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Guatemala Annual Per Capita Income
The World Bank 2010 data for
Guatemala indicates that the Gross National Income (GNI) Per Capita for
Guatemala is $2,740 and for the Lower Middle class the average annual
income is $1,619 in US dollars.
http://devdata.worldbank.org/AAG/gtm_aag.pdf .
The few earn much more than the many.
Guatemala Minimum Wage
Most of the Guatemala's
workers do not receive the minimum wage and indigenous workers receive
even less. A November 11, 2011 article in the Guatemala Times
reports that over 60% of of workers in Guatemala earn less that the minimum
wage. From the article it appears the 2010 minimum monthly wage is between $209
and $252 (between $2,508 and $3,024/year)*. "The study shows that
the monthly salary in the private sector is 8 percent below the average minimum
wage, 1, 802.99 Quetzales ($ 232.04/ month or $2,784))." The article also states that "The
(monthly) salary of the indigenous people is 1,255.38 Quetzales, ($ 161.56/month
or $1938/year),
which constitutes about 23 percent less than the national average, the report
concluded". The newspaper article is based on the National Institute of
Statistics of Guatemala (INE) 2011 annual national survey on income and
expenditures. Article :
http://www.guatemala-times.com/news/guatemala/2661-guatemala-60-percent-of-workers-earn-less-then-minimum-wage.html
. *Based on calculations derived from each of the two statements in the
article which provide inconsistent numbers for minimum month wages. (Given the
variability in the exchange rate they are probably close. Please let me know if
you know better numbers
Lynn@terraexperience.com Thanks!)
The 2011 minimum wage was
63.70 quetzales ($8.16) per day for agricultural and nonagricultural work and
59.45 quetzales ($7.61) per day for work in garment factories .
This compares to based on the
United Department of State's 2011 Country Report on Human Rights Practices (
http://www.state.gov/g/drl/rls/ ). If an employee worked 365
days a year this would translate to $2978/year. The same report states
that "In
December (2011) the (Guatemalan) National Statistics Institute
estimated that the minimum food budget for a
family of five was 2,440 quetzales ($312) per
month (or $3804/year) . The basic basket for vital needs,
including food and housing, was 4,452 quetzales
($570 or $6840/year). Labor representatives noted that even where both parents
worked, the minimum wage did not enable a family to meet the basic basket of
vital needs."
These reports are prepared annually
by the by the Departments of State's Bureau of Democracy, Human Rights, and
Labor and usually released in March of the following year. I have regularly
looked at this information. Table A summarizes the minimum daily wage from 1999
(the year Terra Experience started business) to 2011. Its not always
clear to me what assumptions go into determining the wage that the State
Department reports. But it is useful to have a consistent source of this
information from year to year. Presumably it uses a consistent method to
determine dollar exchange rate and other factors. Guatemala has some
requirements for mandatory bonuses that complicate the calculation of what the
actual minimum wage is. For example the 2011 report states "The legal
workweek is 48 hours with at least one paid 24-hour rest period.". Some years
State Department reports have clearly reported on the minimum wage with and
without these bonuses. Other years, especially more recently, this
distinction has not been made. I presume that the number they report these
years is the minimum wage with any required bonuses, but I am not sure.
The
Fair Wage Guide Calculator
The Fair Wage Guide or calculator (http://www.fairtradecalculator.com/index.php)
is a free website that helps artisans and craft buyers calculate costs and
determine if an artisan is being paid a fair wage for their labor time.
The calculator uses information about the number of hours that go into a product
and the cost of materials to determine an average wage that the artisan earns on
a product. I first learned about it in 2006 and gradually started
the concepts of the calculator with my weavers to evaluate doll huipile pricing
and design. Its a continuous improvement process.
The Fair Wage Calculator assumes a daily wage calculation based on: 40
hours per week 8 hours per day 160 hours per month 5 days per week 20 days per
month 240 days per year. Based on Fair Wage Guide information there is quite a
variability between natural minimum wages and what is considered a Non-poverty
wage in neighboring countries in Central America (Table B). The minimum wage of
Guatemala is fairly high compared to other similar countries.
Table B Fair Wage Wage in Guatemala and some other
Central America Countries
Source: Fair Wage Guide.
(http://www.fairtradecalculator.com/index.php)
based on calculations made 6/1/2012.
Table A Guatemala Annual Minimum Daily Wage from 199 to 2011*
|
US Dept
State Report Year |
Without Mandatory
Bonus |
Without Mandatory
Bonus |
With Mandatory Bonus |
With Mandatory Bonus |
|
|
|
|
|
|
Agriculture |
Non Ag. |
Agriculture |
Non Ag. |
|
Q |
US $ ** |
Q |
US $
** |
Q |
US
$
** |
Q |
US $
** |
|
2011 |
? |
? |
? |
? |
63.70 |
$8.16 |
63.70 59.45* |
$8.16 7.61* |
|
2010 |
? |
? |
? |
? |
63.70 |
$7.96 |
63.70 59.45* |
$7.96 7.43* |
|
2009 |
? |
? |
? |
? |
56 |
$6.86 |
56 51.75* |
$6.86 $6.34* |
|
2008 |
? |
? |
? |
? |
52 |
$6.73 |
52 47.75* |
$6.73 $6.18* |
|
2007 |
44.58 |
5.94 |
45.82 |
6.10 |
? |
? |
? |
? |
|
2006 |
? |
? |
? |
? |
52.91 |
6.95 |
7.12 |
52.91 |
|
2005 |
42.46 |
5.66 |
43.64
|
5.82 |
53.8 |
7.17 |
55 |
7.33 |
|
2004 |
38.6 |
4.86 |
39.7 |
4.96 |
45 |
5.63 |
46.3 |
5.79 |
|
2003 |
33. |
4.25 |
35.
|
4.56 |
43 |
5.58 |
45 |
5.87 |
|
2002 |
27.50
|
3.52
|
30. |
3.85
|
? |
? |
? |
? |
|
2001 |
25.08 |
3.24 |
27.67
|
3.57 |
30.46 |
3.93 |
32.82 |
4.32 |
|
2000 |
25.08 |
3.24 |
27.67 |
3.57 |
30.46 |
3.93
|
32.82 |
4.32 |
|
1999 |
17.86 |
2.29 |
19.71 |
2.53 |
? |
? |
? |
? |
Source:
United Department of State's Annual Country
Report on Human Rights Practices (
http://www.state.gov/g/drl/rls/ ).
* In 2008 and after the the wage for
Agricultural and Manufacturing workers has been the same with the exception of
workers in the garment industry (marked with *)
** The exchange rate between Quetzals
and United States dollar is that reported by the US Department of State
for a specific year.
The law sets national minimum wages for
agricultural and nonagricultural work and work
in garment factories. The minimum wage was 63.70
quetzales ($8.16) per day for agricultural and
nonagricultural work and 59.45 quetzales ($7.61)
per day for work in garment factories. In
December the National Statistics Institute
estimated that the minimum food budget for a
family of five was 2,440 quetzales ($312) per
month. The basic basket for vital needs,
including food and housing, was 4,452 quetzales
($570). Labor representatives noted that even
where both parents worked, the minimum wage did
not enable a family to meet the basic basket of
vital needs. The legal workweek is 48
hours with at least one paid 24-hour rest
period.
|
2010
Guatemala -
United State
Department of State's Country Reports
on Human Rights Practices
|
|
2009
Guatemala -
United State
Department of State's Country Reports
on Human Rights Practices
|
The law sets national minimum wages for agricultural and
nonagricultural work and work in garment factories.
The daily minimum wage was 52 quetzales ($6.73) per
day for agricultural and nonagricultural work and
47.75 quetzales ($6.18) per day for work in garment
factories.
The minimum wage did not provide a decent
standard of living for a worker and family. The
National Statistics Institute estimated that the
minimum food budget for a family of five was
1,976.05 quetzales ($256) per month, 18.85 percent
higher than in 2007. Labor representatives noted
that even where both parents worked, the minimum
wage did not allow the family to meet its basic
needs.
|
2007
Guatemala -
United State
Department of State's Country Reports
on Human Rights Practices
|
2006 Guatemala -
United State Department of
State's Country Reports on Human Rights
Practices
(http://www.state.gov/g/drl/rls/hrrpt/2006/78893.htm)
The law sets national minimum wages for
agricultural and nonagricultural work. The daily minimum wage was
$6.95
(52.91 quetzales) per day for agricultural work and
$7.12
(54.15 quetzales) for nonagricultural work.
