Guatemala Employment Guide

Guatemala Employment Guide

Guatemala, located in Central America, is known for its rich Mayan heritage, volcanic landscapes, and coffee production. With a population of approximately 18 million, its economy is driven by agriculture, manufacturing, and services. Employment in Guatemala is governed by the Labor Code, which outlines working hours, minimum wage, leave entitlements, and termination rules. Employment contracts are common, and employers must comply with social security, tax, and occupational safety regulations. The labor framework promotes fair treatment, anti-discrimination measures, and protection of workers’ rights.

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Currency

Guatemalan Quetzal (GTQ)

Capital

Guatemala City

Official language

Spanish

Salary Cycle

Monthly

Our Employment Guide in Guatemala

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Paid Time Off (PTO) Policy in Guatemala

Full-time employees become eligible for paid annual leave after completing twelve consecutive months of service. The entitlement is 15 working days per year, accrued at a rate of 1.25 days per month. Part-time staff receive pro-rated vacation time based on their working hours.

It's important to note that Guatemala's paid leave structure includes national public holidays in addition to annual PTO.

Practical Implementation for International Teams

Companies like SailGlobal have successfully implemented these policies by creating clear accrual tracking systems. For example, an employee starting in January would accumulate 1.25 days each month, reaching the full 15-day entitlement by December.

National Public Holidays in Guatemala

Guatemala recognizes 12 official public holidays annually:

  • New Year's Day (January 1)
  • Maundy Thursday
  • Good Friday
  • Holy Saturday
  • Labor Day (May 1)
  • Army Day (June 30)
  • Independence Day (September 15)
  • Revolution Day (October 20)
  • All Saints' Day (November 1)
  • Christmas Eve (half day, December 24)
  • Christmas Day (December 25)
  • New Year's Eve (half day, December 31)

Local Municipal Celebrations

Beyond national holidays, each municipality honors its patron saint with additional local holidays. This cultural aspect requires multinational employers to maintain flexible scheduling practices.

Best Practices for Leave Management

Effective PTO administration involves: maintaining accurate accrual records, providing clear policy documentation in Spanish, and respecting both national and local holiday observances. SailGlobal's approach includes digital tracking tools and cultural sensitivity training for managers overseeing Guatemalan teams.

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