COUNTRY GUIDE

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Guatemala

A short guide to building a dedicated offshore team in Guatemala

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At a glance

Capital
Capital:

Guatemala City

Official language
Official language:

Spanish

Population
Population:

18,19 million

Timezone
Timezone:

GMT-6

Developers
Developers:

10,000+

Currency
Currency:

Quetzal (GTQ)

Industry revenue
Industry revenue:

$234.1 million

Investment
Investments in IT sector

$14.7 million

global ALLSTARSIT
Capital:

Guatemala City

Language
Official language:

Spanish

Population
Population:

18,19 million

Timezone
Timezone:

GMT-6

Developers
Developers:

10,000+

Currency
Currency:

Quetzal (GTQ)

Industry revenue
Industry revenue:

$234.1 million

Industry size
Investments in IT sector

$14.7 million

Why build a team in Guatemala

Overview

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.

Top tech hubs

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Employment Conditions Overview

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:

  • Employment spanning 2 to 6 months qualifies an employee for one month of sick leave at 50% of their standard wage.
  • Employment spanning 6 to 9 months qualifies an employee for two months of sick leave, also at 50% of their regular earnings.
  • Employment of over 9 months entitles an employee to three months of sick leave, compensated at half of their usual salary rate.

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

Public 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:

  • Employees with up to 6 months of service: a minimum of 1 week's notice.
  • Employees with 6 months to 1 year of service: a minimum of 10 days' notice.
  • Employees with 1 to 5 years of service: a minimum of 2 weeks' notice.
  • Employees with over 5 years of service: a minimum of 1 month's notice.

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.

Grow your team in Guatemala with ALLSTARSIT

Setting up a separate business entity in every location where you plan to hire employees or a team is time-consuming and incurs high legal fees.

At the same time, navigating local labor laws and adhering to employee expectations can be a complex and challenging task, as is finding accurate and up-to-date employment information for all your potential hiring locations. Not to mention that tracking invoices and managing employee contracts through email and spreadsheets is messy and error-prone.

Compliance is critical in this context, and we must ensure that we follow local guidelines, particularly regarding taxes and legalities.

ALLSTARSIT streamlines the process by offering an integrated solution for finding and hiring employees, managing HR and payroll, and automating compliance across 20+ countries. All simple and hassle-free.

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What’s possible with ALLSTARSIT?

Staff Augmentation

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.

Dedicated Teams

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.

EOR / Contractor Management

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.

Staffing & Recruiting

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

HR Operations

Attract, hire, and retain top talent, building a motivated workforce that drives your business forward.

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Non-employee-employer liability

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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

Our solutions

Hire Employees / Contractors Solution Icon
Hire Employees / Contractors
Offer Corporate Benefits Solution Icon
Offer Corporate Benefits
Onboard & Retain Global Teams Solution Icon
Onboard & Retain Global Teams
Secure Office Space Solution Icon
Secure Office Space
Run Payroll Solution Icon
Run Payroll
Provide Health Insurance Solution Icon
Provide Health Insurance
Implement L&D Program Solution Icon
Implement L&D Program
Provide Health Insurance Solution Icon
Provide Health Insurance
Hire Employees / Contractors Solution Icon

Hire Employees / Contractors

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.

Offer Corporate Benefits Solution Icon

Offer Corporate Benefits

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.

Onboard & Retain Global Teams Solution Icon

Onboard & Retain Global Teams

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.

Secure Office Space Solution Icon

Secure Office Space

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.

Run Payroll Solution Icon

Run Payroll

Simplify your HR operations and ensure your employees receive timely and accurate paychecks with ALLSTARSIT's comprehensive payroll solution.

Provide Health Insurance Solution Icon

Provide Health Insurance

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.

Implement L&D Program Solution Icon

Implement L&D Program

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.

Customer Service Support Solution Icon

Customer Service Support

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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Guatemala

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Trusted by teams and partners

ALLSTARSIT Client's logo - NetAppALLSTARSIT Client's logo - OracleALLSTARSIT Client's logo - SapALLSTARSIT Client's logo - Johnson&Johnson ALLSTARSIT Client's logo - IntelALLSTARSIT Client's logo - ImpervaALLSTARSIT Client's logo - Cato NetworksALLSTARSIT Client's logo - TaboolaALLSTARSIT Client's logo - YotpoALLSTARSIT Client's logo - NetafimALLSTARSIT Client's logo - NetAppALLSTARSIT Client's logo - OracleALLSTARSIT Client's logo - SapALLSTARSIT Client's logo - Johnson&Johnson ALLSTARSIT Client's logo - IntelALLSTARSIT Client's logo - ImpervaALLSTARSIT Client's logo - Cato NetworksALLSTARSIT Client's logo - TaboolaALLSTARSIT Client's logo - YotpoALLSTARSIT Client's logo - Netafim

ALLSTARSIT office in Guatemala

ALLSTARSIT  Office Location
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