The minimum wage did not provide a decent
standard of living for a worker and family. The National Statistics
Institute calculated that the minimum food budget for a family of four was
$197.40 (1,502.28 quetzales) per month, significantly above the $208
(1,587.40 quetzales) per month that could be earned at the nonagricultural
minimum wage rate. The institute's estimate of a family's total needs,
including housing, clothing, utilities, and healthcare, was $360.23
(2,741.38 quetzales). Labor representatives noted that even where both
parents worked, the minimum wage did not allow the family to meet its basic
needs.
2005
Guatemala -
United State Department of
State's Country Reports on Human Rights
Practices
http://www.state.gov/g/drl/rls/hrrpt/2005/61729.htm
The law sets
national minimum wages for agricultural and non-agricultural work.
In December President Berger ordered a 10 percent increase in the legal minimum
wage after the National Salary Committee failed to achieve consensus. The new
daily minimum wage was $5.66 (42.46
quetzales) in agriculture and $5.82
(43.64 quetzales) in non-agricultural work. In addition to the increase in base
minimum wage, the president also increased the mandatory monthly incentive bonus
for salaried employees from $14.66 (110 quetzales) to $33.33 (250 quetzales),
effectively raising the minimum wage to $7.17
(53.8 quetzales) per day for agricultural work and $7.33
(55 quetzales) for non-agricultural work.
The minimum wage did
not provide a decent standard of living for a worker and family. The Guatemalan
National Statistics Institute calculated that the minimum food budget for a
family of 4 was $202 (1,515 quetzales) per month, significantly above the $161
(1,210 quetzales) per month that could be earned at the non-agricultural minimum
wage rate. The institute's estimate of a family's total needs, including
housing, clothing, utilities, and health care was $369 (2,765 quetzales). Labor
representatives noted that even where both parents worked, the minimum wage did
not allow the family to meet its basic needs.
2004
Guatemala -
United State Department of
State's Country Reports on Human Rights
Practices
http://www.state.gov/g/drl/rls/hrrpt/2004/41762.htm
The law sets minimum
wages. Noncompliance with minimum wage provisions in the rural and informal
sectors was widespread. A 2001 government survey, the most recent available,
noted that only 60 percent of the working population received the minimum wage
or more. Advocacy groups, focused on rural sector issues, estimated that more
than half of workers engaged in day-long employment in the rural sector did not
receive the wages, benefits, and social security allocations required by law.
The Ministry of Labor
oversees a tripartite committee that makes recommendations for increases in the
minimum wage. In the event that agreement is not reached in the tripartite
commission, the Government may decree such increases based on recommendations of
the Labor Minister. The daily minimum wage was $4.86
(38.6 quetzals) in agriculture and $4.96
(39.7 quetzals) in commerce. The law requires an incentive bonus be added to
this minimum wage for all hours worked, effectively raising the daily minimum
wage to $5.63 (45 quetzals) in agriculture and $5.79
(46.3 quetzals) in commerce.
On June 30, a new
minimum wage came into force that provided increases of 21 percent for
agricultural workers and 16 percent for non-agricultural workers. The minimum
wage did not provide a decent standard of living for a worker and family. In its
2003 Human Development Report, the UNDP estimated that 57 percent of the
population lived below the poverty line and 21.5 percent in extreme poverty. The
Ministry of Labor conducts inspections to monitor compliance with minimum wage
provisions; however, the Ministry of Labor lacked the resources to enforce the
minimum wage law adequately.
2003
Guatemala -
United State Department of
State's Country Reports on Human Rights
Practices
http://www.state.gov/g/drl/rls/hrrpt/2003/27900.htm
Although the law sets minimum wages,
noncompliance with minimum wage provisions in the rural and informal sectors
was widespread. A 2001 government survey, the most recent available, noted
that only 60 percent of the working population received the minimum wage or
more. Advocacy groups, focused on rural sector issues, estimated that more
than half of workers engaged in day-long employment in the rural sector do
not receive the wages, benefits, and social security allocations required by
law. Minimum wage and working hour protection laws do not extend to domestic
workers; however, in May, the President submitted a bill to Congress that
would do so. It remained pending at year's end.
The Ministry of Labor oversees a tripartite
committee that makes recommendations for increases in the minimum wage. In
the event that agreement is not reached in the tripartite commission, the
Government may decree such increases based on recommendations of the Labor
Minister. The daily minimum wage was $4.25 (33
quetzals) in agriculture and $4.56 (35
quetzals) in commerce. The law requires an incentive bonus be added
to this minimum wage for all hours worked, effectively raising the daily
minimum wage to $5.58 (43 quetzals) in
agriculture and $5.87 (45 quetzals) in
commerce. In November, the President authorized a new minimum wage
(effective January 1, 2004) that provided increases of 21 percent for
agricultural workers and 16 percent for non-agricultural workers. For day
shift workers, the standard 6-day workweek is 44 hours; for night shift
workers, it is 36 hours; for swing shift workers, it is 42 hours.
