How to Calculate Your Net Salary in Guatemala
Your net salary is the amount you actually receive after mandatory deductions. In Guatemala, the main deductions are IGSS (social security) and ISR (income tax).
Mandatory Deductions
IGSS (4.83%)
The Guatemalan Social Security Institute deducts 4.83% from your gross monthly salary:
- EMA (Illness, Maternity, Accidents): 2%
- IVS (Disability, Old Age, Survivors): 1.83%
- PECEF: 1%
ISR (Income Tax)
ISR is calculated on your annual taxable income:
Taxable income = Gross annual salary - Q48,000 (exemption) - Annual IGSS contributions
ISR brackets:
- Up to Q300,000: 5%
- Over Q300,000: Q15,000 + 7% on excess
Labor Benefits
Bono 14
Bono 14 is a benefit equal to one monthly salary, paid in July. It accrues from July 1 to June 30 of the following year.
Aguinaldo (Christmas Bonus)
Aguinaldo also equals one monthly salary and is paid in December. It accrues from December 1 to November 30 of the following year.
When calculating your real monthly income, remember to prorate Bono 14 and Aguinaldo. This adds approximately 2/12 of your salary to your effective monthly income.
Calculation Example
Gross salary: Q10,000/month
| Item | Monthly | Annual | |------|---------|--------| | Gross salary | Q10,000 | Q120,000 | | IGSS (4.83%) | Q483.00 | Q5,796.00 | | ISR | Q276.17 | Q3,314.00 | | Net salary | Q9,240.83 | Q110,890.00 | | Bono 14 (prorated) | Q833.33 | - | | Aguinaldo (prorated) | Q833.33 | - | | Total with benefits | Q10,907.50 | - |
Mandatory deductions include IGSS (4.83%) and ISR. For a Q10,000 monthly salary, the total deduction is approximately Q759 (Q483 IGSS + Q276 ISR).
No. Bono 14 and Aguinaldo are exempt from ISR under Guatemalan law. However, IGSS is still deducted from the monthly salary used as the basis for their calculation.
Bono 14 is paid between July 1 and July 15 each year. The accrual period runs from July 1 to June 30 of the following year.
The personal exemption (Q48,000/year) and IGSS contributions are subtracted from gross annual salary. Then 5% is applied up to Q300,000, and 7% on any excess.
All employees in a dependent work relationship must pay IGSS. However, if your taxable income is negative after deductions, you do not pay ISR.