Overview

Capital
San Salvador
Currency
United States Dollar (USD)
Date Format
dd/mm/yyyy

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

Payroll

Payroll Cycle

Salaries are paid semi-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%

Payroll Contributions

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.

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.

Leave

Maternity Leave

Expecting mothers are entitled to 12 weeks leave paid at 75% by the goernment.

Paternity Leave

No statutory regulation

Parental Leave

No statutory regulation

Termination

Termination Process

Employers are not obligated to provide notice.

Notice Period

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.

VAT

General

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