El Salvador

• New Year’s Day
• Holy Thursday
• Good Friday
• Holy Saturday
• Easter Sunday
• Labour Day
• Mother’s Day
• Father’s Day
• Fiestas Patronales Holiday
• Fiesta de San Salvador
• Independence Day
• Christmas Eve
• Christmas Day
• New Year’s Eve

Working Hours

The standard work week is 8 hours a day over 5.5 days, or 44 hours per week.

Minimum Wage

The minimum wage is governed by the sector. It currently ranges from USD 243.46 to USD 365 per month.

Employee Tax

Annual income	Tax rate
Up to USD 4,064	0%
USD 4,064 - 9,142.86	10% + USD 212.12
USD 9,142.86 - 22,857.14	20% + USD 720
More than USD 22,857.14	30% + USD 3,462.86
Social security contribution	3%
Pension fund contribution (AEP)	7.25%

Bonuses

Employees in El Salvador are entitled to a 13th month salary, which is payable in December.

Employment contracts in El Salvador must be written in Spanish and issued to the employer, employee, and General Labor Office. They should include:

• Employee details (including date of birth, gender, and nationality)
• Workplace
• Working hours
• Salary
• Job title and description of duties

Both indefinite and fixed-term contracts are permitted in El Salvador.

Annual Leave

Minimum of 15 days' paid holiday after one year of service. Annual leave is paid at 130% of the employee's salary.

Sick Leave

Up to 60 days’ sick leave paid at 75% of the employee’s salary. The actual sick leave entitlement depends on length of service.

Parental Leave

• Maternity leave: up to 16 weeks' leave, paid at 75% of the mother's normal salary.
• Paternity leave: 3 days' fully paid leave.

Termination Process

Employers in El Salvador can terminate a contract provided they give notice and/or compensation in line with legal requirements.

Employees can also give notice of termination in line with their contract terms.

Severance Pay

Employees are entitled to 30 days' severance pay per year of service, if hired for an indefinite period and dismissed without just cause.

If an employee terminates the employment contract, they are entitled to severance pay equivalent to 15 days' salary for each year worked.

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