Today, December 30, 2019 was published in the Official Gazette of the Government Agreement No. 320-2019 of the Ministry of Labor, which establishes the minimum wage to be paid in Guatemala to employees dedicated to agricultural, nonagricultural activities and export and maquila activities starting from January 1st, 2020. Below we provide you with a brief explanation of the impact of this Agreement, by response to questions that may arise with respect to this matter.

1. The increase stipulated in the Government Agreement of Minimum Wage for agricultural, nonagricultural activities and export and maquila activities is applicable to the employees who have recently joined the company or to all existing employees?

The Government Agreement applies to all employees, regardless of the time they have been working for the company. Because of this, the company will have to recognize the minimum wage that corresponds according to the category of the employee, from January 1st, 2020.

2. How is the increase of the minimum wage?

The minimum wage for 2020 is set as fallow:

For agricultural activities: the minimum wage doesn't have any change, the amount of Q. 90.16 per day, equivalent to Q. 11.27 per hour, still valid.

For nonagricultural activities: the minimum wage is fixed on Q. 92.88 per day, equivalent to Q. 11.61 per hour.

For the export and maquila activities: the minimum wage is fixed on Q.84.88 per day, equivalent to Q. 10.61 per hour.

3. When did the mentioned Agreement take effect?

It will come into force as of January 1st up to December 31, 2020.

4. How is the monthly minimum wage calculated?

According to the criteria of the National Salary Commission and the Labor Inspectorate, the amount of the monthly minimum wage is determined by the following formula: multiplying the daily minimum wage for 365 days of the year and the result divided by 12 months.

For the year 2020, the total monthly minimum wage in force is fixed as follows:

Additionally, the employer must pay the amount of Q.250.00 per employee for Productivity Incentive Bonus.

We also inform the employers that the minimum salary set for daytime, mixed and nighttime work shifts are as follows: