Legal framework for overtime
- Constitution of the Republic, Article 102 paragraph g — right to the overtime surcharge.
- Labor Code (Decree 1441):
- Art. 116–119 — definition and duration of the ordinary day, night and mixed shifts.
- Art. 120 — regime of extraordinary work.
- Art. 121 — calculation formula: 50% surcharge over the ordinary salary.
- Art. 122 — limits on extraordinary work.
- Art. 126–127 — weekly rest day and holidays.
- Decree 78-89 — Incentive Bonus (mandatory Q. 250 monthly), which is not included in the overtime calculation base.
The three ordinary work shifts
Before calculating overtime, you need to know how many hours make up the worker's ordinary shift, because any hour exceeding that shift is overtime.
| Shift | Schedule | Daily | Weekly |
|---|---|---|---|
| Day | 6:00 – 18:00 | 8 hours | 44 hours |
| Night | 18:00 – 6:00 | 6 hours | 36 hours |
| Mixed | covers day and night portions (night portion may not exceed 4 hours) | 7 hours | 42 hours |
If a mixed shift has more than 4 hours during night hours, it is considered a night shift and the 6-hour maximum applies.
The overtime formula (Art. 121)
Overtime hour = Ordinary hourly salary × 1.5
The 50% surcharge is applied over the value of one normal hour of the worker's ordinary shift.
Step 1 — Calculate the ordinary hourly salary
Divide the monthly ordinary salary by the days in the month, then by the daily shift hours:
- Day shift: Monthly salary ÷ 30 ÷ 8 = hourly salary
- Night shift: Monthly salary ÷ 30 ÷ 6 = hourly salary
- Mixed shift: Monthly salary ÷ 30 ÷ 7 = hourly salary
Step 2 — Apply the 50% surcharge
Multiply the hourly salary by 1.5 to get the value of each overtime hour.
Step 3 — Multiply by overtime hours worked
Hourly salary × 1.5 × number of overtime hours = total to pay.
Practical example
Worker on a day shift, monthly ordinary salary of Q. 5,000.00, who worked 10 overtime hours in the month:
- Ordinary hourly salary: Q. 5,000 ÷ 30 ÷ 8 = Q. 20.83
- Overtime hourly salary (with 50% surcharge): Q. 20.83 × 1.5 = Q. 31.25
- Total overtime to pay: Q. 31.25 × 10 = Q. 312.50
Use the calculator below to get the exact result in seconds. Compatible with day, night or mixed shifts, with automatic verification of legal limits.
Interactive overtime calculator
Special cases: rest day and holidays
Work on the weekly rest day
Article 126 establishes the right to a paid weekly rest day (typically Sunday). If the worker labors on that day, under Article 127 they must be paid at double the ordinary salary, without prejudice to the right to a compensatory day off.
Work on a holiday
Official holidays (January 1, Holy Thursday and Good Friday, May 1, June 30, September 15, October 20, November 1, December 24 and 25, December 31, and the local festive day) are mandatory paid rest days. Work on a holiday is paid at double the ordinary salary.
Combination: overtime on a rest day or holiday
If the worker labors on their rest day or on a holiday and also exceeds the normal shift for that day, the hours that exceed the shift are paid at double + an additional 50% surcharge. This requires case-by-case analysis — we recommend seeking legal advice when it occurs.
Legal limits on extraordinary work
Article 122 sets clear limits the employer must respect:
- Maximum 4 overtime hours per day.
- Maximum 12 overtime hours per week.
- Extraordinary work must be exceptional, not routine.
Working beyond these limits does not release the employer from the obligation to pay the hours actually worked — work performed is always paid. But it exposes the employer to:
- Administrative sanctions from the Ministry of Labor.
- Labor lawsuits for violation of the maximum shift.
- Constructive dismissal claims if the worker resigns due to the overload.
Who is exempt from the overtime regime?
Article 124 excludes certain workers from the shift regime and, therefore, from overtime pay:
- Trusted personnel or senior management (managers, directors, department heads exercising command functions).
- Workers in positions of surveillance or requiring permanent availability outside the company's normal hours.
- Those who work without immediate higher-level supervision.
Important: merely labeling someone as "trusted personnel" in the contract is not enough — the actual nature of the duties must be verified. Courts analyze case by case, and many positions titled "head" or "manager" in practice are still entitled to overtime pay.
Common mistakes that create labor contingencies
- Not recording hours worked: without formal attendance control, overtime hours are presumed in favor of the worker in a lawsuit.
- Paying overtime at the same rate as ordinary hours: void. The 50% surcharge is non-waivable (Art. 12).
- Compensating with time off instead of paying: only valid if the worker accepts voluntarily; the subsequent claim still applies.
- Labeling everyone as "trusted personnel": a simulation that courts dismantle, ordering payment of overtime for several years.
- Not including overtime on the IGSS payroll: an accounting error that triggers IGSS observations and fines.
- Calculating on an incorrect daily salary: forgetting that the daily salary is monthly ÷ 30, or failing to include permanent commissions/bonuses in the base.
Practical tips for employers
- Attendance control system: biometric, app or punch card. Without an objective record, overtime is left to the judge's discretion in a dispute.
- Internal approval policy: overtime requires prior written authorization from the direct supervisor. This prevents claims for unauthorized hours.
- Payment on the bi-weekly or monthly payroll: overtime is paid in the same period in which it was generated; it does not accumulate.
- Reflect it on the payslip: with details (number of hours and amount), to avoid non-compliance claims.
- Periodic labor audit: an annual review of the shift and overtime payment regime prevents larger contingencies.
Frequently asked questions
What is the overtime surcharge in Guatemala?
Article 121 of the Labor Code establishes that overtime is paid with a 50% surcharge over the ordinary hourly salary — that is, one overtime hour equals 1.5 times the value of a normal hour of the worker's regular shift.
How many overtime hours can I work per day?
Maximum 4 overtime hours per day and 12 hours per week (Art. 122). Working more is illegal and exposes the employer to penalties, without releasing the obligation to pay the hours worked.
Does the Q. 250 incentive bonus enter the calculation?
No. The incentive bonus from Decree 78-89 (Q. 250 monthly) does not form part of the ordinary salary for overtime calculation purposes, according to prevailing case law. The base is salary + commissions + permanent bonuses (not the incentive bonus, not Bono 14, not Aguinaldo).
How is work on a rest day or holiday paid?
Double the ordinary salary (Arts. 126–127), without prejudice to the compensatory day off when applicable. This surcharge is distinct from the 50% overtime surcharge and can be combined when the worker also exceeds the day's normal shift.
What is the ordinary work shift in Guatemala?
Day (8h/day, 44h/week, 6:00–18:00), night (6h/day, 36h/week, 18:00–6:00) or mixed (7h/day, 42h/week, covering both day and night portions with the night portion not exceeding 4h).
Does overtime pay ISR and IGSS?
Yes, unlike Bono 14 and Aguinaldo. Overtime is part of taxable salary, so it pays ISR (when the worker exceeds the exempt minimum) and employer and worker IGSS contributions are deducted.
Can I agree with my worker to pay overtime at the same rate as ordinary hours?
No. The 50% surcharge is a non-waivable right (Art. 12). Any agreement that reduces overtime to a lower value is void. Overtime must be paid with the surcharge even if the contract said otherwise.
What happens if I do not pay overtime correctly?
The worker can claim the amount owed plus interest and damages through a labor lawsuit. MINTRAB can sanction the employer. If the situation persists, it constitutes just cause for the worker to resign with the right to severance pay (constructive dismissal).