Guatemala flag Guatemala: Operating a Business in Guatemala

Work conditions in Guatemala

The Active Population in Figures

201820192020
Labour Force 6,690,0596,879,1346,410,911

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 64.16%64.44%64.71%
Men activity rate 88.26%88.26%88.23%
Women activity rate 41.48%41.95%42.45%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
45 hours
Retirement Age
65 years
Working Contracts
The majority of the Guatemalan workers do not have a work contract, they are part of the informal sector. For the remainder, there are 3 types of written contracts which have to be signed in triplicate: one copy for the employee, one copy for the employer and one copy has to be remitted to the administrative department of labor.  See Ministry of Labor (in Spanish)website (in Spanish).

- Open ended contract
- Temporary contract
- A contract for a specific project or the length of the contract is dependent on the completion of a specific project.

There are also verbal contracts which are valid for domestic services, labor in fields and temporary work not exceeding 60 days, however, the employer has to provide a document with the date of commencement  of work and the salary amount.
Refer to the Labor Code

Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
GTQ 2,643.21 per month for non-agricultural activities (2016).
Average Wage
Gross average monthly wage of men: GTQ 2,086 (source: ILO, 2011);
Gross average monthly wage of women: GTQ 1,707 (source: ILO, 2011).
Social Contributions
Social Security Contributions Paid By Employers: 10.67%
Social Security Contributions Paid By Employees: 4.83%

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Social Partners

Social Dialogue and Involvement of Social Partners
The two most representative Unions are: The Central Agricultural Workers, Guatemala Confederation of Syndicate Unity  (CUSG) and the Central Guatemalan Workers (C.G.T.G.), Guatemalan Workers Union Syndicate (UNSITRAGUA).
Unions
Guatemala unions website
Unionisation Rate
It has to be noted that the unions do not have a lot of power; only 8% of employees in the formal sector belong to a union.
Labour Regulation Bodies
Ministry of Labor and Social Security

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Latest Update: November 2022

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