Remote’s guide to employing in

Guatemala
guatemala flag

With localised 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

    1,72,63,239

Services available in this country:
Contractor Management

Facts & Stats

Guatemala Map Illustration
  • Capital City

    Guatemala City

  • Currency

    Guatemalan quetzal (Q, GTQ)

  • Languages

    Spanish

  • Population size

    1,72,63,239

  • 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 localised 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.

Competitive benefits package in Guatemala

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practising “fair equity”, which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

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

Contractor Management

Compliantly onboard and pay contractors

$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

$50

per employee/month

Top features

  • Reduce costs by centralising 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 labour authority reporting handled for you

HRIS

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