If you are a foreign company looking to do business in Guatemala, hiring local personnel through a Professional Employer Organization (PEO) is a smart choice. A PEO, also known as an Employer of Record (EOR) or a payroll outsourcing company, can handle complex HR activities and ensure compliance with local labor and tax regulations. Guatemala has a growing economy, with a GDP-PPP of $153 billion and a GNI of $8,870 in 2019. The country has seaports on both the Caribbean Sea and the Pacific Ocean, as well as free trade agreements with the US, the European Union, and various Latin American countries.
A PEO in Guatemala can help with the hiring process, payroll management, and legal and accounting advice. By working with a PEO, you can minimize legal risks, find qualified staff quickly, and access the market more efficiently. A PEO will ensure that you meet the legal requirements for employee rights in Guatemala, including working hours, holidays, bonuses, sick leave, and contracts. They will also assist with immigration support for foreign employees.
If you are considering hiring employees in Guatemala, you can either set up your own legal entity or use a PEO to act as the legal employer. A standard employment contract in Guatemala should contain information about the employer and employee, job responsibilities, working hours, remuneration, and the term of employment. Mandatory employment benefits in Guatemala include social security contributions, vacations, Christmas bonuses, and incentive bonuses.
When it comes to the cost of hiring an employee in Guatemala, the employer’s cost for mandatory employment benefits is approximately 12.67% over the employee’s salary. At Biz Latin Hub, we offer recruitment and employment services in Guatemala, as well as legal, accounting, and back-office support. We can help you enter the Guatemalan market efficiently and find the right staff for your business. Contact us to learn more about our expansion options.
