Insights

How to Hire Employees in Guatemala: A Step-by-Step Guide (2026)

Insights · By YuDing Wang · Updated 29 October 2026

To hire an employee in Guatemala you need an employer registered with IGSS, a written contract registered with the Ministry of Labour, and a salary at or above the minimum wage for the work location and sector. Plan for 14 monthly salaries a year, the Q250 monthly incentive bonus and employer contributions of 12.67%. If your company has no Guatemalan entity, an employer of record can employ the person for you. These are the steps in the order they happen.

Last reviewed in October 2026 against the Labour Code, the 2026 minimum wages and the IGSS contribution rates. General information, not legal advice.

Step 1: Decide who will employ the person

Option	When it fits	What to know
Your own Guatemalan company or branch	A growing team, local customers or local invoicing	Registration with the Mercantile Registry, SAT, IGSS and the Ministry of Labour comes first
Employer of record	One or more employees, or a first hire before a company	The person is employed locally on your behalf and you direct the work. How NNRoad’s Guatemala EOR works
Contractor	A defined project delivered independently	If you set the hours and direct the work, it is employment, with back pay of benefits and contributions

For a closer comparison, read how to start a business in Guatemala: company, branch or EOR.

Step 2: Check the right to work

Guatemalan citizens can be hired directly. Foreign nationals need a work permit from the Ministry of Labour and the right residence status, and employers must keep at least 90% Guatemalan staff and 85% of payroll for Guatemalans, with exceptions for management roles.

An employer of record is the simplest route for Guatemalan citizens and for people who already hold the right permit. If the person needs a new work permit, see Expat Employment in Guatemala.

Step 3: Set the salary

Minimum wages are set each year by region and sector. For non-agricultural work in 2026 they are Q4,002.28 a month in the department of Guatemala and Q3,816.90 elsewhere, plus the Q250 incentive bonus. Source: Ministry of Labour (MINTRAB): 2026 minimum wages.

Candidates usually discuss a monthly gross salary. Make clear in the offer that it is paid 14 times a year, with Bono 14 in July and Aguinaldo in December, and that the incentive bonus comes on top.

Step 4: Budget for the costs on top of salary

The employer pays IGSS contributions of 10.67% of salary, plus IRTRA 1% and INTECAP 1% where they apply; the employee pays IGSS 4.83%. Over a full year, a Q10,000 monthly salary costs about Q158,204 including the bonuses and contributions.

See Guatemala EOR cost for worked examples, or try the Guatemala labor cost calculator.

Step 5: Write and register the employment contract

The contract must be in writing, and a copy registered with the Ministry of Labour. The first two months of an open-ended contract are a probation period, unless the parties agree a shorter one. The contract should state at least:

the parties, the job and the place of work, including any remote work
the salary, the incentive bonus and the pay dates
the working hours and the weekly schedule
the start date and whether the contract is open-ended or fixed-term
leave, confidentiality and intellectual property terms

Step 6: Register the employee and set up payroll

The employee needs a personal ID (DPI) and a tax number (NIT). The employer enrols the employee with IGSS, pays monthly contributions, and withholds income tax (ISR) and pays it to SAT. Income tax rules changed in 2026, with further changes from 2027, so check the version in force for each pay period.

Pay salary and the incentive bonus on the agreed payday, Bono 14 in the first half of July and Aguinaldo in December, or half in December and half in January.

Step 7: Working hours, leave and absence

Topic	The rule
Hours	Day shifts of up to 8 hours a day and 44 hours a week; overtime is paid at 50% above the ordinary rate.
Annual leave	At least 15 working days of paid leave after each year of service.
Maternity leave	84 days: 30 before birth and 54 after, paid through IGSS where the employee qualifies.
Sick leave	IGSS pays a benefit for illness where the employee qualifies; the employer keeps the job open.
Public holidays	Paid public holidays, including Holy Week days, 1 May, 15 September, 1 November and Christmas.

Source: IGSS: maternity benefit (in Spanish).

Step 8: If the employee works remotely

Agree remote work in writing, including the working schedule and who provides the equipment and pays for internet. Working time limits and leave rules apply in the same way as in an office.

Step 9: Ending the employment

During the two-month probation either side can end the contract without liability. After that, a dismissal without just cause requires severance of one month’s salary for each year of service, based on the average of the last six months’ pay. In every case the employee receives prorated Bono 14 and Aguinaldo and payment for untaken leave.

Hiring checklist for Guatemala

Employer chosen: your own Guatemalan company, an employer of record or, for a true project, a contractor
Right to work confirmed for the role
Salary at or above the minimum wage for the region and sector, plus the Q250 incentive bonus
Annual cost budgeted, including Bono 14, Aguinaldo and contributions
Written contract signed and registered with the Ministry of Labour
DPI and NIT received; IGSS enrolment completed
Payroll calendar with July and December confirmed
Working schedule and remote work terms agreed

Questions about hiring in Guatemala

Can a foreign company hire an employee in Guatemala?

Yes. It can set up a Guatemalan company or branch and register as an employer, or use an employer of record that employs the person on its behalf.

How do I pay employees in Guatemala?

In quetzales, through payroll that withholds IGSS and income tax, with the Q250 incentive bonus every month, Bono 14 in July and Aguinaldo in December. An employer of record runs this for you if you have no local entity.

Can I hire someone in Guatemala as a contractor instead?

Only for genuinely independent work. If the person follows your instructions on hours and methods and works only for you, it is employment. Our On-Demand Talent service covers genuine project engagements.

What is the minimum wage in Guatemala in 2026?

It depends on the region and sector. For non-agricultural work it is Q4,002.28 a month in the department of Guatemala and Q3,816.90 elsewhere, plus the Q250 incentive bonus.

How long does it take to hire someone in Guatemala?

Allow for the candidate’s notice with their current employer and for contract registration and IGSS enrolment. A foreign national who needs a work permit takes considerably longer.

Hiring your first employee in Guatemala?

If you do not have a Guatemalan company, we can employ the person for you and run payroll from the first month. Tell us about the role and we will reply with the annual cost and a realistic start date.