Guatemala is a country in Central America bordered by Mexico, Belize, Honduras, El Salvador, the Caribbean, and the Pacific Ocean. The country is considered a developing economy that is highly dependent on agriculture. Guatemala has 37 volcanoes, 4 of which are active.

The minimum wage in Guatemala is GTQ 2,959.24 per month. The standard workweek is 8 hours per day, 44 hours per week for 5.5 days. Overtime work is paid at 150% of the regular salary.

Parental Leave

Employees in Guatemala are entitled to 12 weeks of maternity leave, beginning 30 days before the expected due date. There is no provision for paternity leave.

Sick Leave

Employees can take sick leave that is paid by social security (or by the employer if the employee isn’t covered by social security). The amount of sick pay depends on the length of employment.

Paid Leave

There are 12 public holidays in Guatemala, and employees are entitled to 15 days of paid time off. Employees can request other types of leave for wedding and bereavement.

Process

The termination process in Guatemala depends on the employment contract and collective agreement. If an employee is terminated without just cause, the employer may owe severance pay.

Notice Period

Notice periods usually depend on the employment contract and collective agreements in place, or on the length of employment at the company:

• 0-6 months- 1 week notice
• 6 months - 1 year = 10 days notice
• 1-5 years = 2 weeks notice
• 5+ years = 1 month notice

Severance Pay

Employees who are terminated without just cause receive severance pay up to 12 months of wages. Employers cannot terminate union members, employees on maternity leave, and those in a collective dispute. If terminated in the cause of force majeure, the payment is usually between 2 days to 4 months of wages.

Full-time employees in Guatemala are entitled to a 13th and 14th month salary, each equivalent to 1 month’s salary. One is paid in July and the other in December.