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Hire a remote team in Guatemala

Hiring a remote team in a country as Guatemala comes with a lot of overhead, such as compliance, local laws, taxes, etc. As a company, you don't want to worry about knowing all the local laws. Instead you want to focus on your remote team and the business. Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Guatemala. We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business.

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1. Hire a remote team in Guatemala with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in Guatemala, particularly if you don't have established local relationships. You can hire employees in Guatemala effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

Table of contents
  1. Hire a remote team with Rivermate
  2. Introduction
  3. Hiring a remote team in your country
  4. Cost of living
  5. Cost of renting
  6. Major industries
  7. Hiring cost
  8. Employment laws
  9. Top skills
  10. Economic landscape
  11. Market size
  12. Minimum wage

2. Introduction

Rivermate is a global employment solutions company that provides Employer of Record services in Guatemala.As an employer of record, we help you hire employees and run payroll services in Guatemala, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Guatemala.It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.If you wish to hire a remote team in Guatemala or individually hire remote employees in Guatemala, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.Send us a message so we can talk about how Rivermate’s Employer of Record Guatemala services can best help your company!

3. Hire a remote team in Guatemala

Guatemala is the biggest economy in Central America, with an average growth rate of 3.3% from 2015 to 2018. Guatemala's economy is steady as a result of prudent budgetary management, inflation control, and a favorable exchange rate. Guatemala is a youthful nation, with a median age of 24 and a population growth rate of 2% each year. The private sector accounts for around 85 percent of GDP. The service sector accounts for 62 percent of Guatemala's GDP and employs 48 percent of the workforce. Agriculture accounts for 13.5 percent of GDP, while industry accounts for 24 percent.According to the OECD, the pandemic is anticipated to reduce Guatemalan GDP by 1.5% in 2020. It will have an influence on foreign commerce, private spending, and remittances, which account for 88% of GDP. Several elements, such as multilateral lenders and free trade agreements, support Guatemala's economy. Guatemala is strategically located between the United States and Mexico. These elements combine the possibility of diversification in a variety of industries, including tourism, agriculture, mining, hydroelectric and geothermal energy, and so on. Despite the COVID-19 epidemic, the IMF forecasts 4.5% GDP growth in 2021 and 4.4% growth in 2022.

4. Cost of living in Guatemala

Guatemala's cost of living is $910, which is 1.02 times less costly than the global average. Guatemala scored 77th out of 197 nations in terms of cost of living and 100th in terms of quality of life.In Guatemala, the average after-tax earnings is $437, which is enough to meet living costs for 0.5 months.

5. Cost of renting in Guatemala

The cost of renting in Guatemala is determined by the kind of housing you want and the lifestyle you choose. The monthly rent for a one-bedroom apartment is between US $387-774 (3000-6000Q). For 3-bedroom accommodations, the price ranges from US $900-1032 (7000-8000Q). If you wish to stay in the city center, rent will increase by US $64-128 (500-1000Q) from the standard cost. If you want to purchase an apartment, the price range is US $774-2581. (6000-20000 Q).

6. Major industries in Guatemala

Manufacturing accounts for 20% of the Guatemalan economy, commerce accounts for 18%, private service accounts for 14%, and agriculture accounts for 12%. Tourism, health care, customer service, financial services, banking, communications, retail, and so on are examples of services. The sector contributes for the majority of GDP (62.7%) and 50% of employment. The top industries where employers will want to hire remote employees from Gabon are the following: 1. Agriculture2. Automotive3. Energy 4. IT and Software5. Healthcare6. Logistics7. Transport8. Agribusiness9. Mining10. Banking

7. Hiring cost in Guatemala

Hiring expenses are a key consideration in every recruiting campaign. Companies must plan and organize their efforts while keeping the elements and cost-based components of recruiting procedures in mind. The cost per hire refers to the expense incurred by the firm in order to recruit each employee. Among the aspects are:1. Onboarding expenses2. Technology costs3. Career costs4. Advertising costs5. Agency fees6. Training7. Investment of time and efforts

8. Employment laws Guatemala

Understanding employment regulations is critical when recruiting local labor. Guatemala's labor system is very conventional and comparable to that of other Central American nations. Employees must put in 45 hours every week. Overtime of up to ten hours is also permitted under the legislation. Overtime pay is 1.5 times the regular hourly payment. For a 30-day work cycle, salaries are paid in the legal currency. The pay cannot be less than the minimum wage set by the government.The monthly minimum salary for non-agricultural sectors is US $365 (2825Q), whereas the monthly minimum pay for agricultural sectors is US $354 (2742Q). Furthermore, recruiting authorities must establish and follow an employment guide and internal work policy. A 15-day vacation break is also required. According to labor legislation, maternity, sick, and other leaves are also offered.

9. Top skills Guatemala

On numerous employment boards, Guatemalans are seeking for remote jobs. Developers, project managers, management, teaching, and even musicians are among the occupations available.Software engineers and full-stack developers are in high demand by corporations and startups in Guatemala. Major talents and areas that have shown recent growth rates are:1. Web development2. PHP3. Software testing4. Frontend and backend engineers5. IT6. Communication technology7. Staffing and OutsourcingNetwork solutionsThe most prevalent vocations in Guatemala City are network administrator, IT, software engineer, and Chief Executive Officer (CEO), with yearly incomes ranging from US $4700 to US $7400.

10. Economic landscape in Guatemala

Guatemala's economy is a growing one that is heavily focused on agriculture, particularly traditional crops such as espresso, sugar, and bananas. Guatemala's GDP per capita is around 33% that of Brazil.The economy is projected to recover from this year's pandemic-driven downturn. The United States, as Guatemala's main trading partner, takes control of the economy; Guatemala is projected to receive support in local goods via remittances. Focus Economist predicts 3.8% growth in 2021, increasing to 3.2% in 2022.

11. Market size in Guatemala

Guatemala's economy is a hybrid of free-market principles and centralized government planning.The private sector accounts for over 85% of Guatemala's GDP. Manufacturing is mostly focused on food processing for export. Women's labor-force participation was just 42% in 1990. In 2000, it was 43%, and in 2010, it was 51%. Currently, 90% of males are employed, compared to 89% in 1990 and 88% in 2000. (World Bank). Self-employed men account for over half of the population, while females account for 32%.

12. Minimum wage in Guatemala

The minimum wage in Guatemala varies by sector, according to the country's compensation laws. Non-agricultural employees, for example, earn 92.88 Guatemalan quetzals per day as of January 2021. Employees in export-sector factories should be paid 84.88 quetzals per day. Employees earning the minimum wage should be required to receive a monthly bonus of 250 quetzals. Salaried employees should also receive two mandatory yearly bonuses, each equal to one month's salary.