Guatemala hiring cost: Q5,000 → Q7,341.67/month
Hiring in Guatemala costs more than the salary you advertise. At Q5,000 the default (12.67% + Q250 + provisions + 8.33% reserve) is Q7,341.67 a month. Cash only is Q5,883.50. Not an IGSS figure.
With a Q5,000 base salary:
- Cash only (salary + 12.67% + Q250): Q5,883.50 (1.18×)
- + Provisions (aguinaldo, Bono 14, vacation): Q6,925.17 (1.39×)
- + 8.33% severance reserve: Q7,341.67 (1.47×)
Formula: cost = salary + (salary × 12.67%) + Q250 + provisions + optional reserve.
Formula
Employer contribution = Base salary × 12.67% (10.67% IGSS + 1% IRTRA + 1% INTECAP)
Cash only = Base salary + Employer contribution + Q250 incentive bonus
Provisions = Aguinaldo ÷ 12 + Bono 14 ÷ 12 + Vacation ÷ 12
Cost with provisions = Cash only + Provisions
Severance reserve (optional) = Base salary × 8.33%
Total cost = Cost with provisions + Reserve
Step-by-step example (Q5,000 defaults)
- Base salary: Q5,000
- Employer contribution 12.67%: 5,000 × 12.67% = Q633.50
- Incentive bonus: Q250 (Decree 37-2001; outside the IGSS base)
- Cash only: 5,000 + 633.50 + 250 = Q5,883.50
- Provisions: aguinaldo Q416.67 + Bono 14 Q416.67 + vacation Q208.33 = Q1,041.67
- + Provisions: Q5,883.50 + 1,041.67 = Q6,925.17
- + 8.33% reserve: 5,000 × 8.33% = Q416.50 → total Q7,341.67
Scenario table (same logic as the engine)
| Concept | Amount (Q5,000) |
|---|---|
| Base salary | Q5,000.00 |
| Employer contribution 12.67% | Q633.50 |
| Incentive bonus | Q250.00 |
| Cash only | Q5,883.50 ≈ 1.18× |
| Aguinaldo provision (÷12) | Q416.67 |
| Bono 14 provision (÷12) | Q416.67 |
| Vacation provision (salary/24) | Q208.33 |
| + Provisions | Q6,925.17 ≈ 1.39× |
| Severance reserve 8.33% | Q416.50 |
| + Severance reserve | Q7,341.67 ≈ 1.47× |
Why employer cost is about 1.4–1.5× salary
It is not a magic factor: it is the sum of fixed pieces. On Q5,000, the 12.67% employer contribution is Q633.50; the Q250 incentive bonus is paid on top and carries no IGSS; monthly provisions add Q1,041.67; and the optional 8.33% severance reserve adds Q416.50.
If you only look at the month's transfer (salary + contribution + Q250), you see ~1.18×. When you provision benefits and, if you want, severance, the real budget approaches 1.4–1.5×. The percentages match those used by the payroll calculator (CF-2).
This is an educational estimate with 2026 reference constants. It does not replace validation by HR, an accountant, IGSS, or SAT: special cases exist by economic activity, agreements, suspensions, or commissions. Aguinaldo and Bono 14 are paid in December and July; the monthly provision is for cash budgeting.
Frequently asked questions
Using the same 2026 constants as planilla: cash only (salary + 12.67% + Q250) ≈ Q5,883.50 (1.18×). With aguinaldo, Bono 14, and vacation provisions ≈ Q6,925.17 (1.39×). Add an 8.33% severance reserve ≈ Q7,341.67 (1.47×).
Because you add the 12.67% employer contribution (10.67% IGSS + 1% IRTRA + 1% INTECAP), the Q250 incentive bonus, monthly provisions (aguinaldo/12, Bono 14/12, vacation), and — if enabled — an 8.33% severance reserve.
No. The Q250 from Decree 37-2001 is outside the IGSS base (both the 4.83% employee and 12.67% employer rates). It still counts as an employer cost and is part of the worker's ISR base.
The employer. In this calculator (and in planilla) they sit inside the 12.67% employer reference: 10.67% IGSS + 1% IRTRA + 1% INTECAP. They are not deducted from the worker's salary.
They are paid in December (aguinaldo) and July (Bono 14). For budgeting, provisioning 1/12 each month avoids cash surprises. The "Cash only" toggle shows the outlay without that provision; "+ Provisions" matches planilla cost.
Related calculators
- Guatemala payroll (planilla): the full breakdown with net salary and provisions
- Guatemala social security: 4.83% labor and 12.67% employer contributions
- Guatemala net salary: what the worker receives after IGSS and ISR
- Guatemala bono 14: the July payment
- Guatemala Christmas bonus: the December payment