Time-and-a-half pay is required for overtime work.
The minimum wage was not sufficient to
provide a decent standard of living for a worker and family. In its Human
Development Report issued in September, the UNDP estimated that 57 percent
of the population live below the poverty line and 21.5 percent in extreme
poverty. The Ministry of Labor conducts inspections to monitor compliance
with minimum wage provisions; however, the Ministry of Labor lacked the
resources to enforce the minimum wage law adequately.
An estimated 75 percent of workers were in
the informal sector and were therefore completely without labor protections.
Only 24.6 percent of workers were covered by the National Social Security
System in 2001, according to the Labor Ministry.
2002
Guatemala -
United State Department of
State's Country Reports on Human Rights
Practices
http://www.state.gov/g/drl/rls/hrrpt/2002/18333.htm
Although the law sets minimum wages,
noncompliance with minimum wage provisions in the rural and informal sectors
is widespread. A May 2001 government survey of employment and income
revealed that only 60 percent of the working population received the minimum
wage or more. As minimum wage provisions have become more complex through
inclusion of a monthly "incentive bonus", and as the minimum wage has risen
during the year and with a deepening economic crisis affecting the
coffee-growing sector, noncompliance with the law, which was already high,
has risen. Advocacy groups that focus on rural sector issues estimate that
more than half of workers engaged in day-long employment in the rural sector
do not receive the wages, benefits, and social security allocations required
by law. Minimum wage laws do not extend to domestic workers.
The Ministry of Labor oversees a tripartite
committee that makes recommendations for increases in the minimum wage. In
the event that agreement is not reached in the tripartite commission, the
Government may decree such increases based on recommendations of the Labor
Minister. The 2000 Labor Code reforms placed responsibility for drafting the
decrees setting new minimum wage levels, should there be no consensual
proposal submitted by the tripartite commission, on the Labor Ministry. On
January 1, a minimum wage increase, promulgated by executive branch decree
after the tripartite commission was unable to reach a consensus, took
effect. This decree raised the minimum daily wage for agricultural work by
$0.31 (2.42 quetzals) to $3.52 (27.50
quetzals). It raised the minimum daily wage for service, industrial, and
government sector work by $0.29 (2.33 quetzals) to $3.85
(30.00 quetzals). In August 2001, the Government decreed a mandatory
monthly bonus for all workers of $31.25 (250 quetzals) from a previous level
of $20.20 (162 quetzals) for agricultural workers and $19.30 (154 quetzals)
for nonagricultural workers.
The minimum wage was not sufficient to
provide a decent standard of living for a worker and family. According to
the UNDP, at least 80 percent of the population, including approximately 60
percent of working population, lives below the poverty line. The Ministry of
Labor conducts inspections to monitor compliance with minimum wage
provisions; however, the Ministry of Labor lacks the resources to enforce
adequately the minimum wage law.
An estimated 70 percent of workers are in the
informal sector, and are therefore completely without labor protections.
Only 21 percent of workers were covered by the National Social Security
System (IGSS) in 2000, according to the Labor Ministry.
2001
Guatemala -
United State Department of
State's Country Reports on Human Rights
Practices
http://www.state.gov/g/drl/rls/hrrpt/2001/wha/8344.htm
The
law sets minimum wages; however, noncompliance with minimum wage provisions
in the rural and informal sectors is widespread. As minimum wage provisions
have become more complex through inclusion of a monthly "incentive bonus"
and as the minimum wage has risen during the year and with a deepening
economic crisis affecting the coffee growing sector, noncompliance with the
law, which was already high, also has risen. Advocacy groups that focus on
rural sector issues estimate that more than half of workers engaged in day
long employment in the rural sector do not receive the wages, benefits, and
social security allocations required by law. Minimum wage laws do not extend
to domestic workers.
The Ministry of Labor oversees a tripartite committee, made up of formal
sector representatives of labor and management, that makes recommendations
for increases in the minimum wage. In the event that agreement is not
reached in the tripartite commission, the Government may decree such
increases. The Labor Code reforms adopted in May placed responsibility for
drafting the decrees setting new minimum wage levels, should there be no
consensual proposal submitted by the tripartite commission, on the Labor
Ministry.
