Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language



Quetzal (GTQ)

Payroll Frequency


Public Holidays

11 days

Employer Taxes


Cost of Living Index

$$ (#81 of 140, 2023)

Statutory Leave

15 days

Sick Leave

Up to 6 months

Maternity Leave

84 days

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

The minimum wage in Guatemala is GTQ 3,416.38 per month.

Overtime Pay

The standard work week in Guatemala is between 40 and 44 hours per week. Employees can work an additional 4 hours per day at 150% of their standard rate. 

Overtime work on holidays is paid at a rate of 200%.

Additional Pay

Thirteenth and fourteenth-month salaries are mandatory in Guatemala. 

Payroll Cycle

For all Borderless customers, employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

  • 10.67%: Social Security 
  • 1%: Workers Recreational Institute 
  • 1%: Professional Training Institute 

Employee Costs & Taxes

  • 4.83%: Social Security 
  • 5–7%: Personal Income Tax

Employment Information

Termination Process

Termination processes in Guatemala are complex and rely on the negotiated contracts or collective agreements in place. In general, termination after the probation period must be done for just cause, such as disciplinary dismissal or low performance. 

Notice period

The notice period in Guatemala depends on the length of service, ranging from one week to one month. 

Probation Period

The average probation period in Guatemala is two months. 

Severance Details

If an employee is terminated without just cause, the employer may owe up to 12 months of salary as severance pay. 

For layoffs due to reasons beyond the control of the employer, a severance package will be negotiated covering anywhere between two days and four months of pay.

Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo