Hire and pay employees in El Salvador, hassle-free
With Deel, your business can easily hire employees in El Salvador. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries. The average onboarding time frame in the El Salvador is 5 days with Deel.
Onboard, pay and manage employees in El Salvador with Deel
Usually, to hire in El Salvador, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Now you can hire employees in El Salvador quickly, easily, and compliantly. Automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
Currency
Capital
Official language
Payroll cycle Monthly
All the necessary benefits for El Salvador built right in
Deel allows you to provide localized benefits for employees in El Salvador within minutes. All in one manageable online dashboard in a single HR platform.
- Pension
- Social Security
- Work From Home Allowance
- Private Healthcare - Allianz (optional)
- Optional global health insurance - Allianz
- Global Life Insurance - Allianz
Our quickstart guide to hiring in El Salvador
Navigate the tabs below to learn everything you need to know about hiring an employee in El Salvador
Minimum Wage Requirements
The minimum wage is USD 182.50 per month.
Individual Income Tax
The individual income tax ranges from 0% to 30%. Income tax is calculated according to progressive rates.
|
Gross Annual Income |
Tax Rate (%) |
|---|---|
|
Up to USD 5.664,00 |
0% |
|
Between USD 5.664,12 - USD 10.742,88 |
10% |
|
Between USD 10.743 - USD 24.457,2 |
20% |
|
Over USD 24.457,32 |
30% |
Payroll Cost
The employer cost is generally estimated at 17.15% of the employee salary.
- Social Security* - 7.50%
- Pension Fund - 8.75%
- National Institute for Professional Training (INCAF)* - 1%
- Work From Home Allowance - US$ 50
*The cost is calculated on the employee’s salary up to a maximum salary of US$ 1,000 per month.
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.
Overtime Pay & Maximum Hours
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.
Download the complete guide to hiring in El Salvador
Hiring in El Salvador, hassle-free
With Deel, your business can easily hire employees in El Salvador with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in El Salvador and 150+ countries.
Management fee
Starting at
$599
/month
Estimated Employer Cost
17.15%
of employee salary