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Guatemala - Minimum Wages - 2011


LAST UPDATE

1 December 2011

SOURCES


Name of Act

Decree No. 1441 promulgating the Labour Code, (Codigo de Trabajo El Guatemalteco No. 14, 14 June 1961, p. 145) of 5 May 1961, as amended up, to Decree n° 18 (Diario de Centro América, No.68 p.2-5, dated 25 May 2001) of 14 May 2001
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Name of Act

Government Agreement n°388-2010 on minimum conditions for the agriculture and non-agriculture activities, exportation and textile sector (Acuerdo Gubernativo n° 388-2010) of 29 December 2010.

Name of Act

Ministerial Agreement No.106-2011 issuing the proceedings in case of hindering the labour inspection (Acuerdo Ministerial instructivo de procedimientos en caso de resistencia a la labor inspectiva de los inspectores de trabajo), of 26 May 2011.

Name of Act

Ministerial Agreement No.128-2009 on Labour Inspection, of 8 July 2009.

LEGAL DEFINITIONS


Employee/worker

"Worker" shall mean any natural person who renders intellectual or material services or both to an employer according to a labour contract or a labour relation.
Labour Code Art.3

Employer

"Employer" shall mean any natural or legal person who profits from the services rendered by one or more workers by virtue of a labour contract or a labour relation.
Labour Code Art.2

Wage

"Wage" shall mean the remuneration which the employer shall pay to the worker by virtue of an employment contract or labour relation.
Labour Code Art.88

Minimum wage

"Minimum wage" shall mean the minimum remuneration that can be established by the parties of the labour relation, capable to cover the normal needs of the worker in the material, moral and cultural order, and to fulfill his duties as head of the household.
Labour Code Art.91, 103

MINIMUM WAGE FIXING


Procedure


Procedure in general

There is no national minimum wage rate. Minimum wage rates vary by sector.

Minimum wage rates for private sector workers are set by the government in the following manner:
a. Joint Minimum Wage Boards in each region and economic zone specified by the Executive make a recommendation to the National Wage Commission concerning the minimum wage rates for their region or zone.
b. Once the National Wage Commission, a technical and advisory body attached to the Ministry of Labour and Social Welfare, has received the recommendations of all Joint Minimum Wage Boards, it issues a report harmonizing all the proposed rates.
c. The Executive fixes the minimum wage rates (which apply nation-wide with no regional variation) in an accord with the Ministry of Labour and Social Welfare, based on the report of the National Wage Commission.

Joint Minimum Wage Boards are made up of : two employers and the same number of workers, and a labour inspector, who shall act as chairman.
Labour Code Art.105-115

Minimum wage set through decentralized collective bargaining

Minimum wage rates can be fixed by collective agreement for those sectors not covered by a rate established by the Joint Minimum Wage Boards and National Wage Commission. Minimum wage rates set by collective agreement cannot be lower than those fixed by the authority.
Labour Code Art.115

Criteria


Needs of workers and their families

Yes. Every worker is entitled to enjoy a minimum wage capable to cover his normal needs in the material, moral and cultural order, and to fulfill his duties as head of the household.
Labour Code Art.103

Cost of living

Yes. The adjustment of the minimum wage shall be capable to increase the standard of living of the workers and their families.
To this respect it shall be considered the particular conditions of each region, regarding the price of the accomodation, clothes and food necessary to cover the essential needs as well as the normal practices in each sector regarding in kind-allowances.
Labour Code Art.103, 111
Government Agreement n°388-2010 minimum conditions Second Recital, art.10

Economic development

One of the goals of the State shall be the promotion of the economic development of the Nation and for this purpose, the minimum wage shall be periodically adjusted.

