Understanding your prestaciones laborales (labor benefits) is essential for every worker in Guatemala. When an employment relationship ends, whether through dismissal, resignation, or mutual agreement, the worker is entitled to a final payment that includes several components mandated by law. In Guatemala this final payment is called the liquidacion.
Guatemala’s labor benefits are established in the Codigo de Trabajo (Labor Code) and supplementary decrees. The four main components are: indemnizacion (severance, only for unjust dismissal), aguinaldo (Christmas bonus, proportional), Bono 14 (mid-year bonus, proportional), and vacaciones (vacation pay, proportional). Each component has its own formula based on the worker’s salary and time of service.
Deadlines matter. The Codigo de Trabajo (Arts. 258-264) sets prescription periods that run against you: claims against the employer over a dismissal or a disciplinary measure prescribe in 30 business days from the end of the contract (dismissal) or from when the measure was imposed (disciplinary measure) (Art. 260); the right to quit with just cause (indirect dismissal) in 20 business days from when the employer gave the reason (Art. 261); rights arising from the employment contract, a collective agreement or the internal work rules in 4 months from the end of the contract (Art. 263); and rights arising directly from the Code or other labor laws in 2 years from the event (Art. 264). Corrected 24 September 2026: this page said all labor claims prescribe in 3 months; the Code sets the periods above.
Quick summary: Key benefits: indemnizacion (1 salary/year for unjust dismissal), aguinaldo (proportional), Bono 14 (proportional), and vacation pay (proportional). Claims against a dismissal prescribe in 30 business days from the end of the contract (Codigo de Trabajo, Art. 260).
Formulas verified March 2026 using Acuerdo Gubernativo 256-2025 salary minimums.
Components of Your Liquidacion
| Benefit | Formula | When Owed |
|---|---|---|
| Indemnizacion | 1 month salary per year worked | Unjust dismissal only |
| Aguinaldo | Proportional (Dec 1 to Nov 30 cycle) | Always |
| Bono 14 | Proportional (Jul 1 to Jun 30 cycle) | Always |
| Vacaciones | 15 days salary proportional to months worked | Always |
| Bonificacion incentivo | Q250/month (prorated to termination date) | Always |
| Unpaid wages | Any days worked but not yet paid | Always |
| Overtime | 1.5x rate for any unpaid overtime hours | If applicable |
How to Calculate Each Component
Indemnizacion (Severance — unjust dismissal only)
- Formula: (Average monthly salary of last 6 months) x (Years worked)
- For partial years: proportional (e.g., 2 years and 6 months = 2.5 months of salary)
- Only owed when the employer fires you WITHOUT just cause
Aguinaldo (Christmas Bonus)
- Full amount: 1 month salary (earned Dec 1 to Nov 30)
- Proportional: (Monthly salary / 12) x months worked in the current cycle
- Paid in two halves: 50% in the first half of December and 50% in the second half of the following January (Decreto 76-78, Art. 2), unless the employer pays 100% in December; when the job ends, the proportional part is owed immediately (Art. 5)
Bono 14 (Mid-Year Bonus)
- Full amount: 1 month salary (earned Jul 1 to Jun 30)
- Proportional: (Monthly salary / 12) x months worked in the current cycle
- Paid by July 15 each year
Vacaciones (Vacation Pay)
- Entitlement: 15 working days per year of continuous service
- Proportional: (15 days salary / 12) x months worked
- Workers who have NOT taken their vacation are owed the cash equivalent
- Salary base: the average of ordinary and extraordinary pay earned in the last year, or in the last three months if you work for an agricultural or livestock business (Art. 134)
Requirements to Request Calculation
- DPI of the worker
- Employment contract or any evidence of the labor relationship
- Pay stubs from the last 6 months (if available)
- Exact dates of employment start and end
Step-by-Step Process
- Ask your employer for the calculation in writing, each item separately, plus the work certificate of Art. 87 (start and end dates, kind of work, last pay).
- Check it against the formulas above before signing a finiquito (Art. 12 voids waivers of workers’ rights).
- Go to the Inspeccion General de Trabajo if you disagree or are not paid: it answers workers’ questions on how the labor laws apply (Art. 279) and no lawyer is needed there (Art. 278). We could not verify the Ministry’s own calculation-service page (it blocked our requests on September 26, 2026).
- Labor Tribunals, if there is no agreement. If you were fired and the employer alleged a just cause it cannot prove in court, Art. 78 adds, as damages, the wages you stopped earning from the dismissal until severance is paid, up to a maximum of 12 months of salary, plus court costs.
What You Get If You Resign vs. Are Fired
| Benefit | Unjust Dismissal | Voluntary Resignation |
|---|---|---|
| Indemnizacion | YES | NO |
| Aguinaldo (proportional) | YES | YES |
| Bono 14 (proportional) | YES | YES |
| Vacation pay (proportional) | YES | YES |
| Bonificacion incentivo | YES | YES |
| Unpaid wages | YES | YES |
Edge Cases & Special Situations
Details
Under Art. 79 of the Codigo de Trabajo, if the employer substantially changes your working conditions (reduces salary, changes schedule without consent, creates unsafe conditions, or harasses you), you can resign and claim this as an ‘indirect dismissal’ (despido indirecto). You are then entitled to full indemnizacion as if you were unjustly fired. Document everything — dates, witnesses, written communications — before resigning, and act quickly: the right to end the contract with just cause prescribes in 20 business days from when the employer gave the reason (Codigo de Trabajo, Art. 261).
Details
Never sign a voluntary resignation letter (renuncia voluntaria) if you are being fired. By signing, you lose your right to indemnizacion. If you are pressured, refuse to sign, leave the premises, and immediately go to the Inspeccion General de Trabajo to file a complaint.
Details
Yes. Under Guatemalan labor law, the employment relationship is proven by the fact of work, not by a written contract. Even without a contract, you are entitled to all prestaciones. Evidence of the relationship includes text messages from your employer, photos at the workplace, witness testimony from coworkers, bank deposits from the employer, or any other proof that you worked there.
Tips & Common Mistakes
- ACT WITHIN 30 BUSINESS DAYS. Claims against a dismissal prescribe in 30 business days from the end of the contract (Codigo de Trabajo, Art. 260); other rights have 4 months (Art. 263) or 2 years (Art. 264). Do not delay.
- Get a calculation from the Ministerio de Trabajo, not from your employer. The Inspeccion uses the legal formulas impartially.
- Your salary includes commissions and bonuses. If you receive commissions, tips, or regular bonuses, these should be included in the salary base for calculating prestaciones. The base period depends on the benefit: indemnizacion uses the average of the last 6 months, while vacation pay uses the average of ordinary and extraordinary pay earned in the last year (the last three months in an agricultural or livestock business) (Codigo de Trabajo, Art. 134).
- “Just cause” for dismissal is narrowly defined. The Codigo de Trabajo lists specific reasons for justified dismissal (Art. 77): fraud, violence, criminal acts, abandonment, etc. Being “let go” because the company is downsizing is NOT just cause and entitles you to indemnizacion.
- Domestic workers have the same rights. Domestic employees (household workers) are entitled to all the same prestaciones: aguinaldo, Bono 14, vacations, and indemnizacion for unjust dismissal.