Littler Global Guide - Guatemala - Q1 2023

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q1 2023 Global Guide Quarterly updates   Download full Q1 2023 Global Guide Quarterly

New Requirements for Employers to Register with the Social Security System

New Legislation Enacted

Author: Randolf Castellanos, Partner – BDS, Member of Littler Global

On January 17, 2023, Guatamala enacted a new regulation addressing employer registration with the Social Security System. The new agreement, i.e., Agreement No. 1529 of the Guatemalan Social Security Institute (Instituto Guatemalteco de Seguridad Social or IGSS), imposes new obligations on all employers to register and enroll their employees in accordance with the Social Security Regime within 30 business days of the obligation being created.

Minimum Salary for Guatemala 2023

New Order or Decree

Author: Randolf Castellanos, Partner – BDS, Member of Littler Global

The minimum salary in Guatemala has a new modality. In addition to being classified by economic activity (i.e., agricultural, nonagricultural and exporting and maquila), it is now classified by economic circumscriptions. Economic circumscription one (CE1) is limited to the department of Guatemala, and economic circumscription two (CE2) is limited to the rest of the departments.

Further, the minimum salary for 2023 was increased by 7% for the CE1 circumscription and 4% for the CE2 circumscription.

New Court Will Rule Over Noncompliance with Labor Judgments

New Order or Decree

Author: Randolf Castellanos, Partner – BDS, Member of Littler Global

Agreement 33-2022 of the Supreme Court of Justice creates a new court (Juzgado Pluripersonal de Paz Penal) with competence over “crimes of disobedience” (regulated in articles 414 and 420 of the Criminal Law). The new court was created because the parties to labor resolutions are not complying with the reinstatements and judicial resolutions ordered by the labor courts.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.