Employer Of Record Guatemala | INS Global

Employer Of Record Guatemala

Expanding to Guatemala? EOR (Employer of Record) Services Help You Hire Globally, Pay Locally, and Expand Effortlessly

Are you considering a project or expansion in Guatemala? INS Global provides Employer of Record (EOR) services that give you a seamless approach to recruiting and managing employees without the need for a local entity. Navigate the intricacies of a globally dispersed workforce and swiftly enter new markets with the guidance of adept HR recruitment and payroll professionals. 

Employer Of Record Guatemala - Summary

The Advantages of Using an EOR or Professional Employer Organization in Guatemala

Legal Compliance Assurance

Opt for an Employer of Record (EOR) service well-versed in Guatemala’s employment rules, ensuring the effective recruitment and supervision of an international workforce. This proactive approach safeguards against potential fines by providing tailored support

Lower Expansion Costs

Collaborate with an Employer of Record in Guatemala to expedite and simplify global growth while significantly reducing common expenses associated with expansion. Scale your operations without establishing a new entity in Guatemala, thereby minimizing overhead costs. 

Focus on Growing Your Company

An Employer of Record in Guatemala takes on all HR-related responsibilities, streamlining your operations and granting you the flexibility to concentrate solely on the international objectives of your business. 

Expand Effortlessly

Establishing a new company in Guatemala can be a time-consuming process. However, partnering with a local Employer of Record expedites the expansion process, allowing entry into the Guatemalan market in as little as a week and ensuring a swift and efficient entry point. 

Manage Your HR Online

INS Global provides an efficient means to manage your diverse, global workforce online through an advanced digital platform. Leverage our proprietary cloud-based HR system to easily oversee all your employees and their needs remotely. 

Why Choose an EOR in Guatemala Over Company Incorporation?

Establishing a new company in a foreign country can be intricate, especially if you are unfamiliar with local regulations. Collaborating with a Guatemalan EOR saves time on expanding your business abroad, lowers expansion costs, ensures local compliance, and allows you to focus on growing your business within Guatemala’s unique context. 

testimonial from Manuel Ramos

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 

5/5

How Does an EOR In Guatemala Work?

INS Global’s EOR in Guatemala facilitates your company’s expansion abroad in four simple steps specifically tailored to the Guatemalan business environment. 

 

  1. We first collaborate with your business to create a customized expansion plan meeting your specific needs. 
  2. We immediately provide the legal entity required to hire local staff or transfer them from abroad, ensuring compliance with Guatemala’s legal requirements. 
  3. We manage all the HR-related tasks involved in local hiring, including contract management, and payroll management, ensuring local compliance in Guatemala. 
  4. Your employees concentrate on your goals while we handle continuous and changing HR and legal compliance needs. 

What is the Difference between PEO and Employer of Record Services in Guatemala?

Professional Employer Organization (PEO) services in Guatemala handle various Human Resources tasks, serving as strategic HR partners. Conversely, an Employer of Record (EOR) in Guatemala has the legal authority to hire and manage employees on your behalf, streamlining the process per Guatemala’s employment regulations.  

INS Global offers both options, ensuring that whether you need an EOR or PEO in Guatemala, you have the support required to expand comfortably, providing flexibility tailored to Guatemala’s business environment. 

Labor Law in Guatemala

Employment Contracts in Guatemala

  • Professional employment in Guatemala always starts with an official letter of employment. 
  • The first two months of all employment contracts are considered probationary periods. 
  • An employer can end an employment contract early if the employee violates the conditions of their contract. 
  • Employees are entitled to 1 week’s notice if they’ve served less than 6 months. This increases to 10 days for more than 6 months of service and 2 weeks for workers serving more than a year with the company. 
  • Severance pay is required for employees and is set at 1 month’s pay for every year of service. 

Working Hours in Guatemala

  • The working week in Guatemala runs from Monday to Friday. 
  • Full-time employees generally work 8 hours per day, 44 hours per week. 
  • Employees are not allowed to work more than 44 hours per week without receiving overtime pay. 
  • Employees are entitled to a higher hourly rate for overtime. This is 150% of the base rate witha higher rate required for night shifts and working on public holidays. 

Annual Leave in Guatemala

  • Guatemala has 12 official national holidays. 
  • Employees are entitled to 15 days of paid annual leave every year, but only after having worked 150 days for the company. 

Sick Leave in Guatemala

  • When an employee is unable to attend work due to illness, they need to get a doctor’s note and present it to HR as soon as possible.  
  • Employees are entitled to up to 6 months of sick leave. 
  • Employees can expect to receive 66% of their income during this time.  
  • Employees can claim social security after this time. 

Maternity / Paternity Leave in Guatemala

  • According to Guatemalan law, female employees are entitled to 12 weeks of maternity leave. 
  • This includes 30 days before birth and 54 days after. 
  • Maternity leave can be claimed from social security. 
  • Male employees are entitled to 2 days of paternity leave. 

Tax Laws in Guatemala

  • Employers in Guatemala are responsible for withholding all taxes and social contributions. 
  • Employers contribute the equivalent of 12.67% of the employee’s salary, while employees contribute 4.83% towards social security. 
  • The corporate income tax rate is set at 25% for both local and foreign companies. 
  • Personal income tax is set at 7%.  
Employer Of Record Guatemala

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FAQs

While setting up a local entity is an option, collaborating with a local Employer of Record proves more efficient in Guatemala. Employer of Record services leverage local expertise, facilitating hiring and staff management on your behalf. 

An Employer of Record in Guatemala manages various HR tasks, including payroll, tax compliance, employment contracts, and social security contributions, ensuring comprehensive compliance for your entire workforce. 

Establishing a new company abroad can take months to a year, but with INS Global’s EOR services, you can hire employees and expand to a new market in Guatemala in as little as a week. 

EOR service costs are directly linked to your employee’s salary, calculated as a percentage and covering all HR functions for compliant employment in Guatemala. 

Yes, collaborating with an Employer of Record in Guatemala is a legal and efficient solution, simplifying your expansion plans while reducing costs. 

Salaries are typically processed monthly for full-time employees, while part-time workers may be paid weekly or bi-monthly. 

Recruitment in Guatemala varies in cost, but INS Global simplifies remote recruitment and staff management, reducing the expenses of managing an international workforce. 

A Guatemalan Employer of Record can recruit and hire employees from all regions, facilitating quick expansion across the country. 

Modifications to employment contracts require mutual agreement. 

Yes, employers in Guatemala are responsible for withholding taxes and social contributions from employee salaries, including an employer’s contribution to each employee’s social security fund

INS Global tailors its services to your company’s needs, assisting with recruiting and hiring as many or as few employees as required for your expansion plans. 

Severance pay is required for employees and is set at 1 month’s pay for every year of service. 

In Guatemala, employees can be hired for both in-person and remote opportunities, allowing for reduced overheads during international expansion. 

Certainly! Our local experts bring extensive experience in finding top talent globally by providing support in recruiting, hiring, and managing your workforce, regardless of your location. 

Guatemala observes 12 public holidays where employees are entitled to a paid day off. Working on these holidays usually involves a higher hourly rate. 

Employers must adhere to strict labor laws and regulations to avoid costly penalties and fines. Partnering with an experienced EOR in Guatemala ensures compliance during your expansion. 

Yes! INS Global assists in the recruitment and management of a diverse workforce, simplifying the process of hiring both Guatemalan citizens and foreigners. 

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