Hire and pay employees in
El Salvador, hassle-free

The minimum wage is USD 182.50 per month.

The individual income tax ranges from 0% to 30%. Income tax is calculated according to progressive rates. 

The employer cost is generally estimated at 16.25-17.25% of the employee salary.

• Social Security - 7.50%
• Pension Fund - 8.75%
• Work From Home Allowance - USD 50

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Standard working hours consist of 8 hours per day, not including a one-hour lunch break, totaling 40 hours per week from Monday to Friday. Additionally, employees may have an extended work schedule of 44 hours, which includes Monday to Friday with an 8-hour workday plus a 1-hour lunch break (not counted as working time), and Saturday from 8:00 a.m. to 12:00 p.m.

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 4 hours of overtime per week. For additional hours, employees are paid:

• Day shift rate: 200% of the regular hourly rate.
• Night shift additional rate: 25% on top of the regular rate.
• Public holidays: Considered overtime, paid at 400% of the regular hourly rate.

Employees are entitled to 16 weeks of paid leave. The employee will receive 75% of the salary during this period, and Social Security will be responsible for this pay.

The employee may extend their leave without pay, subject to the company's discretion.

Employees are entitled to 3 days of paid paternity leave.  The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay.

The employee may extend their leave without pay, subject to the company's discretion.

In El Salvador, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Employees are entitled to paid sick leave for up to 52 weeks, which can be taken upon the presentation of a medical certificate. The pay rate for this leave varies and is provided by different payers depending on its duration.

Terminations in El Salvador can be complex. There is no at-will termination in El Salvador  for employers outside the probation period.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • probation period
  • objective grounds
  • disciplinary dismissal
  • performance due to unsuitability for the job
• By expiration of the contract

The minimum notice period is 15 days, and it increases according to the length of employment:

• 15 days for a service length of 1 to 3 years.
• 30 days for a service length of over 3 years.

During the probation period, no notice period is required.

In El Salvador, employees terminated without cause or those who resign are entitled to severance pay:

• Resignation: Severance equals 15 days of the base salary.
• Termination without cause: Minimum severance is 30 days of the base salary.

Both full-time and part-time employees are entitled to 15 days of paid time off (PTO) a year. PTO accrues monthly at 1.25 days per month. Employees are eligible for annual leave after 6 months of work. 

El Salvador celebrates both 9 national and 2 regional holidays based on the location of the employee.

National public holidays include:

• New Year's Day (3 days)
• Holy Thursday
• Good Friday
• Easter Day
• Labour Day
• Central American and Caribbean Games
• Fiesta de San Salvador
• All Souls' Day
• Christmas Day (2 days)

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• name
• start date
• length of the employment
• job description
• termination conditions

Probation periods are not mandatory. When implemented, the probation period lasts for 30 days.