When you open a new business location in Guatemala, you have plenty of different factors to worry about. Compensation and benefits are top priorities for both your company and your team.
You must meet Guatemala’s compensation laws and come up with a benefits management plan that includes statutory and additional benefits. Here are a few important things to consider when building a benefits plan in Guatemala.
Guatemala compensation laws
Guatemala’s compensation laws include a minimum wage that varies by sector and by the economic region where the workplace is located. There are 2 economic districts in Guatemala: Economic District One (CE1), which contains the Department of Guatemala, and Economic District Two (CE2) which contains the remaining departments.
Guaranteed benefits in Guatemala
Your Guatemala benefits 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 national holidays as well as 15 days of paid annual leave after working at least 150 days.
Employees are also guaranteed at least 5 paid sick days each year. Expecting employees get 12 weeks of paid maternity leave, while fathers receive 2 days of paid paternity leave.
Guatemala benefits management
Giving out compensation and benefits doesn’t stop with the statutory minimums. We recommend including supplemental benefits in your Guatemala benefits management plan to attract the right employees to your open roles and encourage existing talent to stay with your company.
Guatemala utilizes a public/private healthcare system. Employers may choose to provide private healthcare or give employees a stipend that will help pay for medical care.
Restrictions for benefits and compensation
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, which is why many companies prefer to partner with an Employer of Record (EOR).
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.