* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
San Salvador

United States Dollar ($)


CST (GMT -6)

Employment Cost

15.25% - 16.25%

Annual Leave

15 days

In-demand Specialties*
It, Marketing And Sales, Hospitality

The Ultimate Guide to Hiring Employees in El Salvador

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-El Salvador-guide

Key Considerations Before Hiring In El Salvador

Employing in El Salvador requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in El Salvador with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in El Salvador quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

El Salvador offers a lower cost of living compared to many developed countries. This can result in cost savings for businesses looking to hire skilled professionals or build a dedicated team.

Many Salvadorans are bilingual in Spanish and English, aiding communication for businesses targeting Spanish-speaking markets or operating in English-dominated environments.

El Salvador's growing IT sector, particularly in software development and IT services, boasts a pool of talented professionals, making it an attractive destination for businesses needing tech expertise.

El Salvador's Central Standard Time (CST) aligns with North American business hours, facilitating real-time collaboration and communication between teams across the Americas.


Fundamental Aspects of Employment in El Salvador

In El Salvador, employment contracts can be either written or verbal, but it is common to use written agreements. A detailed written employment contract typically outlines the following:

  • Employee Information
  • Compensation
  • Job Details
  • Working Hours

Probationary Period in El Salvador

The probationary period varies depending on the type of role and is specified in the employment agreement. Probation periods cannot exceed 30 days.

Working hours in El Salvador

The standard working week in El Salvador comprises 44 hours, usually distributed as 8 hours a day over five and a half days.

Overtime in El Salvador

In El Salvador, extra work beyond the regular weekly hours is considered overtime, and its terms are defined in the employment contract or collective agreements. There are no specific limits on hours, except for minors. Overtime, usually exceeding 44 hours per week, is paid at a rate of 200% of the employee's regular salary.

Navigating Key Aspects of Payroll in El Salvador

El Salvador has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January- 31 December

Fiscal Year in El Salvador

1 January- 31 December is the 12-month accounting period that businesses in El Salvador use for financial and tax reporting purposes.

Payroll Cycle in El Salvador

The payroll cycle in El Salvador is usually monthly, with employees being paid by the last day of the month.
2.07 USD p/h

Minimum Wage in El Salvador

The minimum wage for employees in El Salvador is typically 2.07 USD per hour, amounting to ~365 USD per month for a typical 44 hour work week.

Minimum wages and salaries in El Salvador

Minimum wage rates in El Salvador vary by industry, with sector-specific amounts ranging from 243.46 USD for agricultural workers to 365.00 USD for those in the industry and commerce services sector.

Bonus Payments in El Salvador

It's common to give employees a 13th-month salary as a Christmas bonus around December 20th. The amount depends on their years of service: 15 days' salary for 1-3 years, 19 days for 3-10 years, and 21 days for over 10 years.

Comprehensive Overview of Employment Taxes in El Salvador

Understanding the tax obligations for both employers and employees is crucial when operating in El Salvador's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in El Salvador.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 15.25% - 16.25% on top of the employee salary in El Salvador.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In El Salvador, the typical estimation for employee payroll contributions cost is around 10.25%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Individual income tax in El Salvador varies from 0% to 30%, and the calculation follows a progressive rate structure.

Tax Rate Income Bracket

Pension in El Salvador

Employers in El Salvador contribute 8.75% to the pension fund. Employees qualify for a full pension by meeting either age and contribution requirements: 55 for women, 60 for men, with 25 years of contributions, or achieving 30 years of contributions at any age. The pension begins at 30% of the base salary for the initial three years and increases by 1.5% annually thereafter.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in El Salvador tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in El Salvador

When it comes to terminating employment in El Salvador, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

The process of termination is subject to the terms outlined in the employment agreement or collective agreement. It varies based on factors such as the type of contract, length of service, and the reason for termination. The employer can legally terminate the contract under the following grounds:

  • Deception with false documents.
  • Repeated negligence.
  • Serious breaches of contract obligations.
  • Disclosure of secrets.

Notice Period

In El Salvador, the notice period is based on the terms in the employment contract or agreement and is not a legal requirement. However, it is customary for employers to request a minimum of 7 days notice from employees who have completed their probationary period.

Severance Pay

Severance pay follows specific rules and varies based on the reasons for employment termination. No severance is given for voluntary resignations or the natural end of a contract. If required, it's usually calculated as 30 days of salary for each year of service.

Annual Leave Entitlements and Company Policies in El Salvador

The annual leave entitlement in El Salvador is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in El Salvador

El Salvador mandates the observance of the following national holidays:

Holiday Date

Paid Time Off in El Salvador

Maternity Leave in El Salvador

Paternity Leave in El Salvador

Sick Leave in El Salvador

Bereavement Leave

Parental Leave In El Salvador

El Salvador's Benefits Built Into Playroll

Competitive benefits package in El Salvador

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in El Salvador's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In El Salvador

Make your benefits package in El Salvador a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance

Statutory benefits for employment in El Salvador

The Institute of Salvadorian Social Security (ISSS) serves as El Salvador's primary social security system and aims to ensure access to healthcare and social protection for all Salvadorans.. Through montly contributions, employees are entitled to the following benefits:

  • Health insurance
  • Pension
  • Disability benefits
  • Maternity

Playroll allows you to provide localized benefits for employees in El Salvador within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in El Salvador create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for El Salvador

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in El Salvador.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

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Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

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Hiring International Employees is Complex.

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