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Blessed with a younger, vibrant labor pressure, Guatemala is quick changing into one of the vital engaging outsourcing locations in Central America.
The common wage in Guatemala is 10,500 GTQ (Guatemalan Quetzal) monthly, roughly US {Dollars} 1335.30 monthly (primarily based on the change fee in October 2022).
As compared, the common wage in Chile is 2318.80 US {Dollars} monthly. It’s no marvel Guatemala is starting to rival different outsourcing hotspots in South America.
On this article, we’ll discover the common wage in Guatemala (vary, percentile, and median). We’ll additionally focus on the way it differs throughout numerous components similar to business, career, work expertise, and placement.
Lastly, we’ll discover why Guatemala will be your very best outsourcing location.
Let’s get began.
What’s the common wage in Guatemala?
The annual common wage in Guatemala is round 126,000 GTQ (16 089.81 US {Dollars}). This determine typically contains normal advantages similar to transportation, housing, and lease.
In keeping with the World Financial institution, Guatemala is the most important financial system in Central America and enjoys fairly good financial stability. The World Financial institution classifies Guatemala as an higher middle-income nation with a GDP of 4,603 US {Dollars} per capita (as recorded in 2020).
Now let’s have a look at another thrilling features of Guatemalan salaries.
1. Common wage vary
Salaries in Guatemala vary from 2,650 GTQ (338.40 US {Dollars}) to 46,800 GTQ (5,976.21 US {Dollars}) monthly.
To be clear, 2,650 GTQ monthly is the bottom common wage, however the minimal wage could also be a lot decrease. Likewise, 46,800 GTQ monthly is the best common wage, however the most wage will be a lot larger.
2. Median wage
The median wage is a determine that considers many salaries and studies the center quantity in that set of salaries.
The median wage in Guatemala is 11,100 GTQ (1,417.44 US {Dollars}) monthly.
It implies that half of Guatemala’s inhabitants earns lower than 11,100 GTQ whereas the opposite half earns greater than 11,100 GTQ.
3. Wage percentile
Wage percentiles present how a lot a sure share of the whole inhabitants in any nation earns. Probably the most vital wage percentiles are typically the twenty fifth and seventy fifth percentiles.
In keeping with Wage Explorer’s 2022 wage survey information, about 25% of the inhabitants in Guatemala earns lower than 6,190 GTQ (790.44 US {Dollars}), and 75% earns greater than 6,190 GTQ.
Moreover, the survey acknowledged that 75% of the inhabitants earns lower than 30,700 GTQ (3920.29 US {Dollars}), whereas 25% earns greater than 30,700 GTQ.
4. Common annual wage increment
The annual wage increment fee provides us a tough thought of a rustic’s wage increment patterns over time. In Guatemala, workers typically obtain a median wage enhance of seven% each 19 months.
Nonetheless, an worker’s business and expertise vastly affect wage increment charges. Let’s have a look:
A) Business
Typically, workers in industries similar to banking and IT take pleasure in larger raises persistently.
Listed here are some examples of annual increment charges throughout numerous industries in Guatemala:
Business | Common Annual Increment Price |
Banking | 8% |
Power | 7% |
Textiles | 7% |
Data Know-how | 6% |
Healthcare | 5% |
Journey | 4% |
Development | 3% |
Schooling | 2% |
Supply: salaryexplorer.com
B) Work expertise
Workers with a better work expertise take pleasure in larger increment charges than their much less skilled counterparts.
Expertise Degree | Common Annual Increment Price |
Prime Administration | 15% – 20% |
Senior Degree | 10% – 15% |
Mid-Profession | 6% – 9% |
Junior Degree | 3% – 5% |
Supply: salaryexplorer.com
5. Common hourly wage
The common hourly wage in Guatemala is 60 GTQ. This fee implies that an worker typically earns a median wage of 60 GTQ for each labored hour.
6. Minimal wage
Guatemala has a government-mandated minimal wage. This mandated minimal wage ensures that workers are assured a typical dwelling wage. Employers are inspired to pay professionals truthful wages or threat the scrutiny of the state.
- For agricultural employees, the minimal wage is 11.27 GTQ per hour, 94.44 GTQ per day, and a pair of,872.55 GTQ monthly.
