Expand your global workforce in El Salvador
Your guide to the employment landscape, working customs and local labor laws in El Salvador
Capital
San Salvador
Currency
United States Dollar (USD)
Languages
Spanish
GDP per Capita
$5,490.00
Employer Tax
15.25%-16.25%
Payroll Frequency
Weekly, Bi-Weekly, or Monthly
Talent overview
El Salvador is located in Central America. The economy of this country mainly relies on energy, manufacturing, telecommunications, services, and agriculture. The economic growth of El Salvador over the last five years has been booming.
Major economic hubs:
San Salvador, Soyapango, Santa Ana
Skills in demand:
Technicians, Engineering, Management, Accounting, Logistics
El Salvador
Top local universities in El Salvador
Universidad de El Salvador
Ranking
Local: 1
World: 2,156
Universidad Centroamericana José Simeón Cañas
Ranking
Local: 2
World: 1972
Universidad Tecnológica de El Salvador
Ranking
Local: 3
World: 4560
Universidad Don Bosco
Ranking
Local: 4
World: 5222
Universidad Francisco Gavidia
Ranking
Local: 5
World: 5593
Top Local Job Boards
Number of LinkedIn users
793,000
Top Recruitment Agencies
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
Some of the popular jobs and their annual salaries are listed below:
| Job Title | Average Monthly Salary (in USD) |
| Accountant | 1,170 |
| Graphic Designer | 1,010 |
| Business Analyst | 2,000 |
| Software Engineer | 1,590 |
| Sales Manager | 2,760 |
Employ in El Salvador
Employing in El Salvador
Below are the key points an employer must keep in mind while seeking employees in El Salvador.
Employee Contract
Employment contracts in El Salvador must be drafted in the local language. Contracts can be written or oral; however, having a written agreement is recommended. The currency of the compensation must be USD.
Probation Period
The probationary period for employees in El Salvador can be a maximum of 30 days.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| April 17 | Maundy Thursday | National Holiday |
| April 18 | Good Friday | National Holiday |
| April 19 | Holy Saturday | National Holiday |
| May 1 | Labor Day / May Day | National Holiday |
| May 10 | Mothers’ Day | National Holiday |
| June 17 | Fathers’ Day | National Holiday |
| August 3 | San Salvador Day 1 (S. Salvador only) | Local Holiday |
| August 5 | San Salvador Day 2 (S. Salvador only) | Local Holiday |
| August 6 | Celebrations of San Salvador | National Holiday |
| September 15 | Independence Day | National Holiday |
| November 2 | All Saints Day | National Holiday |
| December 25 | Christmas Day | National Holiday |
Employee Leaves
| Type of Leave | Duration | Mandatory |
| Annual Leave | 15 days | Yes |
| Sick Leave | 20- 60 days | Yes |
| Maternity Leave | 16 weeks | Yes |
Leave Compliance
Public and Provincial Holidays
Payroll in El Salvador
Payroll cycle
Employees in El Salvador can be paid weekly, bi-weekly, or monthly.
Minimum wage
Minimum wages in El Salvador range from 272.66 USD to 359.16 USD based on the industry.
Overtime pay
Employees in El Salvador usually work 44 hours a week. Work beyond this is considered overtime and is paid at 200% of the regular pay.
How taxes work
Employer Payroll Tax
| Contributions | Rates (%) | Salary Cap (USD) |
| Social Security | 7.50% | 1000 |
| Death and Pension Fund | 8.75% | |
| Total Employer Contribution | 16.25% |
Employee Payroll Tax
| Contributions | Rates (%) | Salary Cap (USD) |
| Social Security | 3.00% | 1000 |
| Death and Pension Fund | 7.25% | |
| Total Employee Contribution | 10.25% |
Employee Income Tax
| Annual Taxable Income (USD) | Tax Rate (%) |
| 0 to 4,064 | Exempt from income tax |
| 4,064.01 to 9,142.86 | 10% |
| 9,142.87 to 22,857.14 | 20% |
| More than 22,857.15 | 30% |
VAT
VAT in El Salvador is charged at 13%.
Bonus
13th Month Pay
The 13th month’s pay in El Salvador is mandatory and is paid at Christmas. The amount for this depends on the number of years an employee has worked at an organization.
Employee Benefits
- Maternity Leave
- Social Security
- 13th Month pay
- Pension Fund
- Paternity Leave
Employee offboarding
Employment in El Salvador can be terminated both by the employee and the employer. The employer can terminate the employment only on substantial grounds. If the employer terminates the employment without substantial grounds, they must pay severance to the employee.
In El Salvador, employees on probation must serve a notice period of a minimum of 7 days upon termination of the employment contract. Permanent employees must serve a notice of 7 – 15 days upon termination of the contract.
Severance pay in El Salvador is usually calculated as 30 days’ salary for every year of service.
Visa and
immigration
A visa is mandatorily required for foreign nationals seeking jobs in El Salvador. An individual must obtain a work permit and a temporary residence permit. These permits are valid for 1 – 2 years and may be extended to up to five years. Individuals from other Central American countries may directly apply for permanent residence. Individuals from Spain, Latin America, or other Spanish-speaking countries may apply for permanent residency after one year. Other foreign nationals can apply for permanent residency after three consecutive renewals of their temporary permit.
Your employment toolkit for El Salvador
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Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration