✅ 110% of the urban Canasta Básica Alimentaria family (Q3,845.30/month)
⚠️ Only 46% of the urban Canasta Ampliada family (Q9,309.46/month — adds housing, transport, health, etc.)
Conclusion: A single minimum wage covers a family's basic food but NOT all needs. Roughly 2.2 minimum wages are required to cover the urban Canasta Ampliada.
This page compares — with verified official data — the 2026 minimum wage in Guatemala against the real cost of the basic basket published by the Instituto Nacional de Estadística (INE). The central question: how much does a Guatemalan minimum wage actually cover of a family’s needs?
TL;DR: Per INE (January 2026), the urban Canasta Básica Alimentaria (basic food basket) costs Q924.35 per person per month, and the Canasta Ampliada (with housing, transport, health, etc.) costs Q2,237.85. A Non-Agricultural CE1 minimum wage (Q4,252.28/month) covers the family food basket for a 4.16-member household (Q3,845.30) at 110%, but covers the expanded basket (Q9,309.46) at only 46%. The practical conclusion: an urban Guatemalan family needs roughly 2.2 minimum wages to cover all basic needs. Data verified against Banguat and INE.
Key data (January / May 2026)
| Indicator | Urban | Rural |
|---|---|---|
| Canasta Básica Alimentaria per capita/month (INE Jan 2026) | Q924.35 | Q713.40 |
| Canasta Básica Ampliada per capita/month (Orshansky 2.421/1.968) | Q2,237.85 | Q1,403.97 |
| Reference household size | 4.16 people | 4.80 people |
| Daily calories covered | 2,052 kcal | 2,172 kcal |
| CBA family monthly total | Q3,845.30 | Q3,424.32 |
| CAU/CAR family monthly total | Q9,309.46 | Q6,739.06 |
| Non-Agricultural CE1 min wage | Q4,252.28 | (Applies CE2: Q4,066.90) |
| Agricultural CE1 min wage | Q4,041.20 | (Applies CE2: Q3,875.89) |
| Maquila CE1 min wage | Q3,659.73 | (Applies CE2: Q3,471.10) |
The basic basket explained — what INE actually publishes
Canasta Básica Alimentaria (CBA)
The CBA is a set of foods constituting the minimum needed to meet a person’s energy and protein requirements, adjusted to Guatemalan cultural eating patterns, purchasing power, and local price/availability.
Important 2024 change: INE updated the methodology. Key changes:
- Reference population determined via deficiencies (carencias) rather than income
- Now includes spending on food and beverages outside the home (previously excluded)
- Uses median prices instead of average prices
- Segments the basket into urban and rural separately
January 2026 data:
- Urban CBA (CBAU): Q924.35 per person/month — 66 products / 2,052 kcal / reference household of 4.16 members
- Rural CBA (CBAR): Q713.40 per person/month — 60 products / 2,172 kcal / reference household of 4.80 members
- 14 food groups analyzed (excluding alcoholic beverages)
Composition of the urban CBA (January 2026)
| Food group | Cost/person/month |
|---|---|
| Meat, poultry, fish, eggs | Q196.46 |
| Food and drinks outside the home | Q199.42 |
| Bread and cereals | Q155.71 |
| Non-alcoholic beverages (water, soda, juice) | Q150.32 |
| Vegetables | Q60.11 |
| Fruits | Q35.70 |
| Milk and dairy | Q28.61 |
| Misc food products (soups, salt, sauces) | Q26.53 |
| Legumes (beans) | Q22.72 |
| Roots and tubers (potatoes) | Q15.69 |
| Basic grains (rice) | Q13.71 |
| Sugars | Q12.48 |
| Fats and oils | Q6.89 |
| TOTAL | Q924.35 |
Canasta Básica Ampliada (CA)
The CBA covers only food. But a family also needs housing, transport, health, education, clothing, and other expenses. The Canasta Ampliada is calculated by multiplying the CBA by the Orshansky coefficient.
| Urban | Rural | |
|---|---|---|
| CBA per capita/month | Q924.35 | Q713.40 |
| Orshansky coefficient | × 2.421 | × 1.968 |
| CA per capita/month | Q2,237.85 | Q1,403.97 |
The Orshansky coefficient assumes food represents roughly 41% of urban spending and 51% of rural spending in reference-population households (per ENIGH 2022-2023 data). The rest (~59% urban / 49% rural) covers all other needs.