- For non-agricultural actions, the minimal wage is 11.61 GTQ per hour, 97.29 GTQ per day, and a pair of,959.24 GTQ monthly.
- For export and maquila actions, the minimal wage is 10.61 GTQ per hour, 88.91 GTQ per day, and 2,704.35 GTQ monthly.
Now, let’s take a better have a look at the components that have an effect on salaries in Guatemala.
Components that affect wage ranges in Guatemala
A number of variables, together with a person’s work expertise, training, business, and metropolis of residence, affect the common wage in Guatemala.
Let’s dive deeply into these variables affecting Guatemala’s common wage.
1. Work expertise
Work expertise is essential in figuring out salaries in Guatemala.
- Professionals with 2 to five years of expertise earn 32% greater than entry-level workers throughout sectors.
- Workers with 5 or extra years of expertise earn 36% greater than their much less skilled counterparts.
- Workers with 10 years of expertise earn 21% greater than these with 5 years or extra years of expertise.
- Workers with 15 years or extra earn 14% greater than these with these 10 years of expertise.
2. Schooling stage
There’s a distinction within the wage earned by individuals with larger ranges of training than these with decrease ranges.
- Workers with a certificates or diploma make 17% greater than their counterparts who solely graduated highschool.
- Workers who maintain a Bachelor’s diploma earn 24% greater than these with certificates and diplomas.
- Professionals with a Grasp’s diploma earn 29% greater than these with a Bachelor’s diploma.
- Lastly, these with PhDs earn 23% greater than these with a Grasp’s diploma.
3. Public sector vs. non-public sector
Individuals who maintain positions within the public sector earn 11% greater than those that maintain positions within the non-public sector.
Right here’s the distinction between the revenue earned by public sector and personal sector workers in Guatemala.
Sector | Common Earnings (Month-to-month) |
Personal | 10,000 GTQ |
Public | 11,100 GTQ |
Supply: salaryexplorer.com
4. Business
The common revenue in Guatemala can differ drastically amongst totally different industries.
Business | Common Earnings (Month-to-month) |
Pharmaceutical | 14,100 GTQ |
Setting | 11,100 GTQ |
Data Know-how | 10,500 GTQ |
Mining & Metallurgy | 9,430 GTQ |
Telecommunication | 9,230 GTQ |
Import and Export | 8,570 GTQ |
Car | 6,840 GTQ |
Electrical and Electronics Commerce | 6,660 GTQ |
Administration | 6,220 GTQ |
Development | 6,160 GTQ |
Supply: salaryexplorer.com
5. Career
Listed here are the common month-to-month salaries for various jobs in Guatemala.
Job Title | Common Month-to-month Wage |
Dentist | 23,400 GTQ |
Advertising Supervisor | 18,000 GTQ |
Gross sales Supervisor | 17,900 GTQ |
Human Sources Supervisor | 14,800 GTQ |
Monetary Analyst | 12,800 GTQ |
Net Developer | 10,800 GTQ |
Venture Supervisor | 10,100 GTQ |
Graphic Designer | 6,020 GTQ |
Nursery Trainer | 3,670 GTQ |
Supply: salaryexplorer.com
Observe: All wage and wage estimates on this article are merely tips primarily based on wage surveys. Particular person salaries and wages can differ primarily based on location, years of expertise, training, job title, price of dwelling in a selected place, and different components.
Now that we have now a greater image of the wage patterns in Guatemala, let’s discover why Guatemala is the perfect outsourcing vacation spot to your firm.
3 outstanding causes for outsourcing to Guatemala
Listed here are the highest three the reason why you must contemplate outsourcing to Guatemala:
1. Value discount
Because the COVID-19 pandemic and international recession wrecks havoc on enterprise operation bills, outsourcing has turn into a viable choice to lower prices.
Outsourcing-friendly nations typically have decrease wage charges, which helps firms to chop prices considerably. For instance, the common month-to-month wage in the US is 7,900 US {Dollars} whereas it’s 1335.30 US {Dollars} in Guatemala.
So, you may minimize month-to-month prices by outsourcing work to Guatemalan workers and dedicate it to your small business improvement.
