COUNTRIES, North America
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HRsolution » COUNTRIES » Guatemala

  1. Population

    Guatemala has approximately 18 million inhabitants (as of 2023). The population is predominantly composed of Mestizos (mixed European and Indigenous descent) and Indigenous groups, primarily from various Maya communities, which make up about 40% of the population.

  2. Capital

    The capital of Guatemala is Guatemala City (Ciudad de Guatemala), which is the largest city in the country and serves as its political, economic, and cultural center.

  3. Economic Power

    Guatemala’s economy relies heavily on agriculture, particularly the cultivation and export of coffee, bananas, sugar, and vegetables. The export of textiles and tourism also play significant roles. Guatemala has the largest GDP in Central America, but its GDP per capita (around 5,000 USD in 2022) lags behind other countries in the region. The country faces significant challenges with social inequality and poverty.

  4. Culture

    Guatemalan culture is a blend of Indigenous Maya traditions and Spanish colonial influences. Festivals and religious ceremonies are deeply ingrained in Guatemalan culture, with Catholicism, often mixed with Maya rituals, playing a central role. Traditional clothing, handicrafts, and music (particularly Marimba music) are characteristic of Guatemalan culture. Historical Maya ruins, such as Tikal, are of great significance.

  5. Currency

    The currency of Guatemala is the Guatemalan Quetzal (GTQ). One Quetzal is equivalent to approximately 0.13 USD (as of 2023).

  6. Health Insurance and Social Security System

    Guatemala has a public social security system managed by the Instituto Guatemalteco de Seguridad Social (IGSS). It provides coverage for healthcare, pensions, and disability. However, only a portion of the workforce, mostly in formal employment, is covered. The public health system is underfunded and inefficient, leading many Guatemalans to rely on private insurance or healthcare services.

  7. Employer Costs

    Employers in Guatemala are required to contribute approximately 12.67% of an employee’s salary to social security, pensions, and disability insurance. These costs vary by industry and type of employment. Employers may also provide additional benefits, such as transportation or meals.

  8. Salary and Bonuses

    The minimum wage in Guatemala varies by sector. In 2023, the minimum wage was between 3,000 GTQ and 3,500 GTQ per month, depending on the industry. It is common for employees in Guatemala to receive a 13th-month salary (Aguinaldo) in December and a 14th-month salary (Bono 14) in July. These bonuses are legally required.

  9. Payroll

    Payroll deductions include contributions for social security and income tax. Guatemala’s income tax is progressive, ranging from 5% to 7% depending on income levels. Employees also contribute to social security and other mandatory programs.

  10. Public Holidays

    Guatemala observes several public holidays, including:

  • New Year’s Day (January 1)
  • Good Friday and Easter Monday (variable during Holy Week)
  • Labor Day (May 1)
  • Independence Day (September 15)
  • Revolution Day (October 20)
  • All Saints’ Day (November 1)
  • Christmas (December 25)

There are also regional holidays and traditional festivals.

  1. Working Hours

    The standard working hours in Guatemala are typically 8 hours per day and 44 hours per week for daytime work. Night work is limited to 36 hours per week. Overtime must be paid with a surcharge of at least 50%.

  2. Vacation

    Employees are entitled to a minimum of 15 days of paid vacation per year after completing one year of service. This statutory minimum can be expanded through collective bargaining agreements or individual employment contracts.

  3. Sick Leave

    In case of illness or injury, the IGSS pays sick leave benefits, which usually amount to 66% of the employee’s regular salary, depending on the duration of the illness. Employers are required to continue paying employees for the initial days of sickness.

  4. Termination/Severance

    Termination notice periods and severance payments depend on the type of dismissal and the length of employment. Workers dismissed without justified cause are entitled to severance pay, which typically amounts to one month’s salary for each year of service. There are also regulations regarding dismissal for economic or personal reasons, which ensure fair severance payments and notice periods.

Guatemala presents a dynamic yet challenging environment for work and living, with widespread social inequalities and economic disparities. At the same time, the country’s rich cultural diversity shapes everyday life in fascinating ways.

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