Question 1

How is net salary calculated in Guatemala?

Accepted Answer

Net salary is calculated by subtracting mandatory deductions from gross salary. Main deductions are: IGSS (4.83% of salary), ISR (5% or 7% depending on bracket), plus the Q250 incentive bonus is added.

Question 2

How much does IGSS deduct from employees in Guatemala?

Accepted Answer

IGSS deducts 4.83% of the employee's base salary. This contribution covers illness, maternity, accidents, disability, old age, and survivorship (IVS) programs.

Question 3

How is income tax (ISR) calculated for salaried workers in Guatemala?

Accepted Answer

ISR is calculated on annual taxable income. The first Q48,000 is exempt. From Q48,001 to Q348,000 the rate is 5%. Above Q348,000 the rate is 7%.

Question 4

What is the bonificación incentivo in Guatemala?

Accepted Answer

The bonificación incentivo is an additional Q250 monthly payment established by Decree 37-2001. It is not part of the salary for IGSS or ISR calculations.

Question 5

What is Bono 14 and when is it paid?

Accepted Answer

Bono 14 is a benefit equal to one month's salary, payable in the first half of July. The calculation period runs from July 1 to June 30.

Question 6

How many vacation days are employees entitled to in Guatemala?

Accepted Answer

Every worker is entitled to 15 working days of paid vacation after each year of continuous service.

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