Definitive comparison: minimum wage vs baskets (2026)
Urban household of 4.16 members (CE1 — Guatemala department)
| Item | Monthly value | % covered by wage |
|---|---|---|
| Non-Agricultural CE1 minimum wage | Q4,252.28 | 100% |
| Family CBA (Q924.35 × 4.16) | Q3,845.30 | 110% ✅ |
| Family CA (Q2,237.85 × 4.16) | Q9,309.46 | 46% ⚠️ |
Interpretation: A single Non-Agricultural CE1 minimum wage allows a family of 4.16 people to cover basic food (110% coverage), but does NOT cover housing, transport, health, education, clothing, or unexpected expenses. An urban family needs 2.2 minimum wages (~Q9,355) to cover the expanded basket.
Rural household of 4.80 members (CE2 — rest of the country)
| Item | Monthly value | % covered by wage |
|---|---|---|
| Agricultural CE2 minimum wage | Q3,875.89 | 100% |
| Family CBA (Q713.40 × 4.80) | Q3,424.32 | 113% ✅ |
| Family CA (Q1,403.97 × 4.80) | Q6,739.06 | 57% ⚠️ |
Rural interpretation: The rural agricultural minimum wage covers 113% of family food but only 57% of the expanded basket. Better than the urban case due to lower housing and transport costs, but still insufficient for full coverage from a single income.
Maquila / Export household, CE1
| Item | Monthly value | % covered by wage |
|---|---|---|
| Maquila CE1 minimum wage | Q3,659.73 | 100% |
| Family CBA (Q924.35 × 4.16) | Q3,845.30 | 95% ⚠️ |
| Family CA (Q2,237.85 × 4.16) | Q9,309.46 | 39% ❌ |
Critical case: the maquila/export minimum wage does NOT cover even the urban family food basket (falls 5% short). This is structural in the export sector, which historically has had a lower differentiated wage to “incentivize exports.” A maquila worker in an urban setting needs supplementary income (second job, multiple earners in the household, remittances).
Why the minimum wage doesn’t cover the expanded basket — an honest analysis
Factor 1: Economic structure
Guatemala is a lower-middle-income country where annual GDP per capita (~$5,500 USD) is comparable to countries with similar minimum wages. The minimum wage reflects the general remuneration level of the economy, not a minimum family subsistence floor.
Factor 2: Methodological difference
The INE CBA is based on a reference family of 4.16 members urban / 4.80 rural. In reality, many households have multiple earners: parents + adult children working, both spouses employed, or remittance supplements from family abroad. The “1 wage for 4 people” framing overstates pressure on a single income.
Factor 3: Q250 incentive bonus frozen since 1989
The Bonificación incentivo of Q250 monthly (Decreto 78-89) has not been adjusted since 1989 — 37 years. In real terms, that 1989 figure would be worth more than Q3,000 in 2026 if indexed to inflation. Any serious minimum wage reform must address this fossilized component.
Factor 4: Massive informality
About 60% of the Guatemalan economy operates informally per BANGUAT and CIEN. Informal workers receive neither minimum wage, nor IGSS, nor Bono 14, nor Aguinaldo. The minimum wage analysis applies to a formal-sector minority.
Factor 5: Wage vs total household income
Average household income in reference-population households (ENIGH 2022-2023) typically comes from:
- Formal wages (40-55%)
- Informal work / self-employment (25-35%)
- Family remittances (10-25% in households with migrants)
- Government transfers and other (5%)
A single minimum wage should not be interpreted as total household income — it’s only one portion.
Historical Wage vs Basket (Non-Agricultural CE1)
Comparative evolution 2020-2026 (adjust for inflation when comparing):
| Year | Non-Agri CE1 wage | Approx urban CBA (estimated) | Family coverage |
|---|---|---|---|
| 2020 | Q3,075.10 | ~Q780 × 4.16 = Q3,245 | ~95% ⚠️ |
| 2021 | Q3,075.10 (no increase) | ~Q820 × 4.16 = Q3,411 | ~90% ⚠️ |
| 2022 | Q3,209.24 | ~Q870 × 4.16 = Q3,619 | ~89% ⚠️ |
| 2023 | Q3,388.81 | ~Q900 × 4.16 = Q3,744 | ~91% |
| 2024 | Q3,572.50 | ~Q920 × 4.16 = Q3,827 | ~93% |
| 2025 | Q3,922.32 | ~Q920 × 4.16 = Q3,827 | ~102% |
| 2026 | Q4,252.28 | Q924.35 × 4.16 = Q3,845 | 110% ✅ |
(2020-2024 CBA figures are approximations — INE methodology changed substantially in 2024. The 2026 figure is verified directly from INE.)
