Severance (indemnización) calculator (Guatemala)

What this calculator does

Calculates your severance for time served in Guatemala. It equals one month of salary per year of continuous service, with the proportional share for fractions of a year, with no statutory cap (Labor Code art. 82).

The base salary is augmented with the "ventajas económicas": the monthly alícuota of the aguinaldo and the bono 14. Since each equals one monthly salary, the base is salary × 14/12.

Who it is for

• Workers who want to estimate their severance in case of dismissal.
• Employers and HR staff who calculate final settlements.
• Labor advisors and students who need a clear, traceable calculation.

What information you need

• Your average ordinary monthly salary (without the Q250 incentive bonus).
• The full years of continuous service.
• The additional months of the current year (0 to 11) for the proportional part.

How it is calculated

The salary is augmented with the ventajas: base = monthly salary × (1 + aguinaldo/12 + bono 14/12) = salary × 14/12 ≈ 1.1667.

The total length of service is computed: full years + months ÷ 12.

Severance is the augmented base × one month per year × the total length of service.

Formula

Augmented base

base = monthly salary × 14/12

Length of service

total years = years + months ÷ 12

Severance

severance = base × total years

Worked example

You earn Q5,000 per month and have 3 full years of service.

1. Augmented base = Q5,000 × 14/12 = Q5,833.33.
2. Length of service = 3 years.
3. Severance = Q5,833.33 × 3 = Q17,500.00.

Your severance is Q17,500.00, compared with Q15,000.00 if only the plain salary (without the ventajas económicas) were used.

How to interpret the result

Severance applies in dismissal without just cause and after the trial period (the first two months).

The augmented base (× 14/12) is the dominant interpretation in case law and practice; the Code fixes the components (6 months of aguinaldo and of bono 14) but not the exact ÷12 arithmetic.

Severance is exempt from ISR (Income Tax Law art. 70 num. 2) and is not subject to IGSS.

Common mistakes

• Using only the plain salary without augmenting it with the aguinaldo and bono 14 ventajas económicas.
• Including the Q250 incentive bonus in the base: it is not salary.
• Applying ISR or withholding IGSS from the severance: it is exempt and excluded.

Frequently asked questions

Sources

• Código de Trabajo (Decreto 1441), arts. 82 y 90 — indemnización y ventajas económicas — Organismo Judicial de Guatemala (CENADOJ, Edición Conmemorativa) (Art. 82: un mes de salario por cada año de servicios continuos, proporcional por fracciones; base = promedio de los últimos 6 meses; sin tope. Art. 90: las ventajas económicas se presumen el 30% del salario. See docs/research/gt-labor-rules.md, section 7.)
• Decreto 76-78 art. 9 y Decreto 42-92 art. 4 — integración del aguinaldo y del bono 14 — Congreso de la República de Guatemala (The aguinaldo (D.76-78 art. 9) and the bono 14 (D.42-92 art. 4) integrate into the art. 82 base in the proportion corresponding to 6 months of service. The dominant practitioner arithmetic — base = promedio + aguinaldo/12 + bono14/12 (≈ ×1.1667) — is jurisprudence/practice (verified-secondary), disclosed in the calculator methodology. See docs/research/gt-labor-rules.md, section 7.)
• Ley de Actualización Tributaria (Decreto 10-2012), art. 70 num. 2 — Organismo Judicial de Guatemala (CENADOJ, texto consolidado) (The indemnización por tiempo servido is fully exempt from ISR (art. 70 num. 2) and excluded from the IGSS base. See docs/research/gt-labor-rules.md, sections 2.5 and 7.3.)

Last reviewed:

July 23, 2026

Calculation version:

1.0.0

Important notice

The results of these calculators are informative estimates and may differ from official calculations. They do not constitute legal, tax, or financial advice. Always verify with the competent institutions or a professional.

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