Hire in El Salvador

El Salvador, also known as the Republic of Salvador, is a Central American country bordered by Guatemala and Honduras. It is the smallest nation in Central America with a total area of 21,041 square kilometers, and its coast borders the Pacific Ocean. It is the only Central American country without a Caribbean coast. The service sector dominates the economy, although historically it was predominantly agriculturally driven, with the nation’s primary exports including coffee, maize, sugarcane, and cotton.

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in El Salvador.

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Easily onboard your remote talent in El Salvador through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of El Salvador

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Cost of living index

$$ (71 out of 139)

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Currency

United States Dollar (USD, $)

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Payroll frequency

Weekly, fortnightly, or monthly basis

Basic facts

El Salvador, also known as the Republic of Salvador, is a Central American country bordered by Guatemala and Honduras. It is the smallest nation in Central America with a total area of 21,041 square kilometers, and its coast borders the Pacific Ocean. It is the only Central American country without a Caribbean coast. The service sector dominates the economy, although historically it was predominantly agriculturally driven, with the nation’s primary exports including coffee, maize, sugarcane, and cotton.

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in El Salvador.

Capital

San Salvador

Official language/s

Spanish

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Population

6.36 million (2023 est.)

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VAT - standard rate

13%

The holidays mentioned below are valid for the year 2025.

January 1New Year’s Day
April 17Maundy ThursdayMovable
April 18Good FridayMovable
April 19Easter SaturdayMovable
May 1Labor Day
May 10Mother's Day
June 17Father's Day
August 6Feast of San Salvador
September 15Independence Day
November 2All Soul’s Day
December 25Christmas Day

The approximate time for sharing the contract with an employee in El Salvador is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • Teleworking arrangements must be stated in the employment agreement itself, or in an addendum. This is because policies on the conditions of remote work must be made clear to the employee.
  • The employer must reimburse the remote employee for a proportional amount of relevant costs such as electricity or internet services.
  • Annual leave increases with age.
  • Overtime work may only be performed occasionally, under special or unforeseen circumstances.

The Institute of Salvadorian Social Security (ISSS) is El Salvador’s main social security system. It provides health insurance, pensions, disability benefits, and so on. Employers must contribute the following to the social security scheme:

 

Benefits Employer Contribution Rate
Institute of Salvadorian Social Security (ISSS) 7.5%
Pension Fund (AEP) 8.75%
Instituto Salvadoreño de Formación Profesional (INSAFORP) 1%

 

Working Hours

The general work week in El Salvador is 44 hours a week or eight hours a day, Mondays to Saturdays. The employer should schedule the hours of work, but later modifications should be made with the employee’s consent. Employees are entitled to breaks of 30 minutes, which should be included in the working time.

Overtime

Overtime work should be remunerated with a 100% increase on the basic salary per hour. Overtime working hours should be agreed upon between the parties; not imposed by the employer.

 

Probation Period

It may be stipulated in the employment agreement that the first 30 days of employment would be probation days. Once the probation days expire, assuming neither the employer nor employee have expressed their will to terminate the contract, then the contract will continue for an indefinite period of time.

Termination Notice Period

For work that lasts more than two weeks, the employer is obliged to give written notice of at least seven days. The employer is required to serve a contract termination notice to the employee or pay in lieu of notice.

Working Hours

The general work week in El Salvador is 44 hours a week or eight hours a day, Mondays to Saturdays. The employer should schedule the hours of work, but later modifications should be made with the employee’s consent. Employees are entitled to breaks of 30 minutes, which should be included in the working time.

Overtime

Overtime work should be remunerated with a 100% increase on the basic salary per hour. Overtime working hours should be agreed upon between the parties; not imposed by the employer.

 

Probation Period

It may be stipulated in the employment agreement that the first 30 days of employment would be probation days. Once the probation days expire, assuming neither the employer nor employee have expressed their will to terminate the contract, then the contract will continue for an indefinite period of time.

Termination Notice Period

For work that lasts more than two weeks, the employer is obliged to give written notice of at least seven days. The employer is required to serve a contract termination notice to the employee or pay in lieu of notice.

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The Institute of Salvadorian Social Security (ISSS) is El Salvador’s main social security system. It provides health insurance, pensions, disability benefits, and so on. Employers must contribute the following to the social security scheme:

 

Benefits Employer Contribution Rate
Institute of Salvadorian Social Security (ISSS) 7.5%
Pension Fund (AEP) 8.75%
Instituto Salvadoreño de Formación Profesional (INSAFORP) 1%