After the Guatemalan Constitutional Court suspended the implementation of differentiated salaries in 2015, the Giammattei administration plans to discuss the application of regional minimum salaries during 2021 and the plan is for them to enter into force in 2022.
In 2015 the Guatemalan government established differentiated salaries for the municipalities of Masagua in Escuintla, Guastatoya and San Agustín Acasaguastlán in El Progreso and Estanzuelas in Zacapa.
How much should be paid in benefits such as bonuses and incentives to part-time workers is one of the doubts that arise among employers after the new regulation enters into force.
According to the authorities of the Ministry of Labor, in the case of the payment of bonus 14 and incentive, the companies must make a disbursement proportional to the salary earned by the part-time worker.
Finally, in Guatemala the agreement was approved that will allow companies to hire part-time workers, which promises to be part of the solution to the unemployment problem affecting the country.
On June 27, Governmental Agreement 89-2019 was published in the Official Gazette, establishing the Regulations of Convention 175 of the International Labor Organization (ILO), which will regulate the hiring of part-time workers in the country.
In Guatemala, a guide is proposed to establish best practices in occupational safety and health for companies in the construction sector.
The Guatemalan Ministry of Labor and Social Security (Mintrab) and the Guatemalan Chamber of Construction (CGC), agreed to work together to exchange knowledge and experiences to strengthen standards in legislation, promotion of formality, labor inclusion, as well as the issue of Occupational Health and Safety, reported the Guatemalan government.
In Guatemala, the law regulating part-time work has already been reviewed by the Attorney General's Office and awaits the approval of the Council of Ministers.
Although in August 2017, the Morales administration had planned to approve the law before February 2018, the process has been lengthening, and a government agreement must be issued for it to take effect.
The Ministry of Labor is preparing a bill to regulate how companies can carry out part-time hiring, starting in February 2018.
The draft law being prepared by the government will allow the establishment of conditions for part time jobs starting in February next year, when the 175th Labor Organization Convention,approved in January of this year, comes into force.
In Guatemala, the entry into force of the new Regulation for Occupational Health and Safety has been postponed until August 8, 2015.
Tax Memorandum by Tezó and Associates:
Edition 5 to 15 February 2014
Regulation on health and safety
The Ministry of Labour and Social Insurance published in the Official Journal of 11 August 2014 "Regulations for Occupational Health and Safety" to be observed by every employer.
The Ministry of Labor has announced that as of January 1, 2015 a 5% increase in minimum wages in the productive sectors will come into force.
From a statement issued by the Government of Guatemala:
The Minister of Labour and Social Welfare (MTPS), Carlos Contreras, reported that the minimum wages for 2015, corresponding to agricultural, farm, maquila and non-agriculture sectors will increase by 5%, which is the third consecutive increase recorded during the administration of President Otto Perez Molina.
For the second consecutive year the increase was agreed between the private sector, trade unions and the Government.
A press release from the Government of Guatemala reads:
The Government of Guatemala has announced an adjustment to the minimum wage for 2014, representing an increase of 5%, as was announced by the Minister of Labor, Carlos Contreras. The increase will benefit 1.5 million Guatemalans formally working in the country.
Technical assistance and training will be provided for the public institutions who will be involved in the implementation of the agreement.
"AA-Integration Project" will take place in a period of 80 months with a $11.6 million investment, of which $9.1 million will be provided by the European Union and the rest by the Guatemalan government.
The project will be implemented by the Ministry of Foreign Affairs in Guatemala.
In Guatemala you have to invest an average of $10,000 to cover the costs needed for equipment, furniture, tools, training and administration.
It has been estimated that Guatemalan companies invest an average of $10,000 in the generation of one job, an amount that may vary according to the activity being carried out.
This is according to the Ministry of Labour assessments (Mintrab) in the country.
On May 23 Guatemalan businessmen will be able to find out about the commitments made under the Mutual Agreement between the U.S. and Guatemala in the DR-CAFTA labor subject.
From a note by the Guatemalan Exporters Association (AGEXPORT):
AGEXPORT, in order to present the commitments made in the framework of the friendly settlement agreement reached between the United States and Guatemala related to DR-CAFTA labor issues, will hold a breakfast conference on Thursday, May 23, 2013 from 7:15 to 9:30 hrs., which will be delivered by Mr. Carlos Contreras Solorzano from the Labour Ministry.
The U.S. is withdrawing from suing the Guatemalan State for breach of labor rules before an international tribunal provided by the DR-CAFTA.
"In order to prevent the creation of an international panel that could lead to Guatemala paying a penalty of up to $15 million for violating labor laws, the Government has agreed with the United States to abide by a commitment to a plan to implement policies respecting these rules ", reported Prensalibre.com.
A law passed by Congress states that income from tips should not be considered as part of a salary, and therefore should not be subject to taxes.
An interpretive ruling of the Constitutional Chamber of Costa Rica had endorsed the view of the authorities of the Social Security Department, which includes tips in salaries on which social security contributions are calculated, both those paid by the employee and the employer.
The business sector proposes an increase of 2%, while employee representatives are asking for 47%.
The current minimum wage is Q62, 5 ($7.95) per day, for the export and maquila sectors and Q65 ($8.27) per day for agricultural and nonagricultural sectors.
The final debate is scheduled for tomorrow, December 7 and if a consensus can not reached, the President will make the final decision.