Guatemala: Differentiated Minimum Wages Needed

The Executive argues that foreign companies planning to invest in the country desist from doing so if they are not provided with tax incentives and the possibility of paying differentiated wages.

Friday, March 13, 2015

The Government is continuing to put pressure on Congress to approve the Investment and Employment Act which has been temporarily suspended due to several actions of unconstitutionality presented before the Court. State representatives say that if the option of differential wage is discontinued permenantly, several foreign companies will desist from making investments in the country.

Sergio de la Torre, Minister of Economy, told that "... In order for these companies to invest in Guatemala they need to be granted a number of benefits, including the possibility of paying less than the minimum wage established for the rest of the Republic and tax privileges, through the Investment and Employment Act which is pending approval in Congress. "

"... At least 100 companies interested in investing in the four municipalities classified by the government as economic areas, may leave the country if the Constitutional Court permanently suspends the differentiated salary of $197. "

More on this topic

Alternatives to Differentiated Wages

February 2016

After the government repealed differentiated wages, the Guatemalan business sector will be proposing new options such as work paid by the hour and other initiatives to promote investment and employment.

Entrepreneurs will not stand idly by and will be proposing new alternatives for flexible working hours and wage schemes to improve conditions and attract more investment to the country, especially in areas far from the capital.

It's Easy to Talk About Differentiated Minimum Wages

January 2016

From the comfort of a heated office and after receiving thousands of dollars in salary at the end of every month, well-intentioned people are trying to take away from those who have nothing, the possibility of having a job.


The indispensable struggle for the dignity in jobs and the eradication of slavery of the people living under a wild form of capitalism, has led to the introduction of minimum wages in modern societies.

Guatemala: Incentives for Free Zones Expire

January 2015

The business sector is demanding that the government take action to minimize the impact of the expiry at the end of the year of tax incentives granted to foreign firms in free zones.

About 1,300 companies enjoy the benefits granted by the World Trade Organization, which expire on December 31 this year. Two companies have already moved their operations to other countries, according to the Ministry of Economy of Guatemala.

Guatemala Prepares New Incentives for Investment

April 2012

Legislation packages are being prepared to grant exemptions to exports, logistics and industrial parks.

The government and employers are holding talks regarding legislative proposals and measures to attract more foreign investment.

Sergio de la Torre, Minister of Economy, said there is a package of new laws which will be submitted to Congress within six weeks, which includes, Act on Investment Incentives, Employment and Productivity, Competition, Employment Inclusion, and Microfinance.

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