On December 16, 2000, a minimum wage increase, promulgated by Executive
Branch decree after the tripartite commission was unable to reach a
consensus, took effect. This decree raised the minimum daily wage for
agricultural work by $0.45 (3.46 quetzals) to $3.24
(25.08 quetzals). It raised the minimum daily wage for service,
industrial, and government sector work by $0.49 (3.82 quetzals) to
$3.57 (27.67 quetzals). In March 2000, the
Congress mandated by decree an incentive bonus that augments the minimum
wage by paying for each hour worked--$0.09 (0.6725 quetzals) per hour for
agricultural workers and $0.08 (0.64375 quetzals) per hour for industrial
and other workers. The legal minimum wage for a regular 8-hour day then
became $3.93 (30.46 quetzals) for agricultural
work and $4.32 (32.82 quetzals) for service,
industrial, and government sector work. On August 6, the Government decreed
an increase in the mandatory monthly bonus for all workers to $31.25 (250
quetzals) from a previous level of $20.20 (162 quetzals) for agricultural
workers and $19.30 (154 quetzals) for non-agricultural workers.
The minimum wage was not sufficient to provide a decent standard of
living for a worker and family. According to the UNDP, at least 80 percent
of the population, including approximately 60 percent of the employed, lives
below the poverty line. The Ministry of Labor conducts inspections to
monitor compliance with minimum wage provisions; however, the Ministry of
Labor lacks the resources to enforce adequately the minimum wage law.
2000
Guatemala
-
United State Department of
State's Country Reports on Human Rights Practices
http://www.state.gov/g/drl/rls/hrrpt/2000/wha/775.htm
The law sets minimum wages; however, noncompliance with minimum wage
provision in the rural and informal sectors is widespread. The Ministry of
Labor oversees a tripartite committee, which includes formal sector
representatives of labor and management, and makes recommendations for
increases in the minimum wage. In the event that agreement is not possible,
the Government may decree such increases. The Executive Branch promulgated
the most recent minimum wage increase by decree, after the tripartite
commission was unable to reach a consensus, and it took effect on December
16. This decree raised the minimum daily wage for agricultural work by $0.45
(3.46 quetzals) to $3.24 (25.08 quetzals). It
raised the minimum daily wage for service, industrial, and government sector
work by $0.49 (quetzals 3.82) to $3.57 (27.67
quetzals). In March the National Legislature mandated by decree an
incentive bonus that augments the minimum wage. This decree increased the
minimum wage by ordering that an incentive bonus be paid for each hour
worked--$0.09 (0.6725 quetzals) per hour for agricultural workers and $0.08
(0.64375 quetzals) per hour for industrial and other workers. This raises
the legal minimum wage for a regular 8-hour day to
$3.93 (30.46 quetzals) for agricultural work and
$4.32 (32.82 quetzals) for service, industrial,
and government sector work. The minimum wage was not sufficient to provide a
decent standard of living for a worker and family. According to the UNDP, at
least 80 percent of the population live below the poverty line, including
approximately 60 percent of those employed. In November MINUGUA reported
that a minimum wage adequate for feeding a family of six would have to be
nearly 80 percent higher than the current minimum wage. MINUGUA also
reported that a minimum wage also adequate for clothing, sheltering, and
educating a family of six would have to be nearly 225 percent higher than
the current minimum wage.
1999
Guatemala -
United State Department of
State's Country Reports on Human Rights Practices
http://www.state.gov/g/drl/rls/hrrpt/1999/388.htm
Although the law sets minimum wages, the legally mandated minimum wage
for most unskilled and semiskilled workers is not always paid. A tripartite
committee representing labor and management in specific economic sectors and
overseen by the Ministry of Labor, is named each year to make
recommendations for increases in the minimum wage. In the event that
agreement is not possible, the Government may decree such increases.
President Arzu implemented the most recent minimum wage increase by decree,
after the commission was unable to reach a consensus, and it took effect on
February 1. The basic rate is $2.53 (19.71 quetzals)
for industrial workers for an 8-hour workday, including a required
hourly bonus, and is $2.29 (17.86 quetzals) per
day plus mandatory productivity bonuses for agricultural workers. The
minimum wage is not sufficient to provide a decent standard of living for a
worker and family. According to the United Nations Development Program, at
least 80 percent of the population lives below the poverty line, including
approximately 60 percent of those employed.
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