Arts. 1–19

Every employer is obligated to grant annually to its workers, as a year-end bonus, the equivalent of one hundred percent of the ordinary monthly salary or wage that they earn for one year of continuous services or the corresponding proportional part.

The benefit referred to in the preceding article shall be paid fifty percent in the first fortnight of the month of December and the remaining fifty percent in the second fortnight of the month of January following.

Private companies or employers that, by agreements, collective pacts, custom or voluntarily, cover one hundred percent of the benefit of the year-end bonus in the month of December are not obligated to pay any supplement in the month of January.

The continuity of work is not interrupted by leaves with or without receipt of wage, individual or collective, partial or total suspensions enjoyed by the worker during the course of the employment relationship.

Advances made to the worker on account of the year-end bonus during the year do not exempt the employer from the obligation to pay the entirety of the benefit at the time provided for in this Decree.

The year-end bonus is not accumulable from year to year, with the purpose of subsequently receiving a greater sum; but the worker, upon termination of his contract, has the right to have the employer immediately pay him the proportional part thereof, in accordance with the time worked.

Workers who for any reason have received or receive a cash year-end bonus greater than that established in Article 1 of this law have the right to continue enjoying it in accordance with the greater amount received.

Written record must be made of payment of the year-end bonus benefit.

If the employer, upon request by the labor authorities, does not show the respective record with the signature or fingerprint of the worker, it is presumed, save evidence to the contrary, that the year-end bonus has not been paid.

It is prohibited to substitute this benefit with payment in kind thereof.

For the calculation of the compensation referred to in Article 82 of the Labor Code, the amount of the year-end bonus earned by the worker in question must be taken into account, in the proportion corresponding to six months of service, or for the time worked if the services do not reach six months.

For the field worker and one whose contract does not require him to work every day, every week or every month of the year to be entitled to the benefit, it shall suffice that he has worked at least one hundred fifty workdays or work tasks, whatever the nature or modality of the contract may be.

Employers or companies that are not economically able to grant the year-end bonus in whole or in part to their workers must prove it by means of a sworn declaration, which they shall submit before the nearest administrative labor authorities. Said declaration shall be made within the first fifteen days of the month of November of the year in question, this right being deemed waived by the employer that fails to do so within the prescribed period and remains obligated to pay the benefit.

The declaration referred to in the preceding article may be made by means of a record drawn up before the corresponding public official or in written form with a legalized signature. The administrative labor authorities are obligated to establish the veracity of the declarations, conducting the pertinent investigations and acting in accordance with the law in case of inaccuracy.

Violations by action or omission of the precepts contained in this law constitute work faults and must be sanctioned in accordance with the provisions of labor legislation.

The provisions of this law must be observed without prejudice to the rights corresponding to the workers by reason of custom, agreement, legal or regulatory provision, relating to payment of deferred or accumulated wages.

The year-end bonus referred to in this law, for the person granting it and for the person receiving it, is deductible from Income Tax, is not subject to the payment of any kind of taxes, fees and other charges, including the Stamp and Stamped Paper Tax, and is not subject to the payment of the contributions to the Guatemalan Institute of Social Security, the Workers' Recreation Institute and the Technical Institute for Training and Productivity. It is unseizable, save for the exceptions prescribed by special laws.

Compliance with what is prescribed by this law does not exempt the employer that has established additional benefits, deferred wages, production premiums or bonuses, from granting them.

The declaration referred to in Articles 11 and 12 of this law may be made in the present year until December 15, inclusive.

Decree 1634 of the Congress of the Republic and all provisions that oppose the present law are repealed.

This Decree was unanimously approved by the quorum present, shall enter into force immediately and shall be published in the Official Gazette.