When you open a new business location in Guatemala, you have plenty of different factors to worry about. Two important ones for both your company and your employees are compensation and benefits. You must meet Guatemala’s compensation laws and come up with a Guatemala benefit management plan that includes statutory and additional benefits.
Globalization Partners can make a difference through Guatemala compensation and benefits outsourcing. We’ll use our existing subsidiary in Guatemala to save you time and money and prevent you from going through the lengthy subsidiary setup process. We’ll also source the best benefits for your company, pay employees according to local laws, and make sure you stay compliant.
Guatemala Compensation Laws
Guatemala’s compensation laws include a minimum wage that varies by sector. For example, as of January 2021, non-agricultural employees make 92.88 Guatemalan quetzals per day. Export-sector factories should pay employees 84.88 quetzals per day. Employees making the minimum wage should get a mandatory monthly bonus of 250 quetzals. Salaried employees should also receive two yearly bonuses that are mandatory and each equal to one month’s salary.
What Benefits Are Guaranteed in Guatemala?
Your Guatemala benefit management plan should include guaranteed benefits required by law to stay compliant. A good place to start is providing time off for the country’s 11 national holidays as well as 15 days of paid annual leave after working at least 150 days. Your employees are also guaranteed at least five paid sick days each year. Female employees get 12 weeks of paid maternity leave, while fathers should receive two days of paid paternity leave.
Dispersing Benefits Through Your Guatemala Benefit Management Plan
Giving out compensation and benefits doesn’t stop with the statutory minimums. We recommend including supplemental benefits in your Guatemala benefit management plan to attract the right employees to your position and encourage existing talent to stay with your company.
Guatemala utilizes a public/private healthcare system. In 2015, the medical inflation rate in Guatemala was 12%, and the cost is continuing to increase. Many individuals have poor lifestyle habits, which also inflates the price of healthcare. Employers may choose to provide private healthcare or give everyone a stipend that will help pay for medical care.
Restrictions for Compensation and Benefits
Before you can give out benefits and pay employees, you must incorporate in the country. Depending on the entity you choose and the location of your physical office space, it can take weeks or months to set up a subsidiary. Globalization Partners can take this time down to a few days. We’ll use Guatemala benefit and compensation outsourcing to handle the stress of compliance while you focus on running your company. Plus, you can use our existing subsidiary for your expansion instead of setting up your own.
Work With Globalization Partners
Globalization Partners will strive to help you make the most of your expansion through Guatemala compensation and benefits outsourcing. Get in touch with us today to learn more about how we can make a difference for your company and get started.