you can focus on finding the best global talent.

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

Seamlessly Manage Your Workforce, from First Hire to Final Paycheck

Competitive benefits package in Guatemala

At Remote, we want to help you craft the best possible employee experience for all your team members. We’re leading the way in practicing “fair equity”, which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive — and which allow you to attract the best local talent.

We are still building our own entity in Guatemala, but our benefits packages for all countries are tailored to fulfill the local needs of your employees. Typically, our packages include 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

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

Contractor Management

Compliantly onboard and pay contractors

$29

per contractor/month

Sign up

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

Remote 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

HR Management

Manage all of your employees in one place

Free
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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