EOR Service in Guatemala

Hire, Onboard and Pay Employees in Guatemala Quickly and Efficiently

Hiring in Guatemala at a glance

CURRENCY
Guatemalan Quetzal (GTQ)
working hours
44 hours
public/bank holidays
12 Days
capital
Guatemala City
language
Spanish
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Jan 1 to Dec 31.
minimum hourly salary
No minimum wage
CURRENCY
Guatemalan Quetzal (GTQ)
working hours
44 hours
public/bank holidays
12 Days
capital
Guatemala City
language
Spanish
date format
DD/MM/YYYY
tax year
Jan 1 to Dec 31.
payroll frequency
Monthly
GDP
$95 billion (2022)

Employer of Record in Guatemala

Expanding your business and hiring foreign workers in Guatemala can be complicated. But with an Employer of Record (EOR), it gets easier. EORs specialize in managing the hiring of international employees, making sure everything is legal, handling payments, and providing benefits, even if your company isn't registered in Guatemala.


Choose Gloroots as your EOR in Guatemala, and you can speed up your hiring process, no matter how big or small your company is. We take care of all the details, so you can focus on your main business tasks. This means you can find talented people in Guatemala and explore business opportunities without getting bogged down by confusing rules and paperwork.


Why use Guatemala EOR?

When enterprises aim to expand their operations in Guatemala, the conventional approach often involves establishing a local subsidiary. This process involves a comprehensive set of legal and administrative requirements, which can span several months to complete. Additionally, Guatemala's labor laws, notably the Employment Act of 1995, provide essential protections and entitlements to employees.


Through Gloroots’ Guatemala EOR and PEO corporations can hire talent without the need to establish a local corporate entity. This approach lifts the hard part such as incorporating the local entity, hiring payroll and legal experts for compliant hiring and payments. 

EOR Costs in Guatemala

EOR/PEO services in Guatemala offer two ways to charge for their services: a fixed yearly fee for each employee or a fee based on the company's annual payroll. The first option usually has a set price, while the second one is a percentage of the total payroll.

With Gloroots, you get competitive pricing that's fair and attractive. Our pricing ensures your company and your employees get the HR support they need to perform at their best.

Key Metrics For Foreign Employers 

Guatemala 34th spot for labor employee cooperation indicates that it has one of the friendliest and dependable workforce in the world. Most of the workforce is bilingual (fluent in Spanish and an indigenous language). Now thanks to progressive educational policies, more than half of Guatemala's population is proficient in English. 

The table below depicts key indicators from the INSEAD’s Global Talent Competitiveness Report for employers wishing to hire from Guatemala.

Factors Global Ranking Interpretation
Rule of law 125 Indicates effectiveness of law enforcement
Labour-employer cooperation 34 Indicates positive labor-employee relationships
Reading Maths, and Science n/a Indicates average scores in OECD's survey of 15-year old students
University Ranking 76 Indicates average QS rankings
Labour productivity per employee 87 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 60 Indicates findability of skilled talent
Workforce with tertiary education 116 Indicates % of workforce with PG degrees
Digital Skills n/a Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Guatemala.

Why work in Guatemala ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Guatemala

Expanding your team in Guatemala involves the crucial task of sourcing the right talent at the right time and for the right roles. However, navigating the intricacies of compliance, payroll, taxes, and benefits can pose significant challenges due to the complex employment regulations in the country.

Enter Gloroots's global Employer of Record (EoR) service, which offers an invaluable solution. With Gloroots, you can alleviate the burdens associated with payroll, taxes, benefits, and compliance in Guatemala. This allows you to redirect your focus towards what truly matters – nurturing your workforce and fostering your company's growth.

Risks of misclassification

Employers in Guatemala often grapple with a common challenge: accurately distinguishing between their workforce, classifying them as either employees or freelancers, which is often referred to as "misclassification." This misjudgment can result in several complications, including inadequate benefits and legal repercussions.

However, a strategic solution exists: partnering with a Professional Employer Organization (PEO) or Employer of Record (EOR) in Guatemala. These specialized partners excel in ensuring adherence to local regulations, precise worker classification, equitable compensation, and the provision of appropriate benefits. By leveraging their expertise, employers can confidently delegate employment matters to seasoned professionals, allowing them to focus on their core business activities.

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Avoid hefty penalties with Gloroots.

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Employing in Guatemala

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Income tax

Income Range Tax Rate
Up to $300,000 5.00%
Over $300,000 7.00%

Other Taxes and Social Security contribution

Employer Payroll Contributions:

Contribution Description Contribution Rate
Workers Recreational Institute (IRTRA) 1 %
Professional Training Institute (INTECAP) 1 %
Social Security 10.67%
Total Employment Cost 12.67%

Employee Payroll Contributions

Contribution Type Rate Range
Social Security 4.83%
Total Employee Cost 4.83%

Separation

Employment Termination and Severance

Termination process

The termination procedure can differ based on the specific terms of the employment contract and any collective agreements in effect.

Notice period

When it comes to determining the notice periods under the Employment Contracts Act, both the employer and employee can agree on these notice periods, but they cannot exceed six months.  The length of notice required depends on how long the employee has been in service and the reason for termination.

If the employer initiates the termination, the notice periods are as follows:

Duration of service Duration of notice period
< 6 months

6 - 12 months

1- 5 years

5 years
1 week

10 days

2 weeks

1 month

Collective agreements might also outline specific notice periods. If the notice periods mentioned in the collective agreement differ from the legally required ones, the employer and employee must adhere to the notice period mentioned in the collective agreement.

Severance Pay

Guatemalan labor law mandates severance pay for damages upon unjust dismissal. This payment equals one month's salary for each year of continuous service, calculated based on the employee's earnings from the last six months. Additionally, this law introduces the concept of "economic advantages" (ventajas económicas) for severance payments, encompassing non-cash employer benefits estimated at 30% of the total salary. These benefits may include health or life insurance, company vehicles, mobile phones, cafeteria services, and similar perks. Consequently, upon termination, employers are obligated to provide an extra payment equivalent to 30% of the salary as part of the severance package.

Probation Periods

Typically, in Guatemala, the probationary period lasts for a duration of two months.

Start Hiring in Guatemala today

Hiring employees in Guatemala can seem complex due to various rules and regulations to remember. You need to understand employment laws, ensure accurate payments to employees, and follow fairness and data protection rules, among other things. All these factors can make the hiring process appear intricate.

But here's the good news – Gloroots can simplify everything for you. Our comprehensive solutions offer a convenient way to manage all aspects of hiring in Guatemala. Our experts assist with international hiring and complying with payment and work regulations. We handle employment agreements, on-time payments, and benefits, allowing you to concentrate on choosing the best candidates.

You can rely on Gloroots to make hiring in Guatemala straightforward and hassle-free.

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Experience Seamless Hiring in Guatemala ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Guatemala .

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