Guatemala

Country Snapshot

The GPS Country Snapshot includes 25 sections of information about labor law compliance in Guatemala. See a sample of popular sections below.

Termination of Employment

In Guatemala, the length of a statutory notice period for termination of an indefinite contract is based on the employee's duration of service.

  • 1-week notice for service under 6 months
  • 10 days' notice for more than 6 but less than 12 months of service
  • 2 weeks' notice for more than 1 year but less than 5 years of service
  • 1-month notice for 5 or more years of service

The notice period listed above applies to workers who wish to terminate a contract for an indefinite period without just cause once the trial period has elapsed. These notice periods are not binding on employers and are superseded by a notice period stipulated in an employment contract. If an employer has to terminate an employee due to just cause or misconduct, a written dismissal notice must be provided to the employee before termination.

Work Permits

A foreign national who wishes to work in Guatemala must obtain both a work permit and a residence permit. Most non-immigrant visas for temporary workers offer renewal periods. The initial stay can be 2 or 3 years, depending on the type of work, and can usually be renewed once. The work permit is valid for renewable periods of 1 year. A request for an extension must be filed 15 days before the expiration of the period for which the work permit is issued.

Before obtaining a work permit, an applicant must request a temporary residence permit. Temporary residence is granted for a period of 1 to 5 years, according to the application submitted by the foreign national and the decision of the Guatemalan Migration Institute. A temporary residence permit can be extended. However, if a person wants to stay in Guatemala for a period longer than 5 years, they must apply for a permanent residence permit. 

Effective October 7, 2025, foreign remote workers who are employed by foreign businesses may legally reside in Guatemala for 1 to 5 years. Workers must prove an income of at least USD 2,000 (United States dollar) per month in the prior year, or USD 3,000 if they have dependents. 

Paid Annual Leave

In Guatemala, the labor law grants an employee 15 consecutive working days of paid annual leave after completion of 12 months of continuous service with the same employer. The employee must have worked at least 150 days in the year of service to be entitled to leave. Annual leave pay must be issued to the employee before the start of the leave.

Workers must enjoy their vacation period without interruptions and are only obliged to divide them into 2 parts at most. Leave days are not cumulative from year to year. Employees cannot apply unused leave to the following year. However, at the termination of the contract employees can claim compensation in cash for leave that has been omitted in the last 5 years. 

Working Hours

Per the labor law, regular working hours are 8 per day and 44 per week (the standard workweek is six days). In case of mixed work day (day and night work), working hours cannot exceed 7 hours per day and 42 hours per week. In case of night work, working hours cannot exceed 6 hours a day or 36 hours a week.

The total working hours, including overtime, may not exceed 12 hours daily. Employees who work beyond the standard working hours are entitled to overtime pay at 150% of the regular hourly rate. Work performed beyond the limits provided by the contract between the parties is also considered overtime work and must be remunerated as such.

Maternity Leave

Under the Labor Code of Guatemala, pregnant female employees are entitled to a maximum of 12 weeks (84 days) of maternity leave, including 30 days of prenatal leave and 54 days of postnatal leave. 

An employee is entitled to receive her full salary while on maternity leave from the Guatemalan Institute of Social Security, provided she has paid contributions for 4 months in the 6 months preceding the prenatal leave and she is not engaged in any other paid work during the period of leave. If an employee is not registered with the Social Security Institute, the employer pays the full salary.

Minimum Wage

The minimum wages in Guatemala, effective from January 1, 2026, are as follows (all values in Guatemalan quetzales, GTQ)

CE1: Economic District 1 (Department of Guatemala)

Sector Daily Wage Monthly Salary Incentive Bonus Total Salary
Agricultural 124.64 3,791.20 250.00 4,041.20
Non-Agricultural 131.58 4,002.28 250.00 4,252.28
Exporter and Maquila 112.10 3,409.73 250.00 3,659.73

 

CE2: Economic District 2 (All Departments except Guatemala)

Sector Daily Wage Monthly Salary Incentive Bonus Total Salary
Agricultural 119.21 3,625.89 250.00 3,875.89
Non-Agricultural 125.49 3,816.90 250.00 4,066.90
Exporter and Maquila 105.90 3,221.10 250.00 3,471.10

Guatemala's employment law does not mandate a specific payroll cycle. However, it requires employment contracts to specify whether the pay frequency is monthly, bi-weekly, or daily.

Country Profile

The GPS Country Profile contains detailed information on over 60 topics related to labor law compliance within Guatemala.
  • Type of Employment Relationship
  • Permanent Employment
  • Fixed-Term or Specific-Purpose Contracts
  • Temporary Employment Contracts
  • Part-time Employment
  • Young Worker Employment
  • Vendors and Independent Contractors
  • Types of Contracts
  • Probationary Period
  • Termination of the Contract of Employment
  • Grounds for Termination
  • Notice of Dismissal
  • Fair Dismissal
  • Redundancy
  • Unfair Dismissal
  • Suspension of Contract of Employment
  • Severance Benefits
  • Hours of Work
  • Work Week and Timekeeping
  • Night Work and Shift Work
  • Overtime
  • Remote Work
  • Required Time Off
  • Public Holidays
  • Annual Leave
  • Sick Leave
  • Maternity
  • Other Forms of Leave
  • Social Insurance and Retirement
  • Social Security Contribution
  • National Retirement Scheme
  • Dependents’/Survivors Benefit
  • Life and Disability Insurance/Benefit
  • Statutory Allowances
  • Compensation and Benefits
  • Minimum Wage (Basic Wage)
  • Bonuses, Profit Sharing and Other Compensation
  • Medical Insurance
  • Work Environment
  • Workplace Safety and Health
  • Prohibition of Discrimination
  • Prohibition of Harassment
  • Data Protection and Privacy
  • Whistleblowers and Retaliation
  • Workers’ representation in the organization
  • Freedom of Association
  • Registration and Recognition of Unions
  • Trade Union Personality
  • Collective Bargaining and Agreements
  • Disputes and Settlements
  • Strikes and Lockouts
  • Unfair Labor Practices
  • Taxation of Compensation and Benefits
  • Income Tax
  • Taxation of Employee Benefits
  • Tax Filing and Payment Procedures
  • Double Tax Relief and Tax Treaties
  • Visas and Work Permits
  • Visas
  • Work Permits and Residence Permits

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