If in case you have a enterprise in Guatemala or are pondering of opening one within the nation, you have to familiarize your self and adjust to all relevant labor laws. Some labor legal guidelines in Guatemala are up to date periodically, whereas others have been on the books for a few years.
As well as, there are worldwide requirements, such because the Conventions of the Worldwide Labor Group to which Guatemala is a celebration, and that’s why we advocate having specialised authorized recommendation that will help you adjust to these obligations to keep away from probably incurring penalties, lawsuits and fines.
Likewise, complying with labor obligations in Guatemala is important to ensure the security, stability and well-being of staff, that are basic pillars for the right growth of an organization.
The 2023 labor obligations that firms in Guatemala should obey are as follows:
- Adjustment of minimal wages
- Fee of Christmas bonus for the yr 2022
- Employer’s annual report
- Wage guide closing
- Decoration ticket (boleto de ornato, a tax for sustaining public areas)
Every of those obligations is defined in additional element beneath.
1. Adjustment of Minimal Wages
Worker’s adjustment to the minimal wages happen yearly as per the Labor Code. In 2023, there are completely different financial districts and sorts of financial actions that must be adopted and set by the Governmental Agreement number 353-2022.
2. Fee of Christmas bonus for the yr 2022
As per Guatemalan Labor Code, Christmas Bonus might be paid in full throughout the first two weeks of December of every yr, or paid half in that date and the opposite half within the first two weeks of January.
3. Employer’s Annual Report
The employer’s annual report have to be filed electronically with the Ministry of Labor and Social Safety throughout the first two months of the yr.
4. Closing of the Wage Guide
The closing of the wage guide have to be carried out throughout the fiscal yr and comprise the report of all the corporate’s staff.
5. Decoration Ticket
It’s a tax that every one residents should pay yearly, with a view to contribute to the upkeep of their metropolis. The corresponding withholding have to be made for the cost of the decoration tickets of every worker, or else, the staff have to be requested for proof of cost of stated ticket throughout the first two months of every yr.
SEE ALSO: Authorized illustration in Guatemala
Different labor obligations in Guatemala on the subject of taxes that firms should file in the beginning of every yr embody:
- Earnings tax, submitting of the Annual Affidavit of Earnings – From Dependent Staff (SAT-1431) for every worker within the firm’s possession, throughout the first three months of the yr.
- Return of extra earnings tax – Withheld for every worker in a relationship of dependency (SAT-1331) throughout the first two months of the yr.
Along with the relevant labor, tax and reporting obligations at should happen in the beginning of every yr, firms should additionally perform the next:
- Fee of salaries and labor advantages – It’s the employer’s accountability to make sure that staff obtain their salaries and advantages throughout the time period agreed upon of their employment contracts (biweekly or on the finish of the month). This consists of the cost of additional time, paid go away, and bonuses, amongst others.
- Compliance with labor legal guidelines – Employers should adjust to all native and worldwide labor legal guidelines, in addition to with office security laws, and legal guidelines regarding non-discrimination and wage parity. This consists of offering a protected and wholesome work surroundings in addition to job coaching and worker growth.
- Registration of the employer and staff with the Guatemalan Institute of Social Safety – The employer should register their firm as an employer and all of its staff within the Social Safety Program, which in Guatemala is the Instituto Guatemalteco de Seguridad Social. The contributions are calculated from the staff total salaries.
- Registration of employment contracts – Inside a most interval of 15 days after signing the employment contract, these have to be registered with the Digital Registry of Particular person Employment Contracts (or Registro Electrónico de Contratos Individuales de Trabajo in Spanish).
- Compliance with go away and trip laws – Employers should adjust to paid and unpaid go away laws in addition to the annual trip interval to which all staff are entitled.
Relating to the change within the minimal wage for the yr 2023, employers should alter the wage of those that obtain the minimal wage to the brand new authorized minimal for the present yr, which has increased by 7% to $403 USD.
This authorized minimal wage varies in response to the: A. Financial District (decided by the Governmental Settlement that units the minimal wage) that in 2023 is split in A. Division of Guatemala, and B. The remainder of the departments of the nation, and C. Financial Exercise (additionally decided by the Governmental Settlement) which is split into three sorts: 1. Agricultural, 2. Non-agricultural, and three. export and meeting plant.
Biz Latin Hub might help you with Labor Obligations in Guatemala
At Biz Latin Hub, we offer built-in market entry and back-office providers all through Latin America and the Caribbean, with places of work in Bogotá and Guatemala, in addition to over a dozen different main cities within the area. We even have trusted companions in lots of different markets.
Our unrivalled attain means we’re ideally positioned to help multi-jurisdiction market entries and cross-border operations.
In addition to data about labor compliance, our portfolio of providers consists of hiring & PEO accounting & taxation, firm formation, checking account opening, and company authorized providers.
Contact us as we speak to seek out out extra about how we will help you to find prime expertise or in any other case do enterprise in Latin America and the Caribbean.
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