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 + Q250 incentive bonus) × 12 - (IGSS × 12) - Q51,024 (FY2026 personal deduction)
ISR: Q0 - Q300,000 taxable = 5% ISR: Over Q300,000 taxable = Q15,000 + 7% on excess
Aguinaldo and Bono 14 are exempt from ISR when they equal one month's salary.
The Q250 incentive bonus (Decree 37-2001) is NOT part of the salary for IGSS contributions, but it IS added to the annual ISR base. It's paid in addition 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 + Q250 incentive bonus) × 12 - annual IGSS - Q51,024 personal deduction (Q48,000 + Q3,024, Decree 13-2026 for FY2026). The first Q300,000 of taxable income is taxed at 5%, and amounts above Q300,000 at 7%. Aguinaldo and Bono 14 are exempt.
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).