Guatemala

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1969, implemented on a national level in 1977.

Current law: 2003 (old-age, disability, and survivors).

Type of program: Social insurance system.

Coverage

Employees, including agricultural workers and some public-sector employees.

Voluntary coverage for self-employed persons.

Special system for other public-sector employees.

Source of Funds

Insured person: 1.83% of covered earnings.

The minimum earnings for contribution calculation purposes are equal to the minimum daily wage.

The minimum daily wage is 52 quetzales.

There are no maximum earnings for contribution calculation purposes.

Self-employed person: Voluntary contributions of 5.5% of declared earnings.

The minimum earnings for contribution calculation purposes are equal to the minimum daily wage.

The minimum daily wage is 52 quetzales.

There are no maximum earnings for contribution calculation purposes.

Employer: 3.67% of covered payroll.

The minimum earnings for contribution calculation purposes are equal to the minimum daily wage.

The minimum daily wage is 52 quetzales.

There are no maximum earnings for contribution calculation purposes.

Government: 25% of the cost of benefits; also contributes as an employer.

Qualifying Conditions

Old-age pension: Age 60 with at least 180 months of contributions.

There is no early or deferred pension.

The pension is not payable abroad.

Disability pension: The insured must be assessed with a disability and have at least 36 months of contributions in the 6 years before the disability began.

The disability pension is awarded according to two degrees of disability: total disability, involving the loss of at least 66.7% of earning capacity; and severe disability, involving the complete loss of earning capacity and the need for the constant attendance of another person.

Constant-attendance supplement: Paid if the insured has a severe disability requiring the constant attendance of others to perform daily functions.

The pension is not payable abroad.

Survivor pension: The deceased had at least 36 months of contributions in the last 6 years or was receiving or was entitled to receive the old-age pension at the time of death.

The widow(er)'s pension ceases on remarriage.

Old-Age Benefits

Old-age pension: The pension is 50% of the insured's average earnings in the last 60 months plus 0.5% for each 6-month period of contributions exceeding 120 months.

Dependent's supplement: 10% of the insured's pension is paid for a wife or partner or a disabled husband, for each child younger than age 18 (no age limit if disabled), and for a dependent mother and a dependent, disabled father who are not pensioners under this program.

The minimum monthly pension, including supplements, is 340 quetzales.

The maximum monthly pension, including supplements, is 4,800 quetzales.

The maximum pension received by a family is 80% of the insured's earnings, up to 6,000 quetzales.

Schedule of payments: Twelve payments a year plus a December bonus of 500 quetzales.

Benefit adjustment: Benefits are adjusted periodically according to a financial assessment of the program.

Permanent Disability Benefits

Disability pension: For a total disability, the pension is 50% of the insured's average earnings in the last 36 months plus 0.5% for each 6-month period of contributions exceeding 120 months. If the insured has worked for less than 36 months, the total number of months worked is used for benefit calculation purposes.

Dependent's supplement: 10% of the insured's pension is paid for a wife or partner or a disabled husband, for each child younger than age 18 (no age limit if disabled), and for a dependent mother and a dependent, disabled father who are not pensioners under this program.

The minimum monthly pension, including supplements, is 340 quetzales.

The maximum monthly pension, including supplements, is 4,800 quetzales.

Constant-attendance supplement: 25% of the insured's pension is paid.

Schedule of payments: Twelve payments a year, plus a December bonus of 500 quetzales.

Benefit adjustment: Benefits are adjusted periodically according to a financial assessment of the program.

Survivor Benefits

Survivor pension: The widow(er)'s pension is 50% of the total disability or old-age pension the deceased received or would have been entitled to receive.

The minimum monthly widow(er)'s pension is 170 quetzales.

Orphan's pension: Each orphan younger than age 18 (no age limit if disabled) receives 25% of the deceased's pension; 50% for each full orphan.

The minimum monthly orphan's pension is 85 quetzales; 170 quetzales for a full orphan.

Dependent parent's pension: Each parent receives 25% of the deceased's pension.

The minimum monthly pension for a dependent parent is 85 quetzales.

All survivor benefits combined must not exceed 100% of the deceased's pension; the sum of the minimum monthly pensions must not exceed 340 quetzales.

Schedule of payments: Twelve payments a year, plus a December bonus of 500 quetzales.

Funeral grant: A lump sum of 600 quetzales is paid.

Benefit adjustment: Benefits are adjusted periodically according to a financial assessment of the program.

Administrative Organization

Ministry of Labor and Social Welfare (http://www.mintrabajo.gob.gt) provides general supervision.

