Guide · Guatemala
Guatemala EOR Cost: What a Hire Costs Each Year and Each Month
Guide · Updated 29 October 2026
An employee hired through an employer of record in Guatemala costs you four things: 14 monthly salaries a year (12 months plus Bono 14 and Aguinaldo), a Q250 incentive bonus every month, employer contributions of 12.67% of ordinary salary, and the EOR service fee. A Q10,000 monthly salary costs about Q158,204 a year, or Q13,183.67 a month on average, before the service fee.
Last reviewed in October 2026 against the 2026 minimum wages published by the Ministry of Labour and the IGSS contribution rates. General information, not legal or tax advice.
The four parts of a Guatemala EOR bill
Salary and statutory bonuses. The gross monthly salary you agree with the employee, in quetzales, paid 12 times, plus Bono 14 and Aguinaldo of one month’s salary each. The salary must be at least the minimum wage for the work location and sector.
The incentive bonus. Q250 a month on top of salary, required by law for private-sector employees.
Employer contributions. IGSS 10.67% of salary, plus IRTRA 1% and INTECAP 1% where they apply, passed through at cost.
The EOR service fee. The provider’s charge for employing and paying the person, shown as its own line, plus any one-time item and any deposit.
Minimum wages in 2026
| Sector | Department of Guatemala | Rest of the country |
|---|---|---|
| Non-agricultural | Q4,002.28 | Q3,816.90 |
| Agricultural | Q3,791.20 | Q3,625.89 |
| Export and maquila | Q3,409.73 | Q3,221.10 |
Monthly amounts before the Q250 incentive bonus, which is paid on top. Source: Ministry of Labour (MINTRAB): 2026 minimum wages.
Contributions in 2026
| Contribution | Employer | Employee | Notes |
|---|---|---|---|
| IGSS (social security) | 10.67% | 4.83% | Illness and maternity, accidents, and pensions |
| IRTRA | 1% | — | Where it applies |
| INTECAP | 1% | — | Where it applies |
| Total | 12.67% | 4.83% | On ordinary salary; the Q250 incentive bonus is not part of the base |
Income tax (ISR) is withheld from the employee’s pay and is not an employer cost. Source: IGSS: contribution rates (in Spanish).
Three worked examples
The examples assume a full year of service, contributions of 12.67% on the 12 ordinary salaries, and Bono 14 and Aguinaldo of one month each. They exclude the EOR service fee, overtime and benefits.
| Monthly salary | Salaries, Bono 14 and Aguinaldo | Incentive bonus | Employer contributions | Annual employer cost | Monthly average |
|---|---|---|---|---|---|
| Q4,002.28 (minimum, non-agricultural, department of Guatemala) | Q56,031.92 | Q3,000.00 | Q6,085.07 | Q65,116.99 | Q5,426.42 |
| Q10,000 | Q140,000.00 | Q3,000.00 | Q15,204.00 | Q158,204.00 | Q13,183.67 |
| Q20,000 | Q280,000.00 | Q3,000.00 | Q30,408.00 | Q313,408.00 | Q26,117.33 |
In an ordinary month the cash cost is lower: for a Q10,000 salary, Q10,000 plus the Q250 incentive bonus plus Q1,267 in contributions, or Q11,517. It rises in July and December. To test your own figures, use the Guatemala labor cost calculator.
Other costs to plan for
- Overtime. Paid at 50% above the ordinary rate.
- Severance. A dismissal without just cause after probation costs one month’s salary for each year of service. Many employers set aside a monthly reserve for it.
- Benefits. Private health insurance, meal allowances and equipment for remote work are common.
- Salary reviews. Minimum wages are reviewed each year, with new rates from 1 January.
How to read an EOR quote for Guatemala
Ask to see the annual cost, not only an ordinary month: the 12 salaries, Bono 14, Aguinaldo, the incentive bonus and contributions, and the months in which the bonuses fall. A good quote also shows the service fee as its own line, states whether there is a deposit and when it is returned, and gives the dates on which you will be invoiced each month.
NNRoad does not publish a standard price for Guatemala. We review the role, the salary, the work location and the candidate’s right to work first, then send a written proposal that shows:
- the full employment cost, line by line, for a full year
- NNRoad’s service fee and any one-time item, listed separately
- any deposit and when it is returned
- the working calendar for invoices, paydays and bonus months
The yearly view: when the money is paid
| When | What is paid or filed |
|---|---|
| Every payday | Net salary, the Q250 incentive bonus and payslip |
| Every month | IGSS, IRTRA and INTECAP contributions; income tax withheld and paid to SAT |
| First half of July | Bono 14 |
| December (or December and January) | Aguinaldo |
| January | New minimum wages; annual income tax settlement for each employee |
What it costs to end an 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, calculated on the average of the last six months’ pay. In every case the employee also receives prorated Bono 14 and Aguinaldo and payment for untaken leave. We review the options with you before any conversation with the employee.
EOR or your own Guatemalan company?
A Guatemalan company or branch needs registration with the Mercantile Registry and the tax administration (SAT), a bank account, an accountant, and monthly payroll and tax filings. That fixed cost makes sense for a long-term team or when you invoice Guatemalan customers. For one or a few employees, or while you decide, an employer of record is faster and avoids the cost of setting up and running a company. Compare company, branch and employer of record.
Questions about Guatemala EOR cost
How much does an employer of record cost in Guatemala?
You pay the employment cost at cost plus the EOR service fee. For a full year, salary, the statutory bonuses, the incentive bonus and contributions come to roughly 30% to 36% more than 12 monthly salaries, depending on the salary. NNRoad quotes each hire after reviewing the role, with every line shown.
What are employer contributions in Guatemala in 2026?
IGSS 10.67% of salary, plus IRTRA 1% and INTECAP 1% where they apply, for a total of 12.67%. Employees pay IGSS 4.83%.
Is the Q250 incentive bonus mandatory?
Yes, for private-sector employees. It is paid every month on top of salary and is not part of the IGSS contribution base.
What is the minimum wage in Guatemala in 2026?
For non-agricultural work, Q4,002.28 a month in the department of Guatemala and Q3,816.90 elsewhere, plus the Q250 incentive bonus.
Why is the cost higher in some months?
Because Bono 14 is paid in July and Aguinaldo in December, or half in December and half in January. Your working calendar shows those months in advance.
Want the numbers for your own hire?
Send us the role, the salary and the work location and we will reply with a line-by-line annual estimate.
Related
How NNRoad employs and pays your Guatemalan hire.
The hiring process step by step.
Official sources: Ministry of Labour (MINTRAB): 2026 minimum wages; IGSS: contribution rates (in Spanish); IGSS: maternity benefit (in Spanish); Labour Code, Decree 1441 (in Spanish). Also: Decree 76-78 (Aguinaldo), Decree 42-92 (Bono 14) and Decree 78-89 as amended (Q250 incentive bonus). Reviewed October 2026; general information, not legal or tax advice.