Employer of Record in Guatemala (2026): Costs & Rules

An employer of record (EOR) lets a foreign company hire staff in Guatemala without its own Guatemalan entity. The EOR is the legal employer: it signs the contract, registers the employee with the IGSS and runs payroll, while you direct the day-to-day work. Here is what the law allows and what it costs in 2026.

Is EOR legal in Guatemala?

Yes. Guatemala has no law banning outsourcing or staffing. Article 5 of the Labor Code defines an intermediary as anyone who hires workers in their own name to work for another employer, and makes that employer jointly liable with the intermediary for the workers’ legal rights. In practice, the client and the EOR can both be held responsible for wages, benefits and severance, so check that your EOR is current on IGSS payments and benefits.

Minimum wage in 2026

Government Agreement 256-2025 sets the 2026 minimum wages. For non-agricultural work in the department of Guatemala (Economic District 1) the minimum is Q131.58 a day, or Q4,002.28 a month, plus the Q250 incentive bonus (bonificación incentivo), for a total of Q4,252.28. Rates are lower in the rest of the country (Q3,816.90 for non-agricultural work) and for agricultural and export/maquila work.

Social security and employer costs

• IGSS: 10.67% paid by the employer and 4.83% withheld from the employee.
• IRTRA and INTECAP: additional employer-only levies collected with the IGSS payroll.
• Aguinaldo: one month’s ordinary salary per year of service (Decree 76-78), paid 50% in the first half of December and 50% in the second half of January.
• Bono 14: another month’s salary (Decree 42-92), paid in the first half of July.
• Vacation: at least 15 paid working days after each year of continuous service (Labor Code art. 130).

Termination and severance

When an indefinite-term employee is dismissed without just cause after the probation period, the employer must pay severance (indemnización) of one month’s salary for each year of continuous service, or the proportional part for less than a year (Labor Code art. 82). Under an EOR, the EOR pays it and passes the cost to you.

EOR or your own company?

An EOR suits a first hire or a test of the market. For a larger permanent team, it is often cheaper to set up your own company and employ people directly. Compare the options on our employer of record page.

Get help from Easyco

Easyco helps foreign founders set up their businesses in Guatemala and supports them afterwards with tax, accounting and payroll. Request a quote to discuss your hiring plans.