Overview

Capital
San Salvador
Currency
United States Dollar (USD)
Date Format
dmy

Taxes

Employer
7.50% - Social Security
7.75% - AEP (Pension Fund)
Employee
3.00% - Social Security
7.25% - AEP (Pension Fund)
0% - Up to 4,064.00
$212.12 + 10% on all salary over $4,064 - 4,064 - 9,142.86
$720 + 20% on all over $9,142.86 - 9,142.86 - 22,857.14
$3,462.86 + 30% on all over $22,857.14 - Over 22,857.12 * Non-locals pay flat rate of 30%

Minimum Wage

General
The minimum wage varies depending on the industry. - Commerce & services, industry, and sugar refineries: $1.25 hr/$300 monthly - Textile and garments: $1.23 hr/ $295.2 monthly - Sugarcane harvesting and coffee mills: $0.934 hr/$224.10 monthly - Agricultural workers, coffee harvesting, cotton harvesting, cotton mills: $0.834 hr/224.10 monthly

Working Hours

General
Fulltime employment is considered 44 hours weekly. The length of days may be structured by employee.
Overtime
Overtime is paid at 200%

VAT

General
13% standard rate, applied to the transfer of movable goods and the provision of services.

Mandatory Benefits

Pension Fund
The pension fund in El Salvador is called AEP. Employees contribute 7.25%, and Employers contribute 7.75% with salary ceiling off $6,500.
Social Security
Social security contributions are made to a health fund, employers contribute 7.5%, and employees contribute 3% of their monthly salary. * Salary ceiling is $1,000.

Payroll

General
Salarys are paid semi-monthly.

Termination

Termination Process
Employers are not obligated to provide notice.
Advance Notice
Employees are not obligated to provide advance notice.
Severance Pay
Employees terminated without just cause is entitled to one months salary for ever year employed by the company, plus expected vacation and year end bonus.