Global Hirings

August 28, 2023

3 mins

El Salvador's Employment Landscape & Regulations

Situated in Central America, El Salvador's economy thrives on energy, manufacturing, telecommunications, services, and agriculture. Despite facing challenges due to the Covid-19 pandemic in 2020, the country has experienced significant economic growth in the last five years, with a positive rebound observed in 2021.

Employee Contract

In El Salvador, employment contracts must be in the local language and can either be written or oral, though having a written agreement is advised. The compensation currency must be in USD.

Probation Period

In El Salvador, the probationary period for employees cannot exceed 30 days.

Employee Leaves

Annual Leave -15 days

Sick Leave -20 days

Maternity Leave -16 weeks


Payroll Cycle

In El Salvador, employees have the option to be paid weekly, bi-weekly, or monthly.

Minimum Wage

In El Salvador, minimum wages vary based on the industry, ranging from 243.46 USD to 365 USD.

Overtime Pay

In El Salvador, employees typically work 44 hours per week, with any additional hours considered overtime and paid at 200% of the regular pay rate.


13th Month Pay

In El Salvador, the 13th month's pay is obligatory and is disbursed during Christmas. The amount varies based on the number of years an employee has been with the organization.

Employee Benefits

  • Maternity Leave
  • Social Security
  • 13th Month pay
  • Pension Fund
  • Paternity Leave


El Salvador imposes a 13% VAT (Value Added Tax).

Offboarding & Termination

Termination Process

In El Salvador, both employees and employers have the right to terminate employment. Employers can only do so with valid reasons, and if they terminate without substantial grounds, they are required to provide severance pay to the employee.

Notice Period

In El Salvador, employees on probation must provide a minimum of 7 days' notice upon termination of the employment contract. For permanent employees, the notice period is 7–15 days upon termination of the contract.

Severance Pay

In El Salvador, severance pay is typically calculated as 30 days' salary for each year of service.

Visa and Immigration

Foreign nationals intending to work in El Salvador must possess a mandatory visa. The process involves obtaining both a work permit and a temporary residence permit, with the permits typically valid for 1 to 2 years, and the possibility of extension for up to five years. In contrast, individuals from other Central American countries have the option to directly apply for permanent residence in El Salvador.

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.


📬 Receive our amazing posts straight to your inbox. Get the latest news, company insights, and Niural updates.

Thank you! Your message has been received!
Oops! Something went wrong. Please fill in the required fields and try again.

If you're considering hiring employees or contractors in El Salvador or seeking compliant payroll solutions, contact us or book a demo at For further insights, follow us on Twitter @niuralhq. Make informed decisions and ensure a successful hiring process in El Salvador!

Request a demo