Payroll in Guatemala
Get your Guatemalan payroll's IGSS contributions, aguinaldo, and Bono 14 right from the first payslip, so a budget built for a single 13th month never comes up a full month short.
Payroll in Guatemala: What You Need to Know
IGSS employer contribution runs at 10.67% of gross salary plus INTECAP at 1% and IRTRA at 1%, both employer-only, bringing total mandatory employer payroll burden to roughly 12.67%. Aguinaldo, one month's salary, is paid by December 15, alongside Bono 14, a second full month's salary paid by July 15 under Decreto 42-92, calculated on average salary over the prior July 1 to June 30 period. Vacation runs 15 working days per year after 12 months of continuous service. Severance under C贸digo de Trabajo Article 82 runs one month's salary per year of service for unjustified dismissal, payable after 3 or more months of continuous indefinite-term employment, calculated on the average of the last 6 months' salary including the monthly aliquot of aguinaldo and Bono 14. There is no general legal mandate requiring a funded severance trust for private-sector employers, with indemnizaci贸n typically treated as a contingent liability employers accrue for rather than a pre-funded fideicomiso. ISR is withheld by SAT on net taxable annual income after a Q48,000 personal deduction, 5% up to Q300,000 and 7% on the excess plus a fixed Q15,000, with minimum-wage earners now exempt under Decreto 13-2026.
Key Requirements
IGSS employer contribution at 10.67% of gross salary plus INTECAP at 1% and IRTRA at 1%, both employer-only, bringing total mandatory employer payroll burden to roughly 12.67%
Aguinaldo, one month's salary paid by December 15, alongside Bono 14, a second full month's salary paid by July 15 under Decreto 42-92, calculated over the prior July 1 to June 30 period
Vacation, 15 working days per year after 12 months of continuous service
Severance under C贸digo de Trabajo Article 82, one month's salary per year of service for unjustified dismissal, payable after 3 or more months of continuous indefinite-term employment
No general legal mandate requiring a funded severance trust for private-sector employers, with indemnizaci贸n treated as a contingent liability employers accrue for rather than a pre-funded fideicomiso
ISR withheld by SAT on net taxable annual income after a Q48,000 personal deduction, 5% up to Q300,000 and 7% on the excess plus a fixed Q15,000, with minimum-wage earners exempt under Decreto 13-2026
Common Challenges
Guatemala effectively has 14 months of pay obligation, not 13
Foreign employers modeling a single 13th-month budget will be short by a full month's payroll, since Bono 14 in July is a genuinely separate, additional bonus from the December aguinaldo, not a renamed version of it.
Severance isn't backed by a mandatory trust the way some research assumes
There's no statutory fideicomiso requirement for private employers. Indemnizaci贸n is a contingent liability companies typically accrue for internally, so a foreign parent shouldn't assume a funded escrow protects it from exposure.
The severance base quietly bakes in both bonuses, inflating the real cost
Because the calculation uses the average of the last 6 months' salary con ventajas, including the monthly aliquot of aguinaldo and Bono 14, the effective severance cost is higher than a simple one-month-per-year headline suggests.
How NavviPal Helps
IGSS, INTECAP, and IRTRA contribution calculation and remittance, budgeted against the real roughly 12.67% employer burden
Aguinaldo and Bono 14 processing on their December 15 and July 15 deadlines, each calculated against the correct accrual period
Severance calculation under Article 82 using the correct con ventajas base, including the aguinaldo and Bono 14 aliquots
ISR withholding through SAT's current brackets, correctly applying the Decreto 13-2026 minimum-wage exemption where it qualifies
Frequently Asked Questions
Does Guatemala pay 13 or 14 months of salary-equivalent obligations a year?
Effectively 14. Aguinaldo, one month's salary, is paid by December 15, and Bono 14, a genuinely separate second full month's salary under Decreto 42-92, is paid by July 15. Foreign employers modeling a single 13th-month budget will be short by a full month's payroll.
Is severance in Guatemala backed by a mandatory funded trust?
No. There is no statutory fideicomiso requirement for private-sector employers. Indemnizaci贸n is a contingent liability companies typically accrue for internally, so a foreign parent shouldn't assume a funded escrow protects it from exposure.
Does Guatemala's severance calculation include the annual bonuses?
Yes. The severance base uses the average of the last 6 months' salary con ventajas, including the monthly aliquot of aguinaldo and Bono 14, so the effective severance cost is higher than a simple one-month-per-year headline suggests.
What is the total mandatory employer contribution burden in Guatemala?
IGSS employer contribution runs at 10.67% of gross salary, plus INTECAP at 1% and IRTRA at 1%, both employer-only, bringing the total mandatory employer payroll burden to roughly 12.67%.
Are minimum-wage earners exempt from income tax withholding in Guatemala?
Yes, as of Decreto 13-2026. ISR is withheld by SAT on net taxable annual income after a Q48,000 personal deduction, 5% up to Q300,000 and 7% on the excess plus a fixed Q15,000, but minimum-wage earners are now exempt under this 2026 decree.
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