Labor Laws in El Salvador
- Annual Leave: 15 days
- Maternity Leave: 16 weeks
- Public Holidays: 11
- Workweek: 44 hours per week.
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Capital:
San Salvador
Language:
Spanish
Currency:
United States Dollar
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Individual income taxes are progressive, ranging from 0% to 30% based on the worker’s earnings.
The standard VAT is 13%.
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.
Here is a summary of the work visas available to foreigners to work in El Salvador:
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We handle hiring, HR, and payroll while ensuring compliance with local regulations, all without establishing a local entity.
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