Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - El Salvador

Your quick guide on talent and labor compliance norms in El Salvador
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San Salvador
US Dollar (USD)
Payroll Frequency
Weekly, bi-weekly, or monthly.
GDP per Capita
$4,408.50 (2021)
Employer Tax
15.25% - 16.25%

Supplementary Guide for Employment and Expansion in El Salvador

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. It was affected in 2020 by the Covid-19 pandemic but has rebounded in 2021 positively.

Major Economic Hubs:

San Salvador, Soyapango, Santa Ana

Skills in Demand:

Technicians, Engineering, Management, Accounting, Logistics

Local Universities

The top local universities in El Salvador are as follows:

Universidad de El Salvador


El Salvador : 1

World : 1,666

Universidad Centroamericana José Simeón Cañas


El Salvador : 2

World : 2,623

Universidad Tecnológica de El Salvador


El Salvador : 3

World : 3,300

Universidad Francisco Gavidia


El Salvador : 4

World : 4,853

Universidad Dr. Jose Matias Delgado


El Salvador : 5

World : 5,124

Salary Data

Some of the popular jobs and their annual salaries are listed below:

No. Job Title Monthly Average Salary (in USD)
1 Accountant 1,170
2 Graphic Designer 1,010
3 Business Analyst 2,000
4 Engineer 1,590
5 Sales Manager 2,760

Talent Sourcing Tips

Top Local Job Boards:

Teloco, BuscoJobs

Number of LinkedIn users:


Top Recruitment Agencies:

Integral Workers, Outsourcing 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
1st January New Year Holiday Public Holiday
14th April Maundy Thursday Public Holiday
15th April Good Friday Public Holiday
17th April Easter Public Holiday
1st May Labor Day Public Holiday
10th May Mother’s Day Public Holiday
17th June Father’s Day Public Holiday
6th August Feast of San Salvador Public Holiday
15th September Independence Day Public Holiday
2nd November All Soul’s Day Public Holiday
25th December Christmas Public Holiday

Employee Leaves:

Type of Leave Duration Mandatory
Annual Leave 15 days Yes
Sick Leave 20 days Yes
Maternity Leave 16 weeks Yes


Payroll Cycle

Employees in El Salvador can be paid weekly, bi-weekly, or monthly.

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Minimum Wage

Minimum wages in El Salvador are specific to the industry an employee works in

  • ~Commerce, Industrial, and Service - $365 
  • ~Maquila, Manufacturing, and Textile - $359.16
  • ~Coffee Mill and Sugarcane Harvesting - $272.66
  • ~Agriculture - $243.46
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Overtime Pay

Employees in El Salvador usually work for 44 hours in a week. Work beyond this is considered overtime and is paid at 200% of the regular pay.

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Health Examination Clause


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 - 3 days

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Employer Payroll Tax:

Monthly Income (USD) Type of Tax Rate
1 - 1,000 Social Security 7.5%
Above 1,000 Flat amount - $51.49
1 - 6,523.20 APF (Pension Fund) 7.75%
1 - 1,000 Payroll Tax (for companies with more than 10 employees) 1%

Employee Payroll Tax:

Monthly Income (USD) Type of Tax Rate
1 - 1,000 Social Security 3%
Above 1,000 Flat amount - $30
1 - 6,523.20 APF (Pension Fund) 7.25%

Employee Income Tax:

Income (USD) Rate
1 - 4,064 0%
4,064 - 9,142.86 $212.12 + 10% on excess over $4,604
9,142.86 - 22,857.14 $720 + 20% on excess over $9,142.86
Above 22,857.12 $3,462.86 + 30% on excess over $22,857.14


VAT in El Salvador is charged at 13%.

Offboarding & Termination

Termination Process

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.

Notice Period

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

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.

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