Aguinaldo is the oldest and most emblematic annual labor benefit in Guatemalan labor law, regulated by the Aguinaldo Benefit Regulation Law (Decree 76-78). It is a mandatory, non-waivable benefit exempt from ISR (income tax) and IGSS (social security), which the employer must pay to every dependent worker. The amount equals one month of ordinary salary for those who covered the full period, and is pro-rated for those who worked less.
Use the calculator below to obtain the exact Aguinaldo amount owed to your employee. The calculator factors in the hire date: if the worker was hired during the current accrual period, it automatically calculates the pro-rata amount from the valid start date.
Interactive Aguinaldo calculator
What is Aguinaldo in Guatemala?
Aguinaldo is the oldest annual labor benefit in Guatemalan labor law, regulated by the Aguinaldo Benefit Regulation Law (Decree 76-78). It functions as a thirteenth paycheck: in practice, Guatemalan workers receive 14 salaries a year (12 ordinary + Aguinaldo + Bono 14).
Aguinaldo is:
- Mandatory: applies to every dependent worker in the private and public sectors.
- Non-waivable: the right cannot be renounced or reduced by individual or collective agreement.
- Exempt from ISR: under Art. 70 paragraph "a" of the Tax Update Law.
- Exempt from IGSS: no employer or worker contribution applies.
- Equal to one month of ordinary salary for those who covered the full period, or pro-rata for those who worked less.
Aguinaldo accrual period
Under Decree 76-78, Aguinaldo accrues over the period from December 1 of the prior year to November 30 of the current year. This means:
- The 2026 Aguinaldo corresponds to the period December 1, 2025 – November 30, 2026.
- The 2027 Aguinaldo will correspond to the period December 1, 2026 – November 30, 2027.
- And so on.
Official Aguinaldo formula
Aguinaldo = Ordinary Salary × (Days worked ÷ 360)
Where:
- Ordinary salary includes base pay, habitual commissions, and permanent bonuses that form part of the salary. The Q. 250 incentive bonus (Decree 78-89), genuine reimbursable expenses, and sporadic payments are NOT included.
- Days worked are counted from the hire date (or the prior December 1, whichever is later) to November 30 of the current year (or the termination date, whichever is earlier).
- 360 = 12 months × 30 days (standard commercial month).
Typical calculation cases
Case 1: Worker with one year or more at the company
If the worker was hired before December 1 of the prior year, they covered the full period. Full Aguinaldo = one month of ordinary salary.
Example: worker hired on March 15, 2024, salary Q. 5,000. For Aguinaldo 2026: they covered the full period. Aguinaldo = Q. 5,000.
Case 2: Worker hired during the period
If hired between December 2 of the prior year and November 30 of the current year, they receive pro-rata from the hire date.
Example: worker hired on June 1, 2026, salary Q. 5,000. For Aguinaldo 2026: days worked from Jun 1 to Nov 30 = 183 days. Aguinaldo = Q. 5,000 × (183 ÷ 360) = Q. 2,541.67.
Case 3: Worker who terminates before December
If employment ends before the Aguinaldo payment, the employer must pay the pro-rata amount for the time worked in the current period.
Example: worker hired on March 15, 2026, terminates August 31, 2026, salary Q. 5,000. Aguinaldo 2026: period Dec 1, 2025 – Aug 31, 2026, but the effective start is Mar 15, 2026 (hire date). Days = 170. Pro-rata Aguinaldo = Q. 5,000 × (170 ÷ 360) = Q. 2,361.11.
When is Aguinaldo paid?
Decree 76-78 establishes that Aguinaldo is paid in two installments:
- 50% during the first half of December of the current year.
- 50% during the second half of January of the following year.
The employer may also pay 100% in December if preferred — the law only sets maximum limits for each installment. If employment ends before December, the full pro-rata Aguinaldo must be paid in the final settlement.
Failure to pay on time exposes the employer to:
- Fines from the Ministry of Labor.
- Late interest on the amount owed.
- Allows the worker to resign with just cause (Art. 79) and demand full severance.
Does Aguinaldo pay ISR or IGSS?
No. Aguinaldo is expressly exempt from both:
- Exempt from ISR (income tax): Art. 70 paragraph "a" of the Tax Update Law (Decree 10-2012).
- Exempt from IGSS, IRTRA and INTECAP: Decree 76-78 expressly establishes this.
The worker receives the full amount without deductions.
Difference between Aguinaldo and Bono 14
Both are very similar mandatory annual bonuses, but with key differences:
Combined, they add up to two additional months of salary per year, completely free of deductions.
Special cases
Workers with variable salary
For workers with commissions or variable pay, the practice is to calculate the base salary as the average of the last 6 months, aligned with the severance methodology (Art. 82 Labor Code).
Part-time workers
They receive a pro-rata Aguinaldo on the salary they actually earned. The formula is the same; only the base salary changes.
Domestic workers
The special regime (Arts. 161-166 Labor Code) has been extended by case law to include the right to Aguinaldo. The recommended practice is to always pay it.
Common mistakes when calculating Aguinaldo
- Including the Q. 250 incentive bonus in the base salary.
- Forgetting habitual commissions that form part of the salary.
- Calculating over 365 days instead of 360.
- Failing to pay a worker who resigned before December.
- Paying the entire Aguinaldo after December 15 without considering the two-installment rule.
- Deducting IGSS or ISR from Aguinaldo — it is exempt.
Frequently asked questions
What is the Aguinaldo formula?
Aguinaldo = Ordinary Salary × (Days worked during the period ÷ 360). If the worker covered the full period, it equals one month of salary.
When is Aguinaldo paid?
50% during the first half of December and 50% during the second half of January of the following year, under Decree 76-78. The employer may pay the entire amount in December if preferred.
What happens if the worker did not complete a full year?
If hired during the accrual period (December 1 prior – November 30 current), they are entitled to pro-rata Aguinaldo from the hire date.
Does Aguinaldo pay ISR or IGSS?
No. It is exempt from both. The worker receives it in full.
What is the difference between Aguinaldo and Bono 14?
Both are mandatory and equal to one month of salary, but Aguinaldo (Decree 76-78) accrues from December to November and is paid 50% in December + 50% in January. Bono 14 (Decree 42-92) accrues from July to June and is paid in the first half of July.
What if the worker resigned before the payment?
The employer must pay pro-rata Aguinaldo for the time worked in the current period, regardless of the reason for termination. The right is non-waivable.