Executive summary: the highest minimum wage in the country in 2026 corresponds to non-agricultural activity in CE1 (Guatemala Department) at Q. 4,002.28 ordinary monthly + Q. 250 incentive bonus = Q. 4,252.28 total. The lowest is export and maquila activity in CE2 at Q. 3,221.10 + Q. 250 = Q. 3,471.10. Every minimum-wage worker is exempt from income tax (ISR) in 2026.
Official Guatemala 2026 minimum wage table
Under Government Agreement 256-2025, the minimum wages in effect in 2026 are as follows. All amounts are expressed in quetzales (Q.) and include the Q. 250 incentive bonus (Decree 78-89) in the "Monthly total" column:
Economic District 1 — Guatemala Department
Economic District 2 — Rest of the country
Source: Government Agreement 256-2025, published on December 22, 2025 in the Official Gazette of Central America. Effective from January 1, 2026 to December 31, 2026, unless modified later.
What is the economic district?
The economic district is the territorial division used by the Government Agreement on minimum wage to differentiate regions by their cost-of-living level. There are two:
- Economic District 1 (CE1): covers exclusively the Guatemala Department, which due to its urban concentration and higher cost of living has higher minimum wages.
- Economic District 2 (CE2): covers the 21 remaining departments of the country (Alta Verapaz, Baja Verapaz, Chimaltenango, Chiquimula, El Progreso, Escuintla, Huehuetenango, Izabal, Jalapa, Jutiapa, Petén, Quetzaltenango, Quiché, Retalhuleu, Sacatepéquez, San Marcos, Santa Rosa, Sololá, Suchitepéquez, Totonicapán and Zacapa).
The gap between CE1 and CE2 minimum wages typically ranges from 4% to 6% depending on the activity. The split is administrative in nature and seeks to reflect the different regional economic realities without creating excessive inequality.
Which economic activity applies to my company?
Government Agreement 256-2025 establishes three categories of economic activity with differentiated minimum wages:
Agricultural activity
Includes field work: farming, harvesting, livestock, forestry, fishing, swine farming, poultry and other primary activities related to agricultural and livestock production. Applies to estates, plantations, farms and agroindustrial operations in their field component.
Non-agricultural activity
Includes manufacturing for the domestic market, commerce, professional services, construction, transportation, telecommunications, restaurants, hotels, finance, private education, private health, and other urban activities. It is the broadest category and applies to most SMEs in the country.
Export and maquila activity
Applies to companies covered by the regime promoting maquila (export-processing industry) and exports (Decree 29-89), producing goods aimed mainly at foreign markets. It carries slightly lower minimum wages as a measure of regional competitiveness but requires the same compliance with labor benefits as other activities.
Application criteria under Agreement 256-2025
Government Agreement 256-2025 sets out clear rules to determine which minimum wage applies in ambiguous cases. The criteria apply in this order of priority:
- Place where the work is performed (primary criterion). The decisive factor is where the work is physically performed. For example, a worker for a company headquartered in Quetzaltenango but working at a branch in the Guatemala Department receives the CE1 minimum wage.
- Nature of the service. When the work is performed in an operation with mixed activity, the category corresponding to the predominant activity or the specific activity of the position applies.
- Worker's place of residence (backup criterion). Used only when the prior criteria do not clearly establish the applicable district.
Q. 250 incentive bonus per month
In addition to the ordinary minimum wage, every private-sector worker is entitled to the Q. 250 monthly incentive bonus, regulated by Decree 78-89 and its amendments. Key features:
- It complements the ordinary salary and is paid together with it each month.
- It does NOT form part of the ordinary salary for the purpose of calculating labor benefits (Bono 14, Aguinaldo, severance or vacation).
- It pays NO IGSS (neither employer nor worker share) nor IRTRA nor INTECAP.
- In practice, its payment and amount may vary based on employer policy. Some employers fold it into the salary; others pay it separately at higher amounts.
- At the end of the employment relationship, it is paid pro-rata for the days worked in the current month/biweekly period if not yet covered.
Do minimum-wage workers pay income tax (ISR) in 2026?
No. Under the minimum living deduction of the Tax Update Law and the extraordinary deduction established by Decree 13-2026, every minimum-wage worker in any activity and district of the country is exempt from ISR in 2026.
The calculation is simple:
- Highest minimum wage in effect: Q. 4,002.28 ordinary monthly (non-agricultural CE1).
- Annual taxable income: Q. 4,002.28 × 12 = Q. 48,027.36.
- Total 2026 deduction: Q. 48,000 (minimum living) + Q. 3,024 (extraordinary, Decree 13-2026) = Q. 51,024.
- Taxable base: Q. 48,027.36 − Q. 51,024 = negative → ISR = Q. 0.
For more detail on the 2026 ISR reform, read: Decree 13-2026: Elimination of ISR for minimum wage in Guatemala (in Spanish).
What must be paid in addition to the minimum wage?
The minimum wage is only part of a worker's total cost. Each month the employer must also cover:
- Monthly employer contributions (14.67% of ordinary salary): IGSS employer 12.67%, IRTRA 1%, INTECAP 1%.
