Employer of Record in Guatemala
Onboard, pay and manage employees in Guatemala without opening a local entity. We assume the legal risks and keep you 100% compliant with local labor law — you keep full operational control.
What is an EOR in Guatemala?
An Employer of Record is a third party that legally employs your workers in Guatemala on your behalf. Europortage becomes the legal employer — handling contracts, mandatory benefits, tax withholdings and terminations — while you direct your team's day-to-day work.
- Locally compliant employment contracts, drafted and signed in Guatemala
- Mandatory benefits and social contributions administered
- Payroll, taxes and filings handled by local experts
- Compliant terminations and severance managed end-to-end
When to use an EOR in Guatemala
Hire without the cost and delay of opening a company in Guatemala.
Onboard your candidates in days, not months.
Labor law in Guatemala is complex — we carry the risk for you.
Build a local team before committing to a legal structure.
What an employee really costs in Guatemala
Employer contributions total ~14.7%, plus two mandatory extra salaries per year (Aguinaldo + Bono 14).
| Employer contribution | Rate |
|---|---|
| IGSS — social security | 12.67% |
| INTECAP — training fund | 1% |
| IRTRA — recreation fund | 1% |
| Mandatory benefit | Amount |
|---|---|
| Aguinaldo (Christmas bonus) | 1 month salary (Dec) |
| Bono 14 | 1 month salary (Jul) |
| Vacation | 15 days after 1 year |
| Minimum wage | ~GTQ 2,500 / month |
Salary, contributions and our fee consolidated. Ask us for an exact estimate for your role.
Everything you need to know before hiring
A practical guide to labor law in Guatemala — maintained by our local experts.
Payroll, wages and taxes
Payroll runs bi-weekly (15th and 30th) or monthly, in quetzals paid to local bank accounts. Employees contribute IGSS 4.83% and progressive ISR of 5–7% above the exemption threshold.
Handled by Europortage
Every calculation follows current law and official rates — monitored continuously by our local team, so your payroll is always right.
Working hours and overtime
Standard work week of 44 hours over six days (36 hours for night shifts, 42 mixed). Overtime is capped at 12h/week and paid at 150%; Sundays and holidays at 200%. Time tracking is required for companies with 20+ employees.
Handled by Europortage
Working-time rules, overtime premiums and time-tracking obligations are applied automatically in every payroll cycle.
Mandatory and common benefits
Mandatory: Aguinaldo (December) and Bono 14 (July), each one full month of salary with no deductions, plus 15 days of paid vacation after one year. Meal vouchers, private health and transport allowances are common extras.
Handled by Europortage
We administer every mandatory benefit and help you build a competitive package for the local market.
Vacation, holidays and leave
12 national public holidays. Sick leave: employer pays the first 3 days, then IGSS covers 66% for up to 26 weeks. Maternity: 12 weeks paid (IGSS 66% + employer top-up).
Handled by Europortage
Leave balances, public holidays and statutory licenses are tracked for you — nothing slips through.
Notice and severance
Notice of 30 days after one year of service (minimum 15 days below that) or pay in lieu. Severance of one month's salary per year of service applies to terminations without just cause.
Handled by Europortage
Terminations are the riskiest moment in LATAM employment. Our legal team runs the entire process cleanly for both sides.
This guide is provided for context only. When hiring through Europortage's EOR service, all payroll, taxes, contributions, contracts and compliance are handled directly by our team.
EOR vs. entity setup vs. contractors
Employer of Record
Hire fast and stay 100% compliant, without opening a company.
- Fast onboarding through our local structure
- Very low risk — compliance carried by Europortage
- Payroll, benefits and taxes included
- Best for hiring fast and testing the market
Entity setup
Your own company in Guatemala, with full control and full responsibility.
- Slow to start — registration, banking, tax setup
- Medium risk — compliance carried by you
- Best for large permanent operations
Independent contractor
Fast to start, but risky if the relationship looks like employment.
- Quick to engage
- High risk — misclassification penalties
- Best for short, truly independent projects
Hiring in Guatemala, answered
What are my options to hire workers in Guatemala?
Three routes: hiring contractors (fast but with reclassification risk), opening a local entity (months of setup and ongoing costs), or using an EOR like Europortage — the fastest compliant option.
How much does it cost to employ someone in Guatemala?
Plan for ~14.7% in contributions plus two extra monthly salaries per year (Aguinaldo and Bono 14) and vacation accruals.
What does "Employer of Record" mean in Guatemala?
Europortage (or our vetted local partner) becomes the legal employer of your talent in Guatemala: contracts, payroll, contributions and filings run under our responsibility, while you manage the day-to-day work.
Do employees get all their rights under an EOR?
Yes — employees hired through Europortage receive the complete set of statutory rights in Guatemala: registered contract, mandatory bonuses, paid vacation, social security coverage and severance protections.