In order to create the adequate conditions for the promotion of an efficient and ordered development of the foreign trade, it is essential increasing the minimum wage rate.
Government Agreement n°388-2010 minimum conditions Second and Third Recital

Productivity

In order to create the adequate conditions to originate high levels of productivity it is essential increasing the minimum wage rate.
Government Agreement n°388-2010 minimum conditions Third Recital

Capacity of employers to pay

Yes. In order to fix the minimum wage rate, it shall be taken into account the employers capacity to pay in the intellectual, industrial, commercial and agricultural activities.
Labour Code Art.103

Coverage


Scope

Minimum wage rates are applicable to all workers with the exception of those who work for the State or its institutions. However, different minimum wage rates are provided for agricultural and non-agricultural workers and for the export and textile sector workers, all of which are set by government accord.
Labour Code Art.104
Government Agreement n°388-2010 minimum conditions Art.1,2,3

Specific minimum wage rates


» Specific minimum wage by sector

Yes - Three different minimum wage rates are set for the agricultural sector, the non agricultural sector and for the export and textile sector.
Government Agreement n°388-2010 minimum conditions Art.1,2,3
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» Minimum wage levels for specific categories of workers


» Trainees

Apprentices may be paid less than the minimum wage rate.
Labour Code Art.170
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» Domestic Workers

Relevant provisions on minimum wages for domestic workers have been not identified. The legislation states that the minimum wage rate shall apply "Erga Omnes" in the labour relations of Guatemala, except for those workers working for the State.
Therefore the minimum wage rate for the non-agricultural workers fixed in 63.70 $Q per day shall apply.
Government Agreement n°388-2010 minimum conditions Art.2
Labour Code Art.104

» Piece-rate workers

Remuneration for piece-rate workers cannot be lower than the applicable minimum wage rates.
Art. 103 Labour Code
Government Agreement n°388-2010 minimum conditions Art.7

Level


Minimum wage level(s) in national currency

The minimum wage rate for the non-agricultural workers is fixed in 63.70 $Q per day and 7.9625 $Q per hour.
Government Agreement n°388-2010 minimum conditions Art.2

Last minimum wage update

1 January 2011
Government Agreement n°388-2010 minimum conditions Art.13

In-kind allowances

Wages shall be paid exclusively in legal currency.
However, agricultural workers may receive up to 30% of their wages in food or other similar allowances intended for their direct personal consumption or that of their families who live with them and are financially dependent upon them, provided that the employer provide such benefits at cost price or less.
For other categories of workers it also applies the 30% of the total wage as the maximum percentage that workers may receive in benefits of any nature different than cash payments.
Labour Code Art.90

Rate of payment


» Hourly

Yes. The legislation provides the minimum wage rate calculated per day and per hour.
Government Agreement n°388-2010 minimum conditions Art.1,2,3

» Daily

Yes. The legislation provides the minimum wage rate calculated per day and per hour.
Government Agreement n°388-2010 minimum conditions Art.1,2,3

» Other

When for the particularities and the nature of the work, the wages are agreed to be paid per hour, per piece or per commission, in no case the worker may earn under the minimum wage rate fixed per day.
Government Agreement n°388-2010 minimum conditions Art.7

Scheduled frequency of adjustment

Minimum wage rates shall be adjusted every year.
Labour Code Art.113

Enforcement mechanisms


Labour inspection

The General Labour Inspection shall ensure the application of the principles content in the Labour Code and for this purpose shall carry out inspections in order to check and document violations to the workers’ rights.
To this respect, an urgent intervention is required in case an employer hinders the labour inspection, in cases of:
- complaints about the identification of worst forms of child labour.
- verify the closure or possible closure of an undertaking.
- Employer replacement.
-Dismissals of more than 10 employees.
-All the cases considered as emergency for the General Labour Inspector.
Ministerial Agreement No.106-2011 Art.2
Ministerial Agreement No.128-2009 Art.2

Fines in national currency for non-respect of legislation

Any contravention of provisions related to wages committed by an employer shall entail a fine of between 3 and 12 monthly minimum wages applicable to the non-agriculture sector, in addition to the obligation of payment the salaries due to the workers.
Labour Code Art.272 (c)
Government Agreement n°388-2010 minimum conditions Art.8

Results generated on: 21st December 2014 at 21:48:58.
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