INCREASE IN THE MINIMUM WAGE IN 2025 AND COMPLIANCE WITH EMPLOYER OBLIGATIONS.
By Arias, Guatemala
1. MINIMUM WAGE 2025Â Â
The minimum wage established by Government Agreement No. 264-2024 of the Ministry of Labor and Social Security will come into effect as of January 1, 2025. Below we provide more details on this matter.
- How much is the agreed increase?
The minimum wage is increased by 10% for agricultural and non-agricultural activities in Economic District 1 (CE 1) and Economic District 2 (CE 2). In addition, a 6% increase is established for maquila activity and other export activities in both districts (CE 1 and CE 2). Therefore, for the year 2025, the monthly minimum wage is as follows:CE1: Economic District 1 (Department of Guatemala):
✓ Agricultural Activity: Q. 3,593.55, monthly increase of Q. 326.69
✓ Non-Agricultural Activity: Q. 3,723.05, monthly increase of Q. 338.46
✓ Maquila Activity: Q. 3,278.59, monthly increase of Q. 185.58CE2: Economic District 2 (All departments except Guatemala):
✓ Agricultural Activity: Q. 3,436.86, monthly increase of Q 312.44
✓ Non-Agricultural Activity: Q. 3,550.60, monthly increase of Q322.78
✓ Maquila Activity: Q. 3,097.21, monthly increase of Q175.31 - How long is the Agreement valid?
It is valid from January 1 to December 31, 2025. - How is the monthly minimum wage payment calculated?
The amount set to be applied for the payment of the minimum wage is governed and determined by the place where the workplace is located. If it is not possible to determine a workplace due to the nature of the service or the execution of the work, the place where the execution or provision of this work is usually carried out will be taken.For the year 2025, the total of the current monthly minimum wage is set as follows:CE1: Economic District 1 (Department of Guatemala) 
CE2: Economic District 2 (all departments except Guatemala) 
2. ORNAMENTAL TAX
All Guatemalans or foreigners domiciled in each municipal jurisdiction, and who are between 18 and 65 years of age, are required to pay the Ornate Tax.
Every employer who employs one or more workers is required to require proof of payment of the Ornate Tax from their workers. If the employee does not provide documentary evidence that he has paid said tax, the employer is required to withhold from the January salary or at the latest in the month of February, the amount corresponding to the monthly income of each worker, in accordance with the following table:
Once the employer has made the withholding, he/she must send a report to the Municipality where the workplace is located within the following 15 days, with the list of employees from whom the withholding was made and the amount of their monthly salary.
3. ANNUAL EMPLOYER’S REPORT
Every employer, regardless of the economic activity they carry out, must comply with the obligation to submit the Annual Employer’s Report during the first two months of each year.
The report must be submitted through the electronic platform that the Ministry of Labor has made available to employers:Â https://informeynomina2989.mintrabajo.gob.gt/
If you need additional information about these or other employer obligations in Guatemala, do not hesitate to contact us.