Observation: The 2025 (+9.8%) and 2026 (+8.4%) minimum wage increases finally pushed the Non-Agricultural CE1 minimum wage above the family food basket after years of insufficient coverage. The maquila/export sector remains behind.
Quick calculator — where does your sector stand
To check whether your wage covers your baskets:
- Identify your sector: Non-Agricultural, Agricultural, or Maquila/Export
- Identify your economic zone: CE1 (Guatemala department) or CE2 (other departments)
- Count household members: how many people depend on the income
- Calculate CBA = (Q924.35 urban or Q713.40 rural) × number of members
- Calculate CAU/CAR = (Q2,237.85 urban or Q1,403.97 rural) × number of members
- Compare to your wage or total household income
What to do if your wage doesn’t cover your needs
Legal options
- Confirm you receive the minimum wage — if your employer pays less, file a complaint at MINTRAB (complaint guide)
- Claim Bono 14 + Aguinaldo — these are mandatory additional rights (~2 extra base salaries/year)
- Check workday and overtime — Labor Code Art. 116 (8h daytime max), overtime at 50% premium
- Request IGSS coverage — right from day 1 of formal employment
Income supplement options
- Free technical training — INTECAP offers short courses in better-paying trades
- MINTRAB Temporary Work Program — temporary jobs in the US or Canada (3-12 months) with higher wages
- Formalize commercial activity — if you have an informal business, formalizing as Individual Merchant or S.R.L. opens access to credit, formal contracts, and corporate suppliers
- Diaspora — family remittances — if you have relatives in the US, establishing an efficient channel (Wise/Remitly) minimizes fees
For diaspora in the US — how much to send home
If you live in the US and send remittances to Guatemala, understanding the real cost of living in quetzales helps calibrate amounts:
| To cover… | Suggested USD amount (at Q7.62/USD) |
|---|---|
| Canasta Básica Alimentaria for 1 person/month | ~$121 USD/month |
| Canasta Ampliada for 1 person/month | ~$294 USD/month |
| Family CBA for urban household (4.16 people)/month | ~$505 USD/month |
| Full Family CA urban household/month | ~$1,222 USD/month |
| Partial supplement (50% of family CA urban) | ~$611 USD/month |
| Subsistence support (1 Non-Agri CE1 minimum wage) | ~$558 USD/month |
Send options:
- Live remittance comparison — daily updated rates
- Banguat exchange rate — official daily reference
- For sends > $500 monthly: Wise wins on exchange rate
- For sends $100-300: Xoom or Remitly typically win on total received
Limitations of this analysis
For transparency, the following caveats:
- INE updated methodology in 2024. Pre-2024 historical comparisons are approximate. The 2026 figure (Q924.35 CBAU) is verified directly from the official January 2026 report.
- Orshansky coefficients are a statistical proxy, not an exact measurement of real family cost. Actual spending varies by city, demographic profile, and household consumption patterns.
- The “1 wage for 4 people” framing overstates pressure: many households have multiple earners. The correct indicator is TOTAL household income divided by members.
- Informal economy not included: roughly 60% of Guatemala’s economy operates outside the formal system — the legal minimum wage does not apply to those workers.
- The Q250 bonus has been frozen since 1989 — distorting any real comparison against inflation. Any structural reform must address this component.
Sources
- Instituto Nacional de Estadística (INE) — “Canasta Básica Alimentaria - CBA - Enero 2026” (published February 2026). Available at ine.gob.gt.
- Ministerio de Trabajo y Previsión Social (MINTRAB) — Acuerdo Gubernativo Número 256-2025, published in the Diario Oficial December 22, 2025.
- Código de Trabajo de Guatemala — Decreto 14-41, Articles 103-113, 116, 271.
- Decreto 78-89 del Congreso — Ley de Bonificación Incentivo (Q250).
- Banco de Guatemala (Banguat) — exchange reference rate Q7.62/USD (May 2026).
- Orshansky methodology — ENIGH 2022-2023.
- Verified: May 2026.