You possibly can additional cut back prices by benefiting from the decrease company revenue tax in Latin America. The company revenue tax in Guatemala is 25%, which is significantly decrease than within the UAE (55%) and Bangladesh (30%).
2. Elevated enterprise attain
Guatemala is the perfect outsourcing vacation spot in Central America resulting from its location and proximity to nations in North America like the US. It makes it simpler to faucet into the profitable US market.
The multilingual inhabitants can also be an enormous benefit. Spanish is often the primary language of Guatemalan workers, whereas English is their second language, so the nation could be a appropriate outsourcing companion for international groups.
3. Expert labor pressure
22% of the youth in Guatemala are enrolled in 14 of the highest larger studying establishments. These establishments are unfold throughout 50 areas within the nation, together with Guatemala Metropolis and Antigua.
The scholars are often proficient in areas similar to humanities, engineering, and IT.
The native authorities additionally performs a vital position in nurturing younger expertise. Universidad Del Valle de Guatemala, among the finest high-tech universities within the area, has partnered up with Campus Tec as a way to generate telecommunications alternatives for college kids.
Moreover, the federal government has partnered with a nonprofit group, FUNDESA, and has put in over 12,000 computer systems in over 900 public colleges so younger children can purchase laptop literacy earlier.
4. Favorable authorities schemes
Guatemala welcomes overseas capital funding. The federal government has constructed a number of schemes and initiatives that assist companies obtain their objectives with minimal restrictions and rules.
The U.S.-Dominican Republic and Central America Free Commerce Settlement (CAFTA-DR) is an funding coverage involving the US and a lot of nations similar to Costa Rica, El Salvador, Guatemala, Honduras, and others.
This coverage was created to make sure stronger funding ties and guarantee equal prosperity for all.
Past that, the federal government has granted workers advantages similar to social safety, healthcare, and paid depart for public holidays. These advantages are designed to make sure that workers are motivated to ship high-quality outsourcing companies.
Prime 3 industries that generally outsource to Guatemala
Guatemala is quickly changing into a outstanding outsourcing vacation spot in Latin America.
Listed here are some main outsourcing industries within the nation which have confirmed to be inexpensive and efficient in a brief span of time.
1. Name heart
With a younger labor pressure and over 20 years of expertise in delivering high-quality name heart companies, Guatemala has turn into a premium outsourcing location within the name heart business.
Name heart companies supplied within the nation embrace:
- Customer support.
- Tech help.
- Market analysis and gross sales.
These companies are comparatively cheaper in Guatemalan cities than what you’ll discover in lots of main cities internationally. For instance, name heart service charges in New York vary from 26-30 US {Dollars} per hour, whereas they vary from 9-20 US {Dollars} in Guatemala.
2. Enterprise course of outsourcing
As Guatemala’s technological capability will increase, it’s rapidly changing into an thrilling, inexpensive BPO hub.
In 2021, The nation generated roughly 4.5 million U.S. Dollars value of BPO-related income.
BPO companies offered in Guatemala embrace:
- Accounting and monetary companies.
- Buyer care.
- Payroll companies.
3. Software program improvement
Though the software program improvement business in Guatemala remains to be in its infancy, it is likely one of the fastest-growing sectors within the nation.
Curiously, Guatemalan firms that specialised in technical companies similar to software program improvement grew by virtually 10% throughout the pandemic.
Some widespread software program improvement companies embrace:
- Customized Software program Improvement.
- Net Utility Improvement.
- Data know-how consultancy.
These software program improvement companies can price you a fortune in developed nations just like the UK. In the UK, software program improvement charges vary from 30-50 British Kilos hourly. Nonetheless, in Guatemala, the hourly software program improvement fee is roughly 7 British Kilos(55 GTQ), making it a cheap various.
Closing ideas
With affordable common salaries, Guatemala is beginning to rival low-cost outsourcing hotspots similar to Argentina, South Korea, the Democratic Republic of South Africa, and nations within the Center East.
Moreover, Guatemala grants you simpler entry to the US market, a budding expertise pool, and a booming name heart market.
You should use this text to grasp the common salaries in Guatemala and gauge whether or not Guatemala is the perfect outsourcing vacation spot for your small business wants.