Pension
In Guatemala, the Social Security Institute (Instituto Guatemalteco de Seguridad Social) administers pensions and social benefits to employees of firms with at least three workers, individuals employed in freight or passenger transport enterprises with at least one worker, and public-sector employees not covered by a specialized system.
The retirement age is 60 years. Employees who reached retirement age and have paid at least 240 contributions are entitled to old age pension. Those with less than 240 contributions but with at least 12 contributions are entitled to old-age settlement benefit as a lump sum.
There is a Economic Contribution Program for the Elderly, where the government pays social pension to those who have turned 65 years old, have low income or disability and no other pension. The pension is paid as GTQ 400 per month. This scheme is funded through contributions from high income individuals and companies.
Dependents/Survivors Benefits
A widow or disabled widower entitled to a survivors pension will receive 50% of the old-age or disability pension the deceased received or was entitled to receive. The minimum monthly widow(er)'s pension is GTQ 170 (Guatemalan quetzales).
Each eligible child younger than age 18 (no age limit if disabled) will receive 25% of the old-age or disability pension the deceased received or was entitled to receive; 50% if both parents are deceased. The minimum monthly orphan's pension is GTQ 85; GTQ 170 if parents are deceased.
A dependent parent will receive 25% of the old-age or disability pension the deceased received or was entitled to receive. The minimum monthly dependent parent's retirement is GTQ 85. The minimum combined monthly survivor pension is GTQ 340.
The maximum combined survivors pension is 100% of the old-age or disability pension the deceased received or was entitled to receive.
Invalidity Benefits
In Guatemala, the social insurance system provides benefits for disabled workers, whether their injury is occupational or non-occupational. To be eligible for benefits, the insured must have contributed for at least 36 months in the last 6 years immediately before disability. There are 2 types of disabilities recognized for benefits, depending on the degree of disability:
- Total disability - If the insured is unable to obtain a remuneration greater than 33% of what is usually received in the same region by a healthy worker, with similar capacity, category and professional training.
- Severe disability - If the insured is unable to obtain remuneration and permanently need the help of another person to perform the acts of ordinary life.
The disability pension is initially granted for 1 year and continued depending on annual evaluation. The disability pension is not payable abroad. It ceases at the regular retirement age and is replaced by an old-age pension. It also ends if the pensioner recovers the ability to work.
Benefits are also provided for work-related and non-work-related accidents or occupational diseases. For cash benefits, the insured must have at least 3 months of contributions before the work injury or occupational disease began. For medical benefits, there is no minimum qualifying period if the insured is in covered employment; unemployed persons must have at least 3 months of contributions in the last 6 months before the work injury or occupational disease began.