GUATEMALA

This report updates the Anker Living Wage Reference Value for urban Guatemala to 2023. This was GTQ 4,646 (USD 603) for 2022 in the original report, comprised of a Net Living Wage of GTQ 4,401 (USD 571), plus a social security contribution of GTQ 245 (USD 32). The updated Anker Gross Living Wage for 2023 is GTQ 4,800 (USD 612) per month, comprised of a Net living Wage of GTQ 4,540 (USD 579), plus GTQ 260 (USD 33) in mandatory pay deductions which would need to be paid by law as a contribution to the state health fund (4.83%) and income tax (5%). It is worth noting that a worker’s contribution to social security (4.83%) is considered as a deductible expense for income tax purposes and in addition there is a GTQ 4,000 monthly deduction. Inflation in this period was 3.2% and it increased the Net Living Wage. Without accounting for inflation, the Living Wage estimated in 2022 would not be sufficient for families to have a basic but decent standard of living in 2023, because the purchasing power of the Living Wage would have decreased. Mandatory deductions were calculated using the most up-to-date tax laws.