Social Security Institute (http://www.igssgt.org) administers the program.

Sickness and Maternity

Regulatory Framework

First law: 1952 (maternity and children).

Current law: 1964 (sickness and maternity), implemented in 1968, with 2003 amendment.

Type of program: Social insurance system.

Coverage

Employees of firms with three or more workers and freight or passenger transport enterprises with one or more workers.

Exclusions: Self-employed persons.

Source of Funds

Insured person: 2% of gross earnings.

There are no minimum or maximum earnings for contribution calculation purposes.

Self-employed person: Not applicable.

Employer: 4% of gross payroll.

There are no minimum or maximum earnings for contribution calculation purposes.

Government: 2% of gross payroll.

There are no minimum or maximum earnings for contribution calculation purposes.

Qualifying Conditions

Cash sickness and maternity benefits: The insured must have at least 3 months of contributions in the 6 months before the incapacity began.

Medical benefits: The insured must be in covered employment.

Sickness and Maternity Benefits

Sickness benefit: The benefit is 66.7% of average earnings and is paid after a 3-day waiting period for up to 26 weeks; may be extended to 39 weeks. The receipt of benefits for multiple periods of illness must not exceed 52 weeks in a 24-month period.

The maximum monthly benefit is 2,400 quetzales.

Maternity benefit: The benefit is 100% of earnings and is paid for 30 days before and 54 days after the expected date of childbirth. Nursing mothers are also permitted 1 hour a day at work to nurse their child, for up 10 months.

Benefit adjustment: Benefits are adjusted periodically according to a financial assessment of the program.

Workers' Medical Benefits

Benefits include general, specialist, and maternity care; surgery; hospitalization; medicine; laboratory services; X-rays; appliances; transportation; rehabilitation; and retraining. Medical services are normally provided directly to patients through the medical facilities of the Social Security Institute.

Free medical benefits for accidents, sickness, and maternity care are provided for pensioners through the old-age, disability, and survivors program in 19 departments.

Dependents' Medical Benefits

The wife or partner of an insured man receives the same maternity care as an insured woman and receives sickness and accident benefits in 19 administrative departments.

Free medical benefits for accidents, sickness, and maternity care are provided for pensioners through the old-age, disability, and survivors program in 19 administrative departments.

Administrative Organization

Ministry of Labor and Social Welfare (http://www.mintrabajo.gob.gt) provides general supervision.

Social Security Institute (http://www.igssgt.org) administers the program and operates 24 hospitals, 35 clinics, 16 first-aid stations, and other medical services.

Work Injury

Regulatory Framework

First law: 1947.

Current law: 1994, implemented in 1995, with 2003 amendment.

Type of program: Social insurance system.

Note: Work injury benefits are administered as part of the old-age, disability, and survivor program.

Coverage

All insured workers in the country.

Exclusions: Self-employed persons.

Source of Funds

Insured person: 1% of gross earnings.

There are no minimum or maximum earnings for contribution calculation purposes.

Self-employed person: Not applicable.

Employer: 3% of gross payroll.

There are no minimum or maximum earnings for contribution calculation purposes.

Government: 1.5% of gross payroll.

There are no minimum or maximum earnings for contribution calculation purposes.

Qualifying Conditions

Work injury benefits: The insured must have at least 3 months of contributions before the work injury or occupational disease began.

Temporary Disability Benefits

The benefit is 66.7% of earnings and is paid after a 1-day waiting period.

The minimum daily benefit is 8 quetzales.

The maximum monthly benefit is 2,400 quetzales.

Benefit adjustment: Benefits are adjusted periodically according to a financial assessment of the program.

Permanent Disability Benefits

Permanent disability benefit: A lump sum of between 495 quetzales and 4,950 quetzales is paid according to the assessed degree of disability.

Benefit adjustment: Benefits are adjusted periodically according to a financial assessment of the program.

Workers' Medical Benefits

Benefits include medical treatment, surgery, hospitalization, medicine, appliances, transportation, rehabilitation services, X-rays, laboratory tests, and retraining.

Survivor Benefits

Funeral grant: A lump sum of 412.50 quetzales is paid toward the funeral expenses.

Benefit adjustment: Benefits are adjusted periodically according to a financial assessment of the program.

Administrative Organization

Ministry of Labor and Social Welfare (http://www.mintrabajo.gob.gt) provides general supervision.

Social Security Institute (http://www.igssgt.org) administers contributions and benefits and provides medical benefits through its 24 hospitals and 35 clinics as well as through private clinics.