By: Susan Cifuentes

On January 16, 2023, was published the Governmental Agreement 9-2023 of the Labor and Social Security Ministry in the Official Gazette, which approves the 1529 agreement of Guatemalan Social Security Institute (IGSS) Board Directors, establishing the following:

  • IGSS Inscription of employers: without exceptions, It is an obligation for all employers to register in the IGSS.
  • Ex Officio Registration: If the employers are not registered, the Department of Registration of Employers and Workers will use the inter-institutional cooperation agreements (SAT, Commercial Registry, and other sources of information) to make the corresponding inscription from the new company’s incorporation.
  • Workers request for registration: the worker or employees may request their registration as affiliates before the Institute (the IGSS will register them as affiliates if they can prove their labor relationship by means of an employment contract).
  • Employers’ registry updates: Provisions are established for cancellation of registrations, modifications, suspension of registration, resumption of registration or termination of registration. Which must be made within 10 business days following the date on which the actual update to the registry was given.
  • Shareholders and partners: Shareholders or partners who provide services to the company receiving a salary or fees are subject to the Social Security Regime and consequently to be registered as affiliates.
  • Fines: The Regulations establish penalties equivalent to Q.500.00 or US$65.00 for employers who fail to comply with certain social security obligations and register employers late.

This agreement supersedes Agreement 1123 of the IGSS Board of Directors and became effective on January 16, 2023.