El Salvador
Hire Employees & Contractors

El Salvador

Compliantly hire your distributed team members in

El Salvador

Person working on laptop

Hiring in

El Salvador

isn't so simple. Borderless can help.

To hire new employees in

El Salvador

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in

El Salvador

while staying fully compliant with local laws and compliance.

Primary Language



United States Dollar (USD)

Payroll Frequency


Public Holidays

12 days

Employer Taxes

15.25% - 16.25%

Cost of Living Index

44.57 (2021)

Statutory Leave

15 days

Sick Leave

20 - 60 days

Maternity Leave

16 weeks

Important: Risks of misclassification

In many countries like

El Salvador

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

USD 243.46 - 365 per month

Overtime Pay

The standard work week in El Salvador is 44 hours a week, typically 8 hours a day over five and a half days.. The standard work week is Monday - Friday.  The employment contract and collective agreements govern all labor performed in excess of the regular weekly working hours, which is compensated as overtime. Except for minors, there are no upper limits on the amount of hours permitted.

All extra hours beyond 44 per week are typically compensated at a rate equal to 200% of the employee's regular income.

Additional Pay

In El Salvador, employees who have suffered the loss of an immediate family member are entitled to one day of paid leave bereavement leave.

Payroll Cycle

For Borderless customers, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

  • 7.50% - Social Security (up to a maximum monthly cap of 1,000 USD Employees who have salaries above 1,000 USD the Employer’s social security contribution applicable is 51.49 USD
  • 7.75% - AEP -Pension Fund (maximum 6,523.20 USD)
  • 1.00% - INESAFORP (applicable to companies with more than ten employees, based on employee monthly salary of less than 1,000 USD per month)

Employee Costs & Taxes

  • 3.00% - Social Security (up to a maximum monthly cap of 1,000 USD Employees who have salaries above 1,000 USD the Employee’s social security contribution applicable is 30.00 USD
  • 7.25% - AEP (Pension Fund)
  • 0% - Up to 4,064.00 USD
  • 10% + $212.12 - 4,064.00 - 9,142.86 USD
  • 20% + $720 - 9,142.86 - 22,857.14 USD
  • 30% + $3,462.86 - Over 22,857.12 USD

Employment Information

Termination Process

The manner of termination varies depending on the terms of the employment contract or collective bargaining agreement and is determined by the type of contract, the duration of service, and the reason for termination.

Notice period

The notice time is outlined in the employee's employment contract or collect agreement; it is not required by law in El Salvador. However, it is customary to ask for a minimum of 7 days' notice from an employee once their probation has over.

Probation Period

The length of the probationary term in El Salvador varies depending on the position and is spelled out in the employment contract. Probationary periods are typically limited to 30 days.

Severance Details

Severance compensation in El Salvador is governed by particular rules and varies depending on the circumstances surrounding the employment termination. For instance, severance is not offered when an employee resigns or after the duration of the work contract has passed.

Severance pay is often computed as 30 days of compensation for each year of employment, if it is necessary.

Benefits of working in a country abroad

Borderless Benefits Packages in

El Salvador

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in

El Salvador

Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

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