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El Salvador is country in Central America that is bordered by Honduras, Guatemala, and the Pacific Ocean. It is the smallest country in Central America known as the land of volcanoes. In 2001 the country changed its official currency to the US Dollar, and in 2021 it passed legislation to make Bitcoin legal tender in El Salvador.
There is no minimum wage in El Salvador since each sector determines their own. The average minimum wage is USD 365 per month. The standard workweek in El Salvador is 44 hours per week, for 8 hours a day over 5.5 days. Any work done past the standard hours is paid as overtime generally at around 200% of the salary.
Pregnant employees can receive up to 16 weeks of paid maternity leave, which is paid at 75% of the regular salary. At least 6 weeks of the leave need to be taken before the due date and up to 10 weeks after the birth. The leave can be extended if there are any complications.
Fathers are entitled to 3 days of paternity leave within 15 days of the birth, which is paid at 100% of the regular salary.
Employees in El Salvador are entitled to sick leave, with amounts based on how long they’ve been employed at the company. The sick leave is paid at 75%
There are 11 public holidays in El Salvador, and employees who have worked at least 1 year at their company are entitled to 15 days of paid time off each year.
In El Salvador, paid time off is paid at 130% of the regular salary and paid to the employee before their time off. Any vacation days that are unused are lost and not financially compensated. Employees can also request 1 day of paid bereavement leave per year.
The termination process in El Salvador varies based on whatever is stipulated in the employment contract.
The notice period is also stipulated within the employment contract. While a notice period for termination is not mandatory in El Salvador, it is a common practice for employees to provide a minimum of 7 days of notice to leave the company.
Severance pay will depend on the reasons for termination. Severance is not required in cases of resignation or if a fixed contract’s terms have elapsed.
Severance is generally calculated as 30 days of wages for every year at the company.
It’s common to pay a 13th month salary bonus to employees in December. The amount depends on how long the employee has worked at the company:
★ 7.5% - Social Security
★ 7.75% - Pension Fund
★ 1% - INSAFORP
You've sourced a full-time employee or contractor located in a country where your company is not incorporated.
Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.
Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.
It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.
Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.
