How is payroll calculated in Guatemala?
Payroll in Guatemala consists of gross salary minus mandatory deductions, plus the incentive bonus. Knowing exactly how much you'll receive is essential for personal financial planning.
Mandatory employee deductions
IGSS (Guatemalan Social Security Institute)
Employee IGSS = Base Salary × 4.83%
The IGSS contribution covers:
- EMA: Illness, Maternity, and Accidents
- IVS: Disability, Old Age, and Survivorship
ISR (Income Tax)
Taxable Income = (Salary × 12) + Aguinaldo + Bono 14 - (IGSS × 12)
ISR: Q0 - Q48,000 = Exempt ISR: Q48,001 - Q348,000 = 5% ISR: Over Q348,000 = 7%
The Q250 incentive bonus (Decree 37-2001) is NOT part of the salary for IGSS or ISR calculations. It's added directly to net pay.
Annual employee benefits
| Benefit | Amount | Period | Legal Basis | |---------|--------|--------|-------------| | Aguinaldo | 1 month salary | Dec 1 - Nov 30 | Decree 76-78 | | Bono 14 | 1 month salary | Jul 1 - Jun 30 | Decree 42-92 | | Vacation | 15 working days | Per year worked | Art. 130-137 | | Bonus | Q250/month | Monthly | Decree 37-2001 |
IGSS deducts 4.83% of your monthly base salary. For example, on a Q5,000 salary, the deduction is Q241.50. This covers illness, maternity, accidents, disability, old age, and survivorship programs.
ISR is calculated on your annual taxable income (salary × 12 + aguinaldo + bono 14 - annual IGSS). The first Q48,000 is exempt, Q48,001 to Q348,000 is taxed at 5%, and above Q348,000 at 7%.
Aguinaldo is paid between December 1-15 each year. It equals one full month's salary if you worked the entire period (Dec 1 - Nov 30), or proportional if you worked less.
Bono 14 is paid during the first half of July. The calculation period runs from July 1 to June 30 of the following year.
Every worker is entitled to 15 working days of paid vacation after each continuous year of work (Art. 130 of the Labor Code).