Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
GTQ Q (Guatemalan Quetzal)
Employer contributions
~10.67% employer IGSS + 1% INTECAP + 1% IRTRA = ~12.67%
Minimum wage
GTQ 4,066.90/month (2026) ≈ $532/month
Payment frequency
Monthly / Bi-weekly
Calendar year (Jan 1 - Dec 31)
Capital
Guatemala City
Timezone
CST (GMT-6)
Short answer: The minimum wage in Guatemala in 2026 is GTQ 4,066.90 a month (about $532). A typical full-time salary is around GTQ 6,000 a month ($785). Professionals paid as contractors through Ontop earn a median of $900 a month (233 active contracts, September 2026).
| 2026 figure | Local currency | USD |
|---|---|---|
| Minimum wage, monthly | GTQ 4,067 | $532 |
| Minimum wage, hourly | GTQ 21.33 | $2.79 |
| Average salary, monthly (approx.) | GTQ 6,000 | $785 |
| Median contractor pay through Ontop, monthly | n/a | $900 |
Minimum wage details: Acuerdo Gubernativo 256-2025, in force 2026-01-01. Non-agricultural: CE1 (Guatemala dept) Q4,252.28/mo = Q4,002.28 base + Q250 Bonificacion Incentivo; CE2 (rest of country) Q4,066.90 = Q3,816.90 + Q250 (lowest general figure, used as amount). Agricultural +5.5%, export/maquila +4% (separate, lower tables). Range non-agri: 4,066.90-4,252.28.. USD figures use exchange rates from 1 October 2026. Updated October 2026.
Next step: estimate the full cost of an employee.
An employee in Guatemala is paid 14 times a year, not 12. The law requires two full extra salaries: the Aguinaldo in December and the Bono 14 in July. Add social security contributions and severance that grows with every year of service, and the monthly salary you agree on is only part of the commitment.
For companies without a Guatemalan entity, that commitment also means registering with SAT and IGSS before the first payday. Many teams skip all of it by engaging professionals as contractors, which is the right structure when the work is independent.
Take a gross salary of GTQ 10,000 a month. Employer contributions add about GTQ 1,267 (10.67% IGSS, 1% INTECAP, 1% IRTRA), for a monthly cost of roughly GTQ 11,267. Then the annual obligations:
Independent work in Guatemala runs on a Contrato de Servicios Profesionales. Ontop is your contractor of record: a compliant contract (yours or an Ontop template), help classifying the role correctly, and monthly payment into the contractor's Ontop Global Account in USD, which spares them the quetzal conversion on your side. It costs from $49 per contractor per month, with no local entity.
Companies paying contractors in Guatemala through Ontop pay a median of $900 a month (the middle half earn between $780 and $2,500), across 233 active contracts in September 2026. These figures come from Ontop's own book, not a market survey. Compare roles and countries with the contractor cost calculator.
A services contract only holds when the person controls how and when they work. If you set their schedule, supervise their daily tasks and expect them to work for no one else, Guatemalan labor law treats that as employment, with the bonuses and severance that come with it. Hire that person as an employee. For everyone else, here is how the contractor alternative to an employer of record works.
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~GTQ 11,267 total
/month
For a gross salary of
GTQ 10,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~10.67% employer IGSS + 1% INTECAP + 1% IRTRA = ~12.67%
Mandatory extras
Aguinaldo + Bono 14
Monthly admin
Monthly payroll - IGSS + INTECAP + IRTRA by month-end - SAT withholding - annual March
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
+
A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
+
Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~GTQ 11,267 total
Example gross salary
GTQ 10,000 gross/month
~GTQ 7,917 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~GTQ 1,267 SS
Employer contributions on that salary
Employer contributions
~10.67% employer IGSS + 1% INTECAP + 1% IRTRA = ~12.67%
Employee contributions
~4.83% employee IGSS + income tax (ISR)
Total cost above gross
~12.67% above gross (IGSS)
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~GTQ 6,000
Per month
Guatemala City
GTQ 8,000 - 25,000
~40%
Quetzaltenango
GTQ 5,000 - 15,000
~10%
Monthly gross. National average salary per year:
~GTQ 72,000
Minimum wage
GTQ 4,066.90/month (2026) ≈ $532/month
Paid:
Monthly
Extra pay
Aguinaldo + Bono 14
Each 1 month salary mandatory (Aguinaldo Dec + Bono 14 July)
December and July
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0% up to GTQ 48,000 / 5% / 7%
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by last day
Social security payments
March 31 (annual ISR return)
Income tax
By January 31
Employee tax certificate
Constancia de Retenciones
March 31
Annual return
Declaracion Anual ISR (D-1)
Late payment penalties
Late IGSS: 12% annual; late ISR: 10% + 2% monthly interest
Who collects what
SAT
Income tax (ISR)
IGSS
Social security
Ministerio de Trabajo y Prevision Social
Labour law
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Vacaciones
15 working days/year (after 1 year)
Public holidays
~13 public holidays
Sick leave
Licencia por Enfermedad
IGSS pays from day 4 at 66.67%
Maternity leave
12 weeks (84 days) maternity
Full pay employer first 30 days; IGSS from day 31
The contracts you can use, and what ending an employment relationship costs.
Permanent
Contrato por Tiempo Indefinido
Fixed term
Contrato a Plazo Fijo
Independent contractor
Contrato de Servicios Profesionales
Collective agreements
Pacto Colectivo de Condiciones de Trabajo
Ending employment
Indemnizacion por tiempo servido
How it is calculated
1 month/year of service
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Aguinaldo and Bono 14 Miscalculation
Risk Level: HIGH
Guatemala mandates two separate 1-month bonuses: Aguinaldo (December, Labor Code) and Bono 14 (July, Decree 42-92). Both are calculated on ordinary salary earned in the relevant semester - not annual average. Errors in the calculation base generate Ministry of Labour sanctions.
IGSS Contribution Base Including Bonuses
Risk Level: HIGH
Guatemala's IGSS contributions apply to ordinary salary only - not Aguinaldo or Bono 14. However, regular allowances and shift differentials that form part of ordinary salary must be included. Employers who exclude ordinary allowances from the IGSS base accumulate retroactive contributions.
1 of 6
Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
+
Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
+
Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
+
Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
+
Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
+
Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
+
When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
+
Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.