Guatemala: Employee Benefits Update

October 6, 2016:

The following changes in employee benefits have been reported back by Asinta’s Partner in Guatemala, Unity:

• The cost of medical care in Guatemala is currently increasing. The medical inflation rate was 12% (net 7.92%) in 2015, compared to the local general inflation rate in 2015 of 4.08%. Some reasons for the increasing cost of medical care include poor lifestyle habits (which thus increase health risks), cost shifting and an increased utilization of medical plans.

• The most common health risk factors include high blood pressure, high cholesterol, obesity and poor stress management. The most common illnesses currently being diagnosed include gastrointestinal and respiratory diseases. Doctors are starting to diagnose more gynecological issues, however, as well as increased numbers of high blood pressure, cancer and diabetes cases.

• Wellness programs in Guatemala are currently offered only by leading employers, who are often multinational corporations. Contributions toward premiums for the employee, spouse and dependent children are usually 75/25. Employee contributions for upgrades in benefit limits are optional. Eligible employees commonly include executives, managers, supervisors and white collar employees. Blue collar employees are usually covered by social security.

If you would like more information regarding the current state of employee benefits in Guatemala or Central America, please get in touch with Asinta Partner, Unity, via their contact page, here.