- Bono 14 accrual (8.33% of salary): one additional ordinary salary in July.
- Aguinaldo accrual (8.33% of salary): one additional ordinary salary in December.
- Vacation accrual (4.17% of salary): 15 business days after each year of service.
- Severance accrual (9.72% of integrated salary): accumulated labor liability.
In total, for every quetzal of nominal salary, the employer pays roughly Q. 1.45 to Q. 1.50 per month. If you want to calculate the exact cost for your company, use our real cost of hiring an employee in Guatemala calculator.
What is deducted from a minimum-wage worker's pay?
A minimum-wage worker has the following deductions:
- IGSS employee (4.83% of ordinary salary): on ordinary salary, not on the incentive bonus.
- ISR: Q. 0 in every minimum-wage case in 2026 (see previous section).
- Other legal deductions: union dues (if unionized), judicial garnishments, agreed advances, voluntary deductions authorized in writing.
For example, for a non-agricultural CE1 worker (Q. 4,002.28 + Q. 250 bonus):
- Gross salary: Q. 4,252.28
- (−) IGSS employee (4.83% × Q. 4,002.28): Q. 193.31
- (−) ISR: Q. 0.00
- Net take-home pay: Q. 4,058.97
Penalties for paying below the minimum wage
Government Agreement 256-2025 and the Labor Code establish severe penalties for non-compliance:
- Fines per affected worker: from 8 to 18 monthly minimum wages for non-agricultural activities, based on severity and recurrence.
- Retroactive payment: the employer must pay the worker the difference between the wage paid and the legal minimum, plus default interest.
- Sanctioning procedure: initiated by the General Labor Inspectorate of the Ministry of Labor and Social Welfare, either on its own initiative or based on a worker's complaint.
- Temporary closure: in cases of ongoing non-compliance, the establishment may be temporarily shut down.
- Joint and several liability: in production chains, principals may be jointly liable for their contractors' payments.
Special cases
Part-time workers
They receive a salary proportional to the time worked, calculated on the basis of the minimum wage corresponding to their activity and district. A 4-hour shift (50% of the daytime shift) generates a right to 50% of the minimum wage, plus pro-rata incentive bonus.
Domestic workers
The regime for household workers (Arts. 161-166 of the Labor Code) has special rules. Their conditions are set by custom, although case law has extended general labor protections. Best practice is to pay at least the corresponding minimum wage.
Agricultural workers on fixed-term or seasonal contracts
They receive the agricultural minimum wage corresponding to their district, calculated pro-rata to the time worked. The right to Bono 14, Aguinaldo and vacation is also pro-rata.
Apprentices and minors
Apprentices with an apprenticeship contract may receive a salary below the minimum during the training period, under the rules of the Labor Code. Workers between 14 and 17 years of age have reduced shifts, but the applicable minimum wage is the general one by activity.
Frequently asked questions
What is the minimum wage in Guatemala 2026?
The highest minimum wage in the country in 2026 is Q. 4,002.28 ordinary monthly (non-agricultural in CE1, Guatemala Department), plus Q. 250 incentive bonus, totaling Q. 4,252.28. The remaining amounts vary by activity and district — see the complete table at the top of the article.
When did the 2026 minimum wage take effect?
Government Agreement 256-2025 was published on December 22, 2025 and took effect on January 1, 2026, remaining in force for the entire year unless modified by a subsequent Government Agreement.
What is the difference between Economic District 1 and 2?
CE1 corresponds exclusively to the Guatemala Department; CE2 corresponds to the 21 remaining departments of the country. CE1 minimum wages are slightly higher than CE2 (between 4% and 6% higher) to reflect the higher cost of living in the capital.
Is the Q. 250 incentive bonus mandatory?
It is regulated by Decree 78-89 and its amendments. In practice, its payment and amount may vary based on employer policy. What is clear is that it does not form part of ordinary salary for IGSS, benefits (Bono 14, Aguinaldo, severance) or vacation purposes.
Do minimum-wage workers pay ISR in 2026?
No. Every minimum-wage worker in any activity and district is exempt from ISR in 2026, under the minimum living deduction combined with the extraordinary deduction of Decree 13-2026 (totaling Q. 51,024 annually). Full detail in our article on Decree 13-2026 (in Spanish).
What fines apply if I pay below the minimum wage?
Fines range from 8 to 18 monthly minimum wages per affected worker in non-agricultural activities, in addition to retroactive payment of the difference plus default interest. The General Labor Inspectorate may open the procedure on its own initiative or based on a worker's complaint.
Does the minimum wage apply to professional service contracts?
Not directly, because professional service contracts are not an employment relationship. However, if the reality of the engagement is labor in nature (subordination, fixed hours, exclusivity), the courts will apply the principle of primacy of reality and declare an employment relationship with full benefits — including retroactive payment of the minimum wage if it was not covered.
Is the minimum wage updated each year?
Yes. The minimum wage is reviewed annually by the National Wage Commission and is established by Government Agreement issued by the Executive Branch, generally published at the end of the prior year. Agreement 256-2025 governs all of 2026; a new Agreement will be issued for 2027.