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Labor Laws in El Salvador

  • Annual Leave: 15 days
  • Maternity Leave: 16 weeks
  • Public Holidays: 11
  • Workweek: 44 hours per week.

Income Tax in El Salvador

Individual income taxes are progressive, ranging from 0% to 30% based on the worker’s earnings.

Value Added Tax (VAT) in
El Salvador

The standard VAT is 13%.

Social Security in El Salvador

Social security contributions are levied monthly on salaries at a rate of 7.5% for employers and 3% for resident and nonresident employees, with a monthly salary ceiling of USD 1,000.

Death and pension funds are covered by private institutions, which are funded through monthly contributions levied on salaries at a monthly rate of 8.75% for employers and 7.25% for employees, with a monthly salary ceiling of USD 6,500.

Work Visas El Salvador

Here is a summary of the work visas available to foreigners to work in El Salvador:

  • The government of El Salvador grants work authorization to foreign employees, under the option of temporary residents.
  • This is subject to certain rules that have to be checked on a case-by-case basis because these rules vary among employees and by country of citizenship.
  • The application may be filed before arrival in El Salvador. Work permits are valid for one year and are renewable for similar periods.

Hire El Salvadorian Talent with Global Expansion

Setting up a company in El Salvador can be expensive and complex. Global Expansion simplifies your entry into this market.

We handle hiring, HR, and payroll while ensuring compliance with local regulations, all without establishing a local entity.

Our El Salvador Employer of Record (EOR) solution gives you the freedom to focus on your business growth.

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