Bono 14 — formally the "Annual Bonus for Private and Public Sector Workers" — was created by Decree 42-92 of the Congress of the Republic. It is a mandatory, non-waivable benefit exempt from ISR (income tax) and IGSS (social security), which the employer must pay to every dependent employee during the first half of July each year. The amount equals one month of ordinary salary for workers who completed the full period, and is pro-rated for those who worked less.
Use the calculator below to obtain the exact Bono 14 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 Bono 14 calculator
What is Bono 14 in Guatemala?
Bono 14 (also known as the "Annual Bonus" or "Bono Catorce") is a labor benefit established by Decree 42-92 of the Congress of the Republic in 1992. Its popular name comes from the fact that, in practice, it represents a fourteenth paycheck in the Guatemalan work year (alongside the Aguinaldo Christmas bonus, which is the "thirteenth").
Bono 14 is:
- Mandatory: applies to every dependent employee in the private and public sectors.
- Non-waivable: the right cannot be renounced or reduced by individual or collective agreement.
- Exempt from ISR (income tax): 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 worked the full period, or pro-rata for those who worked less.
Bono 14 accrual period
Under Article 1 of Decree 42-92, Bono 14 accrues over the period from July 1 of the prior year to June 30 of the current year. This means:
- The Bono 14 paid in July 2026 corresponds to the period July 1, 2025 – June 30, 2026.
- The Bono 14 paid in July 2027 will correspond to the period July 1, 2026 – June 30, 2027.
- And so on.
Official Bono 14 formula
The simplified formula, established in Guatemalan labor practice:
Bono 14 = Ordinary Salary × (Days worked ÷ 360)
Where:
- Ordinary salary includes base pay, habitual commissions, and permanent bonuses that form part of the salary. It does NOT include the Q. 250 incentive bonus (Decree 78-89), genuine reimbursable expenses, or sporadic payments.
- Days worked are counted from the hire date (or the prior July 1, whichever is later) to June 30 of the current year (or the termination date, whichever is earlier).
- 360 = 12 months × 30 days (standard commercial month for labor calculations).
Typical calculation cases
Case 1: Worker with one year or more at the company
If the worker was hired before July 1 of the prior year, they covered the full period and are entitled to the full Bono 14: one month of ordinary salary.
Example: worker hired on March 15, 2024, salary Q. 5,000 monthly. For the July 2026 Bono 14: they covered the full period (Jul 1, 2025 – Jun 30, 2026). Bono 14 = Q. 5,000.
Case 2: Worker hired during the period
If the worker was hired between July 2 of the prior year and June 30 of the current year, they are entitled to a pro-rata amount from the hire date.
Example: worker hired on January 1, 2026, salary Q. 5,000. For the July 2026 Bono 14: days worked from Jan 1 to Jun 30 = 181 days. Bono 14 = Q. 5,000 × (181 ÷ 360) = Q. 2,513.89.
Case 3: Worker who terminates before July
If employment ends before the Bono 14 payment, the employer must pay the pro-rata amount for the time worked in the current period. This applies regardless of the reason (resignation, dismissal, mutual agreement).
Example: worker hired on October 15, 2024, terminates on April 30, 2026, salary Q. 5,000. For Bono 14: computable period Jul 1, 2025 – Apr 30, 2026 = 304 days. Pro-rata Bono 14 = Q. 5,000 × (304 ÷ 360) = Q. 4,222.22.
When is Bono 14 paid?
Decree 42-92 establishes that Bono 14 must be paid during the first half of July each year. The exact date is at the employer's discretion within that window.
Failure to pay on time exposes the employer to:
- Fines from the Ministry of Labor proportional to the severity of the breach.
- Late interest on the amount owed.
- Allows the worker to resign with just cause (Art. 79 of the Labor Code) and demand full severance.
- Reputational damage and exposure to collective claims.
Does Bono 14 pay ISR or IGSS?
No. Bono 14 is expressly exempt from both:
- Exempt from ISR (income tax): Article 70 paragraph "a" of the Tax Update Law (Decree 10-2012) establishes that labor benefits like Bono 14, Aguinaldo, and severance pay are exempt from Income Tax up to the legal limit.
- Exempt from IGSS, IRTRA and INTECAP: no employer or worker contribution applies. The worker receives the full amount without deductions.
This exemption is what makes Bono 14 one of the most valuable benefits in the Guatemalan labor system: a full month of net salary, with no deductions.
Special cases
Workers with variable salary
For workers with commissions or salaries that vary significantly month to month, the recommended practice is to calculate the base salary as the average of the last 6 months. This avoids disputes and aligns with the methodology used for severance pay (Art. 82 Labor Code).
Part-time workers
They receive a pro-rata Bono 14 on the salary they actually earned. The formula is the same — only the base salary changes.
Domestic workers
The special regime for household employees (Arts. 161-166 Labor Code) has been extended by case law to include the right to pro-rata Bono 14, although historically there were exceptions. The recommended practice is to pay it in all cases to avoid conflict.
Apprentices
Apprentices with an apprenticeship contract are entitled to pro-rata Bono 14 on the salary they receive during the training period.
Common mistakes when calculating Bono 14
- Including the Q. 250 incentive bonus in the base salary: Decree 78-89 expressly excludes it from benefit calculations.
- Forgetting habitual commissions: even if not in the contract, if they were paid regularly, they form part of the salary.
- Calculating over 365 days instead of 360: the labor formula uses the commercial month. 365 yields a slightly different result.
- Failing to pay a worker who resigned before July: the right to pro-rata Bono 14 is non-waivable and must be paid in the settlement.
- Paying after July 15: non-compliance exposes the employer to fines and allows the worker to resign with severance rights.
- Deducting IGSS or ISR from Bono 14: it is exempt. Any deduction is illegal.
Frequently asked questions
What is the Bono 14 formula?
Bono 14 = Ordinary Salary × (Days worked during the period ÷ 360). If the worker covered the full period, it equals one month of salary.
When is Bono 14 paid?
During the first half of July each year, under Decree 42-92.
What happens if the worker did not complete a full year?
If hired during the accrual period (July 1 prior – June 30 current), they are entitled to pro-rata Bono 14 from the hire date.
Does Bono 14 pay ISR or IGSS?
No. It is exempt from both. The worker receives it in full.
What is included in the base salary?
Ordinary salary, habitual commissions and permanent bonuses. The Q. 250 incentive bonus and genuine reimbursable expenses are NOT included.
What if the worker resigned before the payment?
The employer must pay pro-rata Bono 14 for the time worked in the current period, regardless of the reason for termination. The right is non-waivable.