By: Alexandra Haeussler

On Monday, January 16, 2023, the Ministry of Labor and Social Security published in the Official Gazette the Central America Agreement number 9-2023. The Board of Directors of the Guatemalan Social Security Institute establishes a new Registration Regulation, which sets the rules and requirements to carry out the registration of employers and employees in the Social Security Regime.

Through the Agreement 9-2023, the Ministry of Labor and Social Security published Agreement number 1529 of Director Guatemalan Social Security Institute (IGSS), which consists of a regulation for the issuance of a Single Social Security Registry of employers and employees.

The published agreement objective consists in the extension of coverage in the compliance of the Guatemalan Institute of Social Security with the Human Right to Social Security, thus guaranteeing the effective application of the Organic Law of said entity.

Important aspects of said governmental agreement

1. To achieve the effect of the single registry of employees and employers, electronic registry systems will be used, but documents and physical information may be required to be annexed to the physical file.
2. There shall be a Personal Electronic Folio for each registered employer, as well as a personal electronic folio for each affiliated worker.

All employers are obliged to register and enroll their employees as soon as the labor relationship begins.

• The labor contribution must be discounted from the salaries, and the employer’s contribution must be reported to the IGSS.
• Every registered worker must have a Unique Social Security Registration Number, which will correspond to the Unique Identification Code (CUI) of his person.
• Every registered worker must have a Unique Social Security Registration Number, which corresponds to the Unique Identification Code (CUI) of his person.

The registration must be made by the employer electronically or presential at the Registration of Employers and Workers Department, Departmental Boxes and Delegations of the Guatemalan Institute of Social Security, and in case the employer does not comply, said entity must make the registration ex officio.

Requirements for Mandatory Inscription

– Individuals

a. Submit a digital copy or simple photocopy of the Personal Identification Document (DPI) of the owner or co-owners.

b. For foreigners, to present a digital copy or simple photocopy of the passport.

c. Submit a ratified proof of the Unified Tax Registry (Registro Tributario Unificado, RTU).

d. Present a company’s commercial license (in the case of merchants); and a mandate or power of attorney in the case of joint ownership of companies.

– Legal entities

For legal entities, State entities, Embassies and Consular Corps, the following must be submitted:

1. Digital copy or simple photocopy of documentation proving legal representation.
2. Digital copy or simple photocopy of DPI of the legal representative or passport if foreigner.
3. Company and business license, when applicable, and registration number in the Commercial Registry.
4. Ratified proof of the entity’s RTU.
5. For Embassies: Passport of the ambassador; ratified proof of the RTU of the Embassy; document from the Ministry of Foreign Affairs in which states that the embassy is accredited before the Government of Guatemala.

Special regulations to determine the quality of the employer

1. For the construction sector: The regulations establish that the owner of the construction will have the quality of an employer when there is no construction contract. The contractor will have the quality of an employer if there is a written contract.
2. For the agricultural sector, the tenant of a farm is defined as an employer for the term of the lease.

All the employers and workers inscriptions that as of Tuesday, January 18, 2023 (beginning of the effective date) are formally incorporated into the Social Security Regime, maintain their legal status. Employers must register within 30 days from the effective date of the agreement.

This agreement substitutes number 1123 issued by the IGSS Board of Directors and because of such substitution or derogation, the exemption enjoyed by the salaries paid to legal representatives registered in the IGSS and where shareholders of corporations disappear at the same time.