Guatemala City
Spanish
18,19 million
GMT-6
10,000+
Quetzal (GTQ)
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$234.1 million
$14.7 million
Guatemala City
Spanish
18,19 million
GMT-6
10,000+
Quetzal (GTQ)
$234.1 million
$14.7 million
Guatemala, nestled in the heart of Central America, is an emerging force in the information technology sector with over 700 IT companies carving out a new economic frontier. As the largest economy in the region, it boasts a robust gross domestic product (GDP) of $94.7 billion as of 2022, showcasing its growing influence and potential.
With a strategic geographic location bridging North and South America, Guatemala is poised to become a key player in the regional tech industry. Its burgeoning IT sector is supported by a proactive business environment and a developing talent pool, geared towards embracing the digital transformation.
While the tech ecosystem is in its nascent stages, the rise in local IT firms signals a significant shift towards a more diversified economy. Guatemala’s ambition to harness the digital revolution is evident as it begins to position itself as a contender in the competitive global IT market.
The country's commitment to advancing its technological infrastructure suggests a future where innovation and digital proficiency drive economic growth. For businesses looking to tap into Central America's tech potential, Guatemala represents an untapped market brimming with opportunities.
ALLSTARSIT takes care of everything for you – we have a 360° approach with a full recruitment cycle
Payroll Cycle
In Guatemala, the compensation for employees is structured to be paid on varying schedules, including monthly, bi-monthly, weekly, daily, or hourly intervals, as dictated by the nature of the work and the stipulations outlined within the employment contract. There is no universally mandated payroll cycle across all firms; instead, the frequency of salary payments—whether monthly, bi-weekly, or daily—is determined by the type of employment and is explicitly defined in the employment agreements. Companies are obligated to adhere to these designated payment intervals, which align with the Guatemalan financial year that spans from 1st January to 31st December.
Employer Taxes
12.67%
Overtime Pay
Any work performed beyond 44 hours in a single week qualifies as overtime and is compensated at a rate of 150% of the standard pay.
Paid Leave
An employee is entitled to 15 days of holiday upon reaching 12 consecutive months of employment with the employer.
Should any of these days remain unutilized, they will not be rolled over to the next period and will be forfeited. The holiday pay is calculated at 130% of the regular salary, which is to be disbursed to the employee prior to the commencement of their leave.
Sick Leave
Compensation for sickness will be disbursed by the Guatemalan Institute of Social Security (IGSS) according to its guidelines or by the employer in instances where IGSS benefits are inapplicable to the employee, the nature of the illness, or the specific injury.
The duration and computation of sick leave remuneration are determined by the length of the employee's service:
Furthermore, employers are permitted to provisionally assign someone to fulfill the duties of the absent employee, with the understanding that this arrangement will conclude once the original employee is able to return to work.
Public and Provincial Holidays
Notice Period
Notice periods, as stipulated by the Employment Contracts Act, can be mutually agreed upon by the employer and the employee, provided they do not exceed six months. Additionally, collective agreements might specify notice periods. Should these periods diverge from those prescribed by law, both the employer and the employee are obliged to adhere to the timelines set out in the collective agreement.
The required notice period is contingent upon the duration of employment and the grounds for termination. In cases where the employer initiates the termination, the following notice periods apply:
13th Month Bonus
Employees on a salary should be granted two annual bonuses, each corresponding to one month's worth of their salary, effectively serving as a 13th and 14th-month salary payment. The "Bono 14" should be distributed in July, while the Christmas bonus is to be issued in December.
Establishing a standalone business operation in Guatemala for team development can be a complex and costly process, often resulting in significant legal expenses.
Navigating the intricacies of Guatemalan labor laws and meeting employee expectations demands a deep dive into a web of complex and demanding challenges. This task is made even more challenging by the need to secure accurate and up-to-date employment information specific to Guatemala. Furthermore, the administration of contracts and the tracking of invoices via emails and spreadsheets are prone to confusion and errors.
In this scenario, ensuring compliance is crucial, requiring a rigorous adherence to Guatemalan regulations, particularly in matters of taxes and legal obligations.
ALLSTARSIT offers a streamlined solution to these challenges by providing a comprehensive service for the identification and recruitment of employees in Guatemala, managing HR and payroll, and automating compliance. Our service simplifies the entire process, making it straightforward and free from complications, thereby enabling smooth and efficient operations.
Choose the right expert professionals required for your specific project, saving time and wasted effort.
This service enables software development companies worldwide to meet any technical needs outside their core skill set by adding specialized staff on demand while retaining control of the project's specifications and scope.
Establish R&D / Tech Support / QA & Testing / DevOps / Data Entry Centers in your chosen location.
Forget about investing in facilities, equipment, technology, or human resources. We manage all necessary operations as your specialist. This can help you save money and resources, all while reducing frustration and simplifying internal processes.
Use ALLSTARSIT as your EOR / CM to easily hire employees in new countries without setting up a legal entity.
We act as the employer for your new hire, handling all HR, payroll, tax, and compliance requirements on your behalf, while you maintain control of their workload.
Tap into a wide talent pool of top-tier engineers from our database. We will find the right fit for your business and help you reduce your hiring timeline.
Headhunting
Signing bonuses
Vacancy promotion
Free replacement
Preliminary interviews
HR interviews
Attract, hire, and retain top talent, building a motivated workforce that drives your business forward.
Non-employee-employer liability
Managing tech equipment
Retention and risk analysis
Performance reviews
Compensation revision & expense returns
1:1 meetings (180-degree)
Monthly reports
Performance reviews & periodic surveys
Ongoing client and expert support
Expand your business globally and hire employees or contractors quickly and efficiently by partnering with ALLSTARSIT, who can act as your EOR/CM and handle the administrative and legal aspects of their employment while you control their workload.
Improve your employees' well-being and job satisfaction by offering them a range of corporate benefits through ALLSTARSIT, including wellness consultant sessions, music lessons, workations, gym compensation, and employee recognition programs.
Keep track of your team's progress and satisfaction with ALLSTARSIT's monthly reports and periodic surveys, allowing you to identify any issues and make necessary adjustments to retain top talent.
Enhance your employees' working experience by offering them the possibility of working from an office or securing a seat in a premium co-working space shared area through ALLSTARSIT.
Simplify your HR operations and ensure your employees receive timely and accurate paychecks with ALLSTARSIT's comprehensive payroll solution.
Increase your employees' satisfaction and productivity by providing them with the peace of mind that comes with having access to a reliable and comprehensive health insurance package made possible by ALLSTARSIT.
Invest in your employees' professional development by implementing a comprehensive L&D program that includes access to online education platforms, language classes, and technical meetups, courtesy of ALLSTARSIT.
Build a Customer Care or a Customer Support team to ensure that your business excels in providing exceptional assistance to your customers.
Whether you need a team of professionals that can handle relationship building and product knowledge or a group of Tier 1/2/3 engineers that can help with troubleshooting and other technical issues, ALLSTARSIT can help you find, hire and manage them.
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