Question 1

What does a complete payroll include in Guatemala?

Accepted Answer

A complete payroll includes: base salary, incentive bonus (Q250), IGSS deduction (4.83%), ISR, and employer provisions for IGSS (12.67%), aguinaldo, bono 14, and vacation.

Question 2

How much does an employee cost the employer in Guatemala?

Accepted Answer

The total cost of an employee is approximately 1.45 to 1.55 times the base salary, including employer IGSS, aguinaldo, bono 14, and vacation provisions.

Question 3

What is the incentive bonus?

Accepted Answer

It is a monthly payment of Q250 established by Decree 37-2001. It is not subject to IGSS or ISR and is mandatory for all private sector employees.

Guatemala Payroll Calculator