Guatemala
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
Facts & Stats
- 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
44.76 (2021)
- Payroll frequency
Monthly
- VAT - standard rate
12%
- GDP - real growth rate
3.8 (2019)
Grow your team in Guatemala with Remote
You can pay contractors now in Guatemala with Remote in some currencies (talk to an expert now for full details).
Note that we are busy building our own entity in Guatemala to provide you with the best possible employment solutions for your employees, but our employer of record service is not yet live in this country.
To employ in Guatemala, companies must own a local legal entity in the country or work with a global employment solution. Developing the processes required to manage payroll, benefits, taxes, and onboarding in countries like Guatemala can get complicated fast, especially without localized expertise.
If you're looking to start hiring in a country like this, partnering with a global employment solution like Remote makes it easy for your company to employ workers quickly, cost-effectively, and in full compliance with all local legislation.
In the countries where we do offer our EOR services, Remote takes on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.
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.
Effortless HR in Guatemala: Take the Tour
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
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
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
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