Through Government Agreement Number 239-2022 of the Ministry of Labor and Social Welfare published in the Diario Oficial (Official Gazette) on September 28 of this year, Agreement 1520 of the Board of Directors of the Guatemalan Institute of Social Security -IGSS- was approved, through which amendments to Agreement Number 1421 of the Board of Directors of the Guatemalan Institute of Social Security -IGSS- "Regulation on the Collection of Contributions to the Social Security Regime". Likewise, said Agreement 1520 was published in the Official Gazette on September 28 of the current year. Both Agreements entered into force on the day of their publication.

The reforms introduced in Articles 4 and 5 concern the setting of a base amount for the calculation of the minimum monthly contribution to Social Security, in cases where the worker earns a salary lower than said base. The amount will be determined in accordance with the amount established as the minimum monthly salary set by the Executive Branch for the corresponding activity (agricultural, non-agricultural, manufacture). The employer will oversee paying the corresponding amount between the minimum contribution and the sum of the labor and employer contributions calculated based on the salary earned by the worker. Consequently, the employee who does not earn the minimum monthly salary must only make his contribution to social security on the amount of the salary he earns, and the employer must contribute on the difference between the employer and labor quota (expansion factor) necessary to cover the minimum monthly contribution to social security that is established on the corresponding minimum wage.

The Agreement establishes that the base amount for the calculation of the minimum monthly contribution to Social Security is defined as the amount resulting from multiplying the minimum salary set by the Executive Branch, in daytime work according to the corresponding economic activity, calculated on a minimum of eight hours a day, by the given expansion factor, according to the calculation table included in said Agreement. Likewise, the distribution of income from the cases described above to the accounts of the Sickness, Maternity and Accidents -EMA- and Disability, Old Age and Survival -IVS- programs is included.

Additionally, Article 9 is reformed in the sense that it adds the provision related to the obligation of the IGSS to maintain the discretion not to disclose, except in writing from a competent authority, the data or individual reports provided to the Collection Directorate for being considered under guarantee. Confidential. Statistics or general reports prepared with individual data and figures can only be provided or published by the IGSS Management when